As the hot market that has continued since October has gradually begun to cool down, polyester filament prices have generally begun to decline recently, and the voice of the market starting to decline has reappeared.
Mr. Wang, the person in charge of a textile company that produces men’s clothing fabrics, said: The market situation in 2020 will continue. In October, we finally started to do business, and the inventory dropped from the highest level of 7 million meters to 3 million meters. I breathed a sigh of relief. But starting in November, new orders were no longer received, and inventory slowly accumulated to 4.5 million meters. At the end of November, if new orders do not come and old orders are completed, the factory plans to shut down 1/3 of the looms.
Mr. Wang’s plan is not unique. During the visit, there were many textile companies that showed willingness to reduce production in the future due to increased inventory.
As Boss Wang said, after entering November, the number of orders received by the market began to decline significantly. , and this is mainly due to the impact of overseas epidemics.
Kluge, director of the World Health Organization’s European Regional Office, held an online press conference here on the 19th and said that in the past 14 days, more than 80% of European countries have experienced a death rate per 100,000 residents. There are more than 100 new cases, and nearly one-third of European countries have more than 700 new cases per 100,000 inhabitants. During the same period, there were more than 29,000 new COVID-19 deaths in Europe, an increase of 18% month-on-month.
It is such a serious epidemic that has led some European countries to begin a second lockdown, and the epidemic in the United States should not be underestimated.
A textile foreign trader who specializes in European and American orders said that the orders he receives now are all small orders. In previous years, the large orders were from large supermarkets such as Wal-Mart, Carrefour, Costco, or ZARA, Only large brands like H&M place big orders. However, due to the impact of the epidemic, these supermarkets and brands that determine market trends have no intention of placing large orders at this stage, and even canceled some orders after the news of European city closures came out.
But in the current market, some textile companies are living very well and have constant orders. And why?
According to the editor’s understanding, the orders received by these companies are not to produce next year’s spring and summer fabrics as expected, but to prepare for next year’s autumn and winter fabrics in advance.
After all, according to the news circulating, the time for mass vaccination of the new crown vaccine will start at least next spring. Specifically, when most people have vaccine antibodies, it will be necessary to control the epidemic. It will take longer, so there is great uncertainty about market demand in next spring and summer, but in next autumn and winter, the possibility of demand improvement will greatly increase.
On the other hand, today’s polyester raw material prices are still at a historic low. Maybe they will not rise by next spring, but once the turning point appears, market demand will And with the help of polyester manufacturers, the price increase may exceed everyone’s expectations.
Under such circumstances, stocking up on next year’s autumn and winter fabrics is a relatively low-risk, high-yield matter.
Funds are under pressure, and textile companies are hindered from stocking up
Of course, There are still only a few companies placing off-season orders, and the order decline for most weaving companies is still very obvious. Under such circumstances, weaving companies are naturally not as active in purchasing polyester yarns as they were in early November.
Enterprises’ enthusiasm for buying silk has decreased, and the price of polyester filament has naturally begun to fall again, falling by about 200 yuan/ton in one week. Although the decrease is not large, considering that there have been many positive macroeconomic developments recently, the price reduction itself has already explained a lot of problems.
But on the other hand, it is almost the end of the year. According to the experience of previous years, now is the time to stock up on some raw materials. A previous survey showed that nearly 60% of textile people are optimistic about the spring and summer market next year, and nearly half of them still plan to stock up on raw materials.
However, we have also learned that for textile companies, the biggest problem with stocking raw materials is no other than insufficient funds caused by excessive inventory and difficulty in collecting receivables. But in this year’s global economic downturn, this problem is indeed difficult to avoid. </p
