“Cotton is roaring, polyester is barking, rayon is snickering, polyester is bouncing, nylon yarn is croaking, spandex is roaring, raw material costs are at a high fever, early quotations are invalid, and they have risen so much that we can’t even imagine, the market There is no regret medicine, yesterday’s quotation is invalid, and the prices are all messed up.” Recently, a joke has been widely circulated in the circle of friends of textile people. This wave of price increases will obviously continue after the year, and various raw materials are still rising.” “Happy” people, the situation of one price per day often occurs.
However, as the price of raw materials continues to rise, an unexpected scene has occurred in the fabric market.
Rising momentum of raw materials continues unabated
At present, the textile raw material market can be described as “rising”.
According to the China Keqiao Textile Index released on March 8, the polyester raw material price index has increased significantly since March. The mainstream PTA spot price in East China is 4470 yuan/ton to 4520 yuan/ton. An increase of about 750 yuan/ton to 795 yuan/ton from the beginning of February; the mainstream price of MEG is 6070 yuan/ton to 6110 yuan/ton, an increase of 1525 yuan/ton to 1567.5 yuan/ton from the beginning of February; the market quotation of polyester chips is rising day by day. , the cash or March acceptance price of semi-gloss slices in Jiangsu and Zhejiang is about 6,450 yuan/ton, an increase of about 1,375 yuan/ton from the beginning of February. The price of polyester filament in Xiaoshao area is rising day by day. The POY quotation is 7800 yuan/ton to 7855 yuan/ton, which is about 1955 yuan/ton to 2030 yuan/ton higher than that in early February. The FDY quotation is 8900 yuan/ton, which is higher than that in early February. The price is about 1,800 yuan/ton; the DTY quotation is 9,350 yuan/ton, which is about 1,500 yuan/ton higher than in early February. The market price of polyester filament has increased significantly compared with the beginning of February. Weaving enterprises have increased their stockings, polyester transactions have increased day by day, and prices have risen day by day.
The price of pure cotton yarn is rising again, and the price of rayon yarn is rising day by day. In early March, the market price of pure cotton yarn in Xiaoshao area increased significantly. The price of air-spun 10S pure cotton yarn was 14,325 yuan/ton to 14,375 yuan/ton, an increase of 1,225 yuan/ton to 1,275 yuan/ton from the beginning of February; carded 32S pure cotton yarn was priced at 14,325 yuan/ton to 14,375 yuan/ton. The price of cotton yarn is 25,780 yuan/ton ~ 25,850 yuan/ton, an increase of 2,630 yuan/ton ~ 2,700 yuan/ton from the beginning of February; the price of combed 40S pure cotton yarn is 29,530 yuan/ton ~ 29,600 yuan/ton, an increase of 3,080 yuan/ton from the beginning of February. Yuan/ton ~3150 yuan/ton.
The price of viscose staple fiber raw materials has also increased significantly. The actual central price of viscose staple fiber 1.5D×38mm mid-range is about 15,750 yuan/ton, which is an increase of 2,000 yuan/ton to about 2,050 yuan/ton from the beginning of February. The price of 1.5D viscose staple fiber has increased significantly. The market price of viscose staple fiber has increased day by day, and the quotations of manufacturers have increased significantly. The transaction volume of viscose staple fiber has increased day by day, and the transaction price has increased significantly. The price of rayon yarn has increased significantly. The price of 30S rayon yarn is about 19,600 yuan/ton, which is about 2,250 yuan/ton higher than that in early February. The price of 40S rayon yarn is about 20,800 yuan/ton, which is about 2,100 yuan/ton higher than that in early February.
Regarding the phenomenon of rising raw material prices, Liu Xingguo, a researcher at the China Enterprise Confederation and Director of the Enterprise Research Department, analyzed in an interview with relevant media that “there are many reasons for the rising prices of raw materials: First, demand-driven, due to domestic External demand has recovered strongly, and the demand for raw materials of Chinese enterprises has increased significantly, which has objectively driven up the price of raw materials. Second, the price rigidity factors have led to the rise in raw material prices, such as the rigid increase in labor prices. Third, the continued growth of CPI has led to the increase in the field of raw materials. The fourth is the increase in the price of upstream raw materials, which is transmitted to the middle and lower reaches, resulting in a corresponding increase in the price of midstream and downstream raw materials; the fifth is the rise in some raw materials due to the influence of following the trend and speculation.”
Liu Xingguo also said, “The rise in raw material prices manifests itself in four types: first, it rises due to changes in external factors; second, it rises due to price transmission; third, it rises following the trend; fourth, it rises due to speculation. Recent raw material prices There is almost a general increase, and the increase is relatively large; overall, various factors leading to the increase in raw material prices seem to be at work, and four types of price increases exist.”
Fabrics fell instead of rising
There is no doubt that the rise in raw materials has had a significant impact on small and medium-sized fabric companies, especially those companies that make low-end fabrics and have high inventories, and their bargaining power is weak. When raw materials rise, the price of gray fabrics does not dare to rise, but when raw materials fall, they frequently suffer from price cuts.
