On the first day of the new year, chemical fiber raw materials have had a good start, starting the price increase mode across the board:
Since February, polyester filament has continued to rise, benefiting from the cost support of crude oil, PX, PTA, and ethylene glycol.
Weaving companies have no choice but to increase prices
For this wave of raw materials The price increase made cloth bosses feel very conflicted. One cloth boss said with emotion: “I feel worried when prices rise, but also worry when prices fall…”
No, on the first day of work, the cloth boss had already issued a price increase notice: due to the shortage of raw materials during this period before The rising momentum is fierce. Starting from today, the price of cloth will be increased by about 1 cent per meter.
Another person in charge of industry and trade also revealed: “Although we did not start work during the Chinese New Year period, foreign customers did not miss the Spring Festival. The quotations during this period have increased. Last year, in order to reduce inventory, Prices have been kept very low. Now that the epidemic has been basically controlled, demand is slowly recovering. You can take advantage of this wave of raw materials to increase a little. Specifically, it depends on the gram weight. The price of low gram weight will increase by 5 points, and the price of high gram weight will increase by 5 points. An increase of about 1 cent.”
Some cloth bosses said: “The orders executed after the start of construction were basically received before the year, and the prices have been negotiated. I can only digest the increase in raw materials myself.”
With the rise in raw materials in February, it is indeed “making things worse” for cloth bosses who originally had low profit margins! Especially for some fabrics with heavier weight, the harm caused by rising raw materials will be greater.
Due to the epidemic last year, customers frequently lowered prices, and the prices of some conventional fabrics fell to the bottom. During this period, the price of raw materials has continued to rise, which has caused many weaving companies with micro-profits to be overwhelmed by costs and issue price increase notices.
The city market has low production capacity and busy production. The delivery period may be extended after the dyeing factory resumes work
Currently, most of the employees who have returned from other places have not yet returned to work, so the overall market production capacity is low. According to a weaving boss, “We officially started work on the ninth day of the Lunar New Year. Currently, only some local workers and workers who have not returned to their hometowns can come to work. It is estimated that by the end of February and the beginning of March, basically all will be back, and the production capacity will be restored to 8 Cheng or above.”
Another trader also said: “During the Chinese New Year, many foreign customers came to inquire about prices, and some placed orders directly. We basically don’t have to worry about the order volume in the next month.”
As for dyeing factories, due to the early return of workers a year ago, the dyeing factories also had to take holidays early. , according to a dyeing factory salesperson: “There is still a backlog of orders before the holidays. In addition, new orders will be issued after the new year, and the delivery time will be limited by the actual arrival time of workers. The estimated dyeing delivery time It will slow down.”
Based on the estimated delivery time of about 10 days before the year, the delivery time after the new year will be more than 10 days, and some with complex processes will be more than 15 days. Therefore, cloth bosses who have tight delivery deadlines after the new year need to make arrangements in advance to avoid missing the delivery date!
Postscript
Judging from a series of factors, this year’s “Golden Three” peak season may be promising, but for most fabric manufacturers, huge inventories that are difficult to digest in the short term are still an important factor hindering fabric price increases. According to data monitored by China Silk Capital Network, weaving inventory in Jiangsu and Zhejiang remains at about 41 days. Especially manufacturers that produce conventional fabrics often have two or three months of inventory. Ultimately, the reason is that the products are too single and not attractive enough. In today’s textile market, we must take the initiative and make our products bigger and stronger in order to seize the opportunity before it arrives!
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