Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News Chemical fiber raw materials are booming, but gray fabrics are as humble as dust: it is too difficult to even increase by 1 point!

Chemical fiber raw materials are booming, but gray fabrics are as humble as dust: it is too difficult to even increase by 1 point!



The National Day holiday has just passed, and the raw material market seems to have made a 180-degree turn, changing the decline in the past few months and showing continuous rises. Although on October 10, inve…

The National Day holiday has just passed, and the raw material market seems to have made a 180-degree turn, changing the decline in the past few months and showing continuous rises. Although on October 10, investors believed that the economic storm may herald a global economic recession and erode fuel demand, international oil prices fell for the first time in six trading days. But even so, so far, chemical fiber raw materials still have increased to varying degrees.

On October 8, coupled with the increase during the National Day, the prices of various specifications of polyester yarn in polyester factories generally increased by 100-300 yuan/ton;

On October 9, the price of polyester filament continued to rise, and the price of polyester yarn in various factories ranged from 50 to 100 yuan/ton…

In addition to polyester filament, the prices of spandex, nylon and other raw materials have also increased to varying degrees, and the increase is almost not small. 40D spandex yarn and 70D spandex yarn have increased by 2,500 yuan/ton, which is the product with the largest increase, but this also complies with the consistent logic of spandex. Nylon POY and DTY have increased by 200 yuan/ton since the beginning of the month.

Obviously, only a few days have passed, but the changes in the raw material market do not feel like 2022 anymore. What is the reason for this?

International oil prices rise

During the National Day, as OPEC+ decided to cut crude oil production by 2 million barrels per day starting in November, causing concerns about tightening crude oil, crude oil surged 16%! Affected by these unexpected factors, international oil prices have continued to rise sharply in the short term, which has also contributed to the rising prices of polyester raw materials to some extent.

Changes in market demand

Compared with upstream crude oil prices, the recent improvement in market conditions is a more direct reason for the rise in raw material prices. The National Day holiday is over, and new cold air has arrived. The sales of winter clothing have increased sharply, and at the same time, it has driven the sales of cold-proof clothing fabrics downstream. And as the “Double Eleven” and “Double Twelve” e-commerce festivals approach, although large orders are still lacking, small batch orders have begun to be placed frequently. At the same time, the foreign trade market has ushered in the peak order period, and next spring and summer clothing has already started.

As the domestic market recovers and the foreign trade market gradually adapts to the COVID-19 epidemic, the demand for textiles has rebounded significantly, and the “cold winter” weather forecast has also made textile companies confident in stocking warm clothing at the end of the year. Traders have placed orders in advance, hoping to stock up as soon as possible while dyeing costs, raw materials, and gray fabric prices are at a low level. This is also a sign of optimism about the future market.

Improved downstream texturing and weaving start-up rates

After the National Day holiday, the operating rates of downstream texturing and weaving factories have increased significantly. Especially for texturing plants, in the early stage due to the orderly power consumption policy, the level was only about 30%. Since September, it has gradually increased. Currently, the comprehensive operating rate of texturing plants in Jiangsu and Zhejiang is at 71%. In terms of weaving, due to the colder weather, the sales of cashmere products have improved significantly, and the operating rate of circular knitting machines in Xiaoshao and Changshu has also rebounded significantly. The original operating rate in Xiaoshao area was less than 40%, which has now increased to about 90%; Changshu has also increased from the original 60% to about 80%.

Regardless of whether the market situation has truly improved significantly, at least the production enthusiasm of downstream factories has increased, and confidence in the next market situation has been greatly restored. It can be said that confidence is more valuable than gold. Boss Bu’s positive attitude may have played a great role in boosting the news, and has played a role that cannot be underestimated in rectifying the industrial chain.

Raw materials have increased, but what about the profits from gray fabrics?

However, I learned from the cloth boss that although the raw materials have increased a lot, the price of gray cloth still maintains the original price, and some manufacturers even take this opportunity to promote sales. The increase in raw materials does give cloth owners an opportunity to increase prices, but it is really difficult to increase the price of gray cloths. The ideal is always beautiful, but the reality is that once the price increases, it means losing customers. When you raise prices, there will always be manufacturers that either don’t raise prices or offer promotions, and buyers are naturally more willing to choose lower-priced products.

Due to excessively high inventories, some conventional fabrics such as pongee and polyester taffeta have fallen into the vicious circle of “if you don’t throw them away, you can’t sell them.” Basically, you lose money based on how much you produce. Even though some factories have raised prices, the profit situation of these gray fabrics is still not optimistic.

Editorial

The price of raw materials has increased, which may be the right way to open the peak season. However, whether downstream demand can really pick up depends on factors such as “weather” and the international environment. The foreign epidemic situation is still serious, and there is even a second outbreak crisis. Although the current order-taking atmosphere is good in the foreign trade market, it cannot fully provide sufficient demand. Therefore, how long the current peak season can last is still unknown.
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This article is from the Internet, does not represent Composite Fabric,bonded Fabric,Lamination Fabric position, reproduced please specify the source.https://www.tradetextile.com/archives/19324

Author: clsrich

 
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