A relevant person in charge of a fabric company said helplessly: “We didn’t stock a lot of raw materials before the new year. Who would have thought that raw materials would go up like crazy at the beginning of the new year. The prices of the orders we received were all negotiated before. Yes, but now the raw materials have increased so crazily, we can only ask our customers to increase the price, but many customers do not accept it, and we have no choice. After all, we are old customers who have cooperated with us for many years, so we can only make some concessions on both sides. If the price of cloth increases by 0.5 yuan/meter, it can only increase by 0.3 yuan/meter for old customers.”
However, this may be considered an ideal trading situation. According to the China Keqiao Textile Index, with the sharp increase in raw material prices, the price of downstream fabrics has declined instead of rising. Relevant data shows that since the opening of the market, the sales of clothing fabrics in the fabric market of China Textile City have been rising day by day, and the new style fabric market has increased slightly. However, the transaction of mass fabrics is relatively insufficient, and the price and volume are still slightly lower than in early February. Orders for summer fabrics have dropped slightly compared with early February, and prices have dropped slightly. Among them, the transaction prices of pure cotton fabrics, polyester fabrics, polyester and nylon fabrics, viscose fabrics, viscose wool fabrics, and linen viscose fabrics fell in varying amounts.
The prices of home textile fabrics, which have been on the rise in 2020, also seem to be sluggish. The index shows that although the spot trading volume and order dispatch of innovative color and pattern fabrics haveThere was a slight month-on-month increase, but the transaction volume of popular fabrics was relatively insufficient, and the price and volume were still slightly lower than in early February. Among them, the spot transactions and order shipments of bedding products shrank month-on-month, and the price index showed a slight downward trend; the spot transactions and order shipments of window screens shrank month-on-month, and the price index showed a slight downward trend; the overall price index of home textile fabrics was driven up slightly. fell.
“In the past, the market has been accustomed to chasing price increases. Rising raw material prices will always stimulate the market to stock up to a certain extent, and the market will accept the increase in fabric and dyeing fees. However, recently, downstream customers have been quite concerned about the drastic changes in prices. They are all sensitive and only want the low-priced fabrics in stock from years ago. Now orders are not as strong as expected, and supply exceeds demand. It is not difficult to understand that fabric companies are chasing orders and prices are falling instead of rising. ” Some people in the industry analyzed it this way.
Liu Xingguo said, “The rise in raw material prices will have a direct impact on the production and operation of enterprises. Driven by profit motives, companies always hope to transmit the impact of rising raw material prices backwards. To users, but whether this idea can be realized depends on the company’s ability to control product prices.” Liu Xingguo further explained, “In the current market environment of overall oversupply, the product market is under great pressure to compete, and companies are raising prices. It is very difficult, which means that it is difficult for companies to pass on the adverse effects of rising raw material prices to users.”
Find the right way to resolve it
So, how do fabric companies resolve the pressure of this round of rising raw materials?
“Logically speaking, when the price of raw materials increases, product prices should be raised accordingly. However, there are many external constraints in business activities. The company will strengthen the control of various procurement costs and combine the company’s position in the industry. Accumulated experience, and continue to carry out cost reduction and efficiency improvement work, continue to promote refined production, technological transformation, etc. to save energy and reduce consumption. At the same time, strengthen cooperation with strategic suppliers, strengthen procurement control through the ‘peak and valley effect’ of prices, and actively resolve The supply security of raw materials and the risk of price increases.” Zhang Chunwei, the relevant person in charge of Jiangsu Hongming Textile Co., Ltd. told the China Textile News reporter.
Many companies have deployed countermeasures early on in response to rising costs. The “Smart Printing and Dyeing” industrial Internet platform jointly developed by Shaoxing Yingjili Printing and Dyeing Co., Ltd. and Beijing Digital Technology Co., Ltd. has reduced costs and increased efficiency through low-cost digital transformation, transforming the original empirical production management of printing and dyeing enterprises into a more scientific and intensive one. production mode. Wang Wenjun, general manager of the company, said: “Smart printing and dyeing can continuously optimize the process through accurate analysis and collection of data, improve the first-time pass rate of dyeing, save time, manpower, energy and other costs for enterprises, achieve energy conservation and emission reduction, and improve quality and efficiency.”
Liu Xingguo suggested, “To resolve the pressure of rising raw material prices, small and medium-sized enterprises need not only their own active actions, but also the government and financial institutions to provide assistance.” He further pointed out, “The main performance of enterprises themselves is There are three aspects: first, small and medium-sized enterprises themselves must find ways to tap the potential of internal cost savings and achieve cost savings as much as possible; second, start from a design perspective and look for alternative low-cost raw materials; third, explore and promote product upgrades to deepen processing. and high value to cope with the pressure of rising costs.”
Liu Xingguo also suggested that “the government and financial institutions will mainly provide assistance in four aspects: first, continue to launch new measures to reduce taxes and fees; In particular, it is necessary to launch structural tax and fee reduction measures for small and medium-sized enterprises; second, reduce the comprehensive financing costs of small and medium-sized enterprises, further expand the scale of inclusive loans, and expand the coverage of inclusive finance; third, adopt measures to stimulate effective market demand and stabilize the industrial chain. Policy measures in this regard, such as increasing government procurement for small and medium-sized enterprises, coordinating large enterprises in the industrial chain to appropriately provide profits to small and medium-sized enterprises; fourth, taking necessary market stabilization measures to intervene in unreasonable price increases in the raw material market.”</ p