Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News The raw material market is hot, but the weaving end has insufficient stamina. In the environment of “hot at the top and cold at the bottom”, can the cloth boss’s fabrics continue to rise?

The raw material market is hot, but the weaving end has insufficient stamina. In the environment of “hot at the top and cold at the bottom”, can the cloth boss’s fabrics continue to rise?



In the past few months, driven by crude oil, the polyester industry chain has finally experienced a long-awaited boom. The production and sales of polyester factories have exceeded 100% one after another, and t…

In the past few months, driven by crude oil, the polyester industry chain has finally experienced a long-awaited boom. The production and sales of polyester factories have exceeded 100% one after another, and the production and sales of some factories have even reached more than 200%! Many manufacturers believe that polyester factories have exceeded 100%. The upward channel of silk has been formed, and companies with urgent needs have already carried out replenishment and stocking operations. This has also driven up polyester prices. From the beginning of May to now, some specifications of polyester yarn have increased by nearly a thousand yuan.

However, as polyester prices rise, downstream weavers do not dare to easily increase fabric prices. As a result, weaving manufacturers Faced with cost.


The market is hot at the top and cold at the bottom, weaving companies Faced with cost
Under the influence of the epidemic this year, textile companies have lacked orders, manufacturers lack bargaining power, and prices have been falling. Many textile bosses even sold at a loss in order to destock and withdraw funds. This has led to price chaos in the entire market, and the price of gray fabrics has dropped to the lowest price in recent years: the price of 75D chiffon was 2.2 yuan/meter, compared with 2.8 yuan/meter in the same period last year. It fell by 21.4%. The price of 210T polyester taffeta was 0.9 yuan/meter, compared with 1.2-1.3 yuan/meter in the same period last year. It fell by about 25%.
The raw materials have increased, but the price of cloth has been at a low level in recent years. Faced with this “unequal” market situation, which is hot at the top and cold at the bottom, cloth bosses can’t sit still and collectively speak out: the price of raw materials continues to rise, resulting in the production cost of gray cloth If it is too high, you will lose money!

So, can the fabric rise along with the raw materials as the cloth boss wishes? Let us analyze it from the aspects of terminal orders, weaving manufacturers’ operating rate, inventory, etc.

The operating rate and inventory are better than the previous period, but the inventory is still at a high level

First, let’s take a look at the downstream order situation. Since May, the market has There have been obvious changes, and cloth bosses generally reported that domestic sales orders have begun to increase, but foreign trade orders are still very few. Although the overall situation is not ideal, it is already greatly improved compared with March and April. Affected by this, the current operating rate of looms in Shengze is around 75%, which is slightly higher than the previous period.

Judging from the inventory situation of weaving companies, it has declined compared with the previous period, but it still remains at a high of about 41 days.

It seems that the current problem of oversupply in the market is still very serious, and gray fabric manufacturers are under great pressure to destock. As a cloth boss said: “Now that there is a slightly hot-selling product on the market, everyone will rush to make it. After ten days and a half, the popularity will subside. If you continue to make this product, Then we will face a situation of overcapacity again.” Just like the previously popular protective clothing fabrics polyester taffeta and pongee, their popularity has slowly come down, and the popularity of SPH has only lasted for about a week. Next, with the deepening of the high temperature season in June, July and August, the start-up of weaving manufacturers is very likely to decline again, and there is also the risk that inventories will continue to rise.
It is difficult for foreign trade to improve, and domestic sales are not strong enough

Judging from the situation of terminal orders, Sino-US trade relations have once again fallen into an embarrassing situation. After the ban, the Huafu subsidiary of the world’s largest color textile company was included in the entity list! Simply put, the “Entity List” is a “blacklist”. Once on this list, it will actually deprive relevant companies of trade opportunities in the United States.

Sino-U.S. relations have been changing repeatedly, which affects the market mentality. Manufacturers dare not take orders from the U.S. rashly. “We used to deal with the U.S. market. Last year, we were forced to cancel due to the Sino-U.S. trade war. We placed an order for 500,000 meters because we couldn’t agree on the price. This year, all U.S. orders were suspended, so we switched to Russian and domestic sales orders. Next, even if the U.S. resumes placing orders, we will still selectively accept orders. Last year We have learned enough lessons,” a trader said helplessly.

In addition to the United States, although countries in Europe, Southeast Asia and other countries have lifted their lockdown, it will take some time for clothing consumption demand to return. This has resulted in not many manufacturers receiving orders and the improvement is limited.

Domestic trade orders improved significantly in early May, and the trendAfter the visit, I found that some of the fabrics Boss Bu has recently received are spring and summer fabrics, but some are autumn and winter fabrics, which means that some garment factories have begun to produce autumn and winter clothing and have overdrawn orders for September and October in advance.

And judging from relevant data, under the epidemic, consumer income has generally fallen sharply, and the inhibitory effect of mortgage and car loans on textile and clothing consumption has become increasingly obvious. From January to April, domestic sales of my country’s textile and apparel industry fell by 29%. In April, there was still an 18% decline. Terminal demand has not improved significantly, and the domestic market will also become weak as the off-season deepens.

Editor’s Note

In general, the current downstream orders It has not improved significantly, and the inventory of weaving manufacturers is still at a high level. In addition, international crude oil fell on the 22nd, and the cost side of polyester yarns has insufficient support, and the positive support is limited. Even if hundreds of companies join together to raise prices, it will be difficult for fabric prices to follow the increase. Moreover, as the off-season atmosphere of the market deepens, it is estimated that many textile bosses will choose to reduce production in July and August to relieve their own pressure! At present, cloth bosses can only hope that September and October in the second half of the year will bring a wave of substantial orders. </p

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/21504

Author: clsrich

 
Back to top
Home
News
Product
Application
Search