The New Year atmosphere has not completely faded, but the textile people’s business is already in full swing! Since the fourth day of the Lunar New Year, many major chemical fiber raw material manufacturers have begun normal production and sales, shipping hundreds of trucks a day, and it is common for orders to be queued for several months; on the eighth day of the Lunar New Year, most weaving companies have also begun to open their doors, and The order situation is also satisfactory.
“Firstorderofthenewyear,60,000Rice240pongeeshipped…” A textile worker’s circle of friends revealed the harvest on the first day of work in the Year of the Ox. And it can be seen that not only some actual orders have been placed, but also many inquiries. Not just this textile company, many textile companies have made gains on the first day of the New Year.
Dyeingfactoryopeningtime
AlthoughthenationaltextilemarketisalmostshutdownduringtheSpringFestival,foreignmarketsThemarkethasnotbeensuspended,andtherearestillmanyquotationsandorders.Thisiswhymanycompaniesstartedbuyinggrayfabricsonthefirstday,butthereisstillaquestion.Thatis,mostprintinganddyeingfactorieshavenotstartedbecauseworkersfromotherplaceshavenotreturned.Whyaretextilecompaniessoeagertobuygrayfabrics?Afterall,theyhavenowheretoprocessthem.Infact,animportantreasonwhytradingcompaniesareeagertobuygrayfabricsonthefirstdayisthatthepriceofgrayfabricsisabouttorise.
Thepriceincreaseofgrayfabricshasbecomeacommonphenomenon
Inthepastfewdays,whatIhaveseenmostintextilepeople’scircleoffriends,apartfromNewYeargreetings,maybevariouspriceincreasesorpreparationsforpriceincreases.Notice.
ThepriceincreasesofvarioustextilecompaniesaregenerallyThepriceisabout0.1-0.2yuan/meter,buttherearealsopricesthatincreaseby1-1.5yuan/meter.IntheTaihuLakeShadeClothHomeTextilesChamberofCommerce,hundredsofcompanieshavejoinedtogethertoraiseprices,andtheroomforpriceincreasesfarexceedsthatofothertextilecompanies.However,becausetheoriginalpriceofblackoutclothisrelativelyhigh,usuallymorethantenortwentyyuanpermeter,theincreaseisnothugeintermsofprice.
However,intermsofthescaleofpriceincreases,morethanahundredcompanieshaveraisedthepricesofgrayfabricsatthesametime,whichalsoindicatesthatthegrayfabricmarkethasclimbedoutofthepricetroughin2020andhasbeguntobottomout.
Costdrivesgrayfabricpriceincreases
Fabricpriceincreasesareusuallyaffectedbycostordemandfactors.Althoughtheoverallperformanceofthetextilemarkethasbeengoodrecently,withvaryingdegreesofshipmentsatboththerawmaterialandweavingends,itisobviouslytooearlytosaythatthetextilepeakseasonishere.Ontheonehand,mostprintinganddyeingfactorieshavenotyetenteredproduction,andtheamountofdyeingfactoriesthatcanreflectthemarketsituationisnotyetclear;ontheotherhand,eveniftherearecurrentlymanyorders,theyarelikelytobethebacklogofordersbeforetheyear.AsfortheordersaftertheyearThemarketsituationisstillunclear.
Sothedemandsideisnotthedirectdriverofthisfabricpriceincrease,sotheonlythingleftisanincreaseincosts.Infact,itcanbeseenfromthepriceincreasenoticesofvarioustextilecompaniesthatmostcompanieshavementionedthattherecentsurgeinrawmaterialpriceshaspushedupcosts,andtextilecompanieshavenochoicebuttoraiseprices.
However,apartfromthedemandside,howlongcanthepriceincreasecausedbyrisingcostslast?
Crudeoildrivesriseinrawmaterials
TheincreaseinrawmaterialpricesismainlyduetothesharpincreaseinnationaloilpricesduringtheSpringFestival.TheriseininternationaloilpricesismainlyduetotheunprecedentedArcticcoldwaveonFebruary15,whichcausedthetemperaturetoplummetinmostpartsoftheUnitedStatesandplungedtheenergymarketintochaos.Large-scalerollingblackoutsoccurredincitiessuchasDallasandHouston,andthesurgeinheatingdemandpushedthepowergridtoitslimit.SubzerotemperaturesintheMidlandregionofTexashavereducedU.S.shalegasproductionby1millionbarrelsperday,pushingoilpricestoanewhighinnearly13months.U.S.oilhasexceeded$60perbarrel.Thecoldweathermayalsotriggerademandforfuel.Inpanicbuying,heatingoilfuturesrosemorethan2%andnaturalgasrosemorethan3%.
Theriseintextilerawmaterialsaftertheholidayisacomplementaryincreaseafterthesharpriseincrudeoil.However,thecoldwaveintheUnitedStateswilleventuallypass,andoilpriceswilllackthepowertosurge.Itisalsodifficulttohaveasustainedpromotioneffectonourtextilerawmaterials,andrawmaterialpriceswilleventuallyreturntostability.Moreover,manycompaniesinthefabricmarketstillhavealotofinventoryoflastyear’slow-pricedrawmaterialsforsale,aswellasthelarge-scalesalesofthepreviousyear.�Thelow-pricedrawmaterialspurchasedarestocked,sotherewilldefinitelybemanycompanieseagertodigestinventoryandnotfollowthetrendtoincreaseprices.
Amidvarious”rising” voices , we also need to be calm. After all, before the market improves substantially, price increases will only result in price but no market. At the same time, companies that maintain the original price may make the market competition more intense.
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