On the evening of April 22, the Bank of China’s official website released news, explaining the situation of the Crude Oil Treasure business that has attracted much attention. When talking about the processing of the May contract of WTI crude oil futures, the Bank of China emphasized that the previous suspension of trading did not affect the rights and interests of customers. The main participants will still refer to the price of -37.63 US dollars for settlement. The bank has completed the expiration processing of the May contract in accordance with the agreement. .
In other words, users who purchased multiple orders from Bank of China Crude Oil Treasure not only lost their principal, but also owed the bank a lot of money. Some people joked that this was not only cutting leeks, but also pulling out all the roots.
Let’s not talk about whether Bank of China has any responsibility or whether the disposal is reasonable. Today, when the epidemic continues to rage, a large number of people have no understanding of futures investment. People do not invest money in industries they understand, but instead put it into high-risk crude oil futures, which in itself represents a lot of things.
No demand + no orders = production reduction and holiday
The global epidemic is intensifying and the number of infections continues to increase. According to data released by Johns Hopkins University in the United States, as of 9:31 on the 24th, Beijing time, there were 2,707,356 confirmed cases and 190,743 deaths worldwide. The number of confirmed cases in the United States rose to 868,395.
Under the impact of the new coronavirus epidemic, global demand has suffered a huge blow. As a traditional manufacturing industry, textiles have always been “walking on two legs” of domestic trade and foreign trade.
In the foreign trade market, because the United States, Italy, France and other European and American countries as China’s main exporters are still in the outbreak period of the epidemic, demand has shrunk sharply. Affected by this, starting from March, the number of textile foreign trade exports began to shrink sharply, and order cancellations and cancellations were common.
In the domestic trade market, although the domestic epidemic situation is relatively well controlled, occasional cases still make most people afraid to go to crowded areas for consumption. On the other hand, because raw material prices continue to fall, reaching new lows, traders lack confidence in the future market and have no intention of stocking up, resulting in domestic trade being as slow as foreign trade.
Therefore, under the double blow of insufficient demand in both domestic and foreign trade, orders in the textile market have shrunk sharply, and a large number of The cloth of the weaving enterprise becomes inventory as soon as it is woven, and the inventory of gray cloth continues to accumulate.
According to data monitoring from China Silk City Network, as of April 23, the inventory of gray fabrics in weaving enterprises in Jiangsu and Zhejiang regions has reached a high of 44 days, exceeding last year’s highest of 43 days.
Boss Wang, the head of an Oxford cloth weaving company, said: Their gray cloth inventory is now as high as 2 million meters, which is close to a month. Production, although only one-third of the looms are currently stopped, but if the inventory continues to accumulate, the operating rate will drop to half by May Day. Once the warehouse can no longer stock the gray fabric, production will be suspended for the holidays. And it’s not just their factory, most weaving companies now operate this way.
This can be clearly seen from the loom startup rate. According to data monitoring from China Silk City Network, the loom startup rate has dropped to about 67% in recent times.
The current market is like this. There is no demand from terminals, traders cannot receive orders, and weaving companies cannot sell cloth. , there is a tendency to become a pool of stagnant water, and the more this happens, the easier it is for people to become hot-headed.
Want to make quick money? Not that easy!
Since the outbreak of the epidemic, many people have come up with the idea of meltblown fabrics and non-woven fabrics. WeChat groups and Moments are full of similar news, which is very popular. It’s beyond people’s expectations.
Many people saw business opportunities, bought mask machines, and jumped into this industry, thinking of making quick money. However, masks are a new industry, and there are all difficulties that need to be overcome in terms of machinery, raw materials, processes, characteristics, etc. Various certificates and certification procedures are also required. Especially recently, the country’s requirements for the export of anti-epidemic supplies have increased and become more difficult. In the face of so many difficulties, it is impossible for everyone to pass smoothly.
However, because most of the new mask machines are outside the industry, and the shortage of spray cloth makes mask factories rely on “Friends Circle” model��Purchase, the superimposed release of purchasing power has kept the relatively tight spray cloth at 300,000-500,000 yuan; on the other hand, due to the sharp increase in mask production capacity, the price has also fallen rapidly, and the price of ordinary disposable masks has dropped from the epidemic. The highest price during the epidemic was 5 yuan/piece, which has dropped to nearly 1.2 yuan/piece today.
After repeated attempts, it is still unknown whether the switch to mask production will ultimately make money or lose money.
In addition to investing in melt-blown cloth and mask industries, due to the recent low price of polyester filament, some parts of the market People have some thoughts of “buying the bottom”. When crude oil prices rebounded in early April due to the news of production cuts, in addition to weaving companies taking the opportunity to restock, many traders also chose to take action, preparing to make a profit from the price difference.
However, after a month of decline, polyester prices have almost fallen back to their original point. If the epidemic situation does not improve, there is still the possibility of subsequent declines.
The editor personally feels that the current market situation contains great risks. If you want to make quick money by buying the bottom at this time, there is still a high possibility that you will end up halfway up the mountain, and it is very likely that it will eventually become Become a “taker”.
Editor’s Note
It is well known that the recent poor textile market situation, orders have almost stagnated. Some cloth bosses chose to switch to the circle of anti-epidemic supplies, and even more radically chose to invest money in commodities such as crude oil, gold, and silver futures. Everyone has different choices, and there is nothing wrong with that.
However, the editor here would like to remind textile people that before investing money in areas that they do not understand, they must fully understand the risks involved and exercise restraint. Even if you can’t make money due to your own impulse, you should try not to let yourself become a “leek”. </p
