The textile market has had ups and downs in 2020. At the end of 2020, many market participants have discovered that from many aspects, the textile market is entering a “life and death test” “Bureau.
Polyester filament prices have been rising for four consecutive consecutive years
Recently, under the positive influence of rising international oil prices and good news about vaccines, polyester filament yarns have been rising for four consecutive consecutive years. rise!
On the 11th, international oil prices rose sharply overnight. Brent broke through the US$50 mark again after more than 9 months, and the price of polyester filament increased by 50-100 yuan/ton;
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On the 14th, driven by the sharp rise in the main futures of PTA and MEG, the price of polyester filament rose again;
On the 15th, polyester raw materials rose strongly , the cost side has good support, polyester filament generally rose by 50-150 yuan/ton;
On the 18th, overnight oil prices continued to rise, polymerization cost support was strong, and polyester filament generally rose by 50 yuan/ton; -150 yuan/ton;
Recent updates in the circle of friends of a salesperson from a mainstream chemical fiber factory
Although polyester has rebounded slightly since December due to support from the cost side, the upstream benefits are outweighed by the drag on sluggish demand, and the market will continue to be weak at the end of the year.
Orders dropped sharply, and textile factories went on holiday early
The two-level polarization in the textile market this year has become more obvious, and companies that have done well have made a lot of money. There are many companies, but there are very few such companies. Most companies have experienced reduced orders and declining profits this year. Many people hope that the fabric of cold-proof clothing can move when the temperature drops! Although the temperature has dropped now, the fabrics of cold-proof clothing still have not improved much.
Some companies have even gone on holiday in advance because of the sudden drop in orders and the inability to maintain normal production at the factory! The holiday period is: December 1, 2019 to March 1, 2020, a full 3 months. It can be said to be the longest vacation!
Whether it is other regions or the surrounding areas of Jiangsu and Zhejiang, the textile market is indescribable. Since last year, crazy production capacity expansion, production capacity transfer, and blind production have resulted in huge overcapacity this year. It is difficult for weaving manufacturers to balance production and sales, and the textile market has suddenly gone downhill.
Coupled with the ups and downs of the foreign trade environment, it is difficult to have direct benefits. The textile market lacks upward momentum, and companies are more or less under financial pressure. In addition to the blind expansion of the companies themselves, the difficulty in receiving orders also puts companies under great pressure.
According to other industry media reports, the owner of a weaving factory in Nantong area plans to take a holiday in December. The specific date has not been determined yet and will be determined based on the market situation. But no matter what day it is, I can’t help but sigh, it’s so early to have a holiday! Although there is currently no talk of a holiday in the market, there are many fabric bosses planning to have a holiday in December. Previously, some media in the industry conducted