Recently, the price of pork has skyrocketed and it has become a hot topic.
The National Bureau of Statistics website released data on August 10. In July 2020, the national consumer price increased by 2.7% year-on-year. The prices of food, tobacco and alcohol increased by 10.2% year-on-year, among which the price of pork increased by 85.7%.
Since September last year, the price of pork has been rising frequently, and marketing content about pork has continued to appear in various industries. The same is true in the textile market. The gimmicks of buying raw materials and buying gray cloth and giving pork as a gift are flooding the circle of friends. The reality behind these gimmicks is that only pork prices have increased, while chemical products and textile prices have fallen across the board, forming a sharp gap and reflecting the helplessness of the market.
Pork is a necessity of residents’ lives, and its price rise is one of the representatives of rising prices. Judging from the price growth rate, the consumer price of polyester filament in polyester factories is still relatively low.
Since mid-to-late July, the price of polyester filament from polyester manufacturers has increased for 20 days. As of now, the price of polyester filament FDY150D is 5,800 yuan. / ton, POY150D price is around 5,325 yuan / ton, DTY150D price is around 6,700 yuan / ton, both have increased to varying degrees compared with the previous period.
Although the price of polyester yarn has increased slightly, Compared with the low period in March and April, things are much better. This has also stimulated the purchasing enthusiasm in the downstream market to a certain extent. Coupled with the promotion efforts of polyester manufacturers from time to time, it has led to a wave of polyester manufacturers going out some time ago. Inventory, the current inventory growth rate has slowed down. But overall, compared with previous years, price levels are still low.
In the weaving market, it is even more difficult to keep up with the increase, especially in terms of gray fabric prices. Most products are no longer profitable. As can be seen from the table below, it is common for the price of conventional gray fabrics to drop by more than 30% compared with the same period last year, and some products have even dropped by more than 50%.
This phenomenon is caused by The main reasons are still overcapacity and lack of motivation for terminal apparel consumption.
Overcapacity
Since last year , the word “overcapacity” is hotly discussed in the market. Since 2017, environmental protection measures have been prevalent. 100,000 water-jet looms have been eliminated in Jiangsu and Zhejiang regions, but peripheral production capacity has exploded by 200,000 units. All of a sudden, the textile industry, which was already oversupplied, was further pushed into severe overcapacity. Last year, the trade friction between China and the United States intensified, making the disadvantage of overcapacity more obvious. When the epidemic broke out this year, orders in the weaving market suddenly shrunk severely, supply and demand were once again imbalanced, and the inventory of gray fabrics in the weaving market even reached a new high.
Lack of consumption power
Domestically, according to data from the National Bureau of Statistics, the prices residents spent on clothing fell by 0.5% year-on-year in July, and also fell by 0.5% month-on-month. As the country where the epidemic first broke out, China has controlled the epidemic very well. The country has basically resumed normal production and development. However, the epidemic has changed residents’ consumption habits and economic structure. The demand for clothing is not as high as before. So strong, coupled with the high inventory of clothing companies themselves, the demand for fabrics and gray fabrics by clothing companies has shrunk even more, causing the inventories of weaving manufacturers to continue to rise, and the prices of gray fabrics and fabrics continue to hover on the edge of losses.
Abroad, the epidemic in the United States has never eased. According to the latest statistics on the new crown epidemic released by Johns Hopkins University on the 12th, the cumulative number of cases in the United States has The number of confirmed cases has exceeded 5.3 million. And when the epidemic was not under obvious control, a serious influenza epidemic occurred in the United States, with more than 4,000 deaths in a single week. CNN pointed out that the cumulative number of confirmed cases of COVID-19 in the United States has reached a quarter of the total number of cases in the world, and the United States is also the country with the largest number of deaths from COVID-19 in the world. Microsoft co-founder Bill Gates has also spoken out several times, expressing disappointment with the U.S. epidemic prevention work and criticizing U.S. accounting monitoring as meaningless.
And now that Europe has entered the summer travel season, the epidemic has begun to rebound on a large scale. Some countries that seemed to have been “safe” have recently slipped into the abyss of the epidemic again! The newly confirmed cases in Spain, Germany, France, Belgium and other countries are allThere is an upward trend. Amid the severe resurgence of the epidemic in many countries, many countries have once again tightened restrictions and even entered “re-blockades.”
A salesperson in the market complained helplessly: “Our company’s main business is exporting to the Philippines. Now that the Philippines is closed due to the epidemic, all our orders have been suspended. We have been on vacation for more than ten days, and the boss asked us to go home and wait for news, but there is nothing we can do.”
Relying on strong crude oil prices and cost support, polyester yarn Prices have been rising for several days. Recently, those selling raw materials have been eating pork. However, looking at the overall situation, terminal clothing consumption is insufficient, which is a huge negative for fabrics, gray fabrics, and polyester filaments. It is basically impossible for any link in the industry chain to be immune.
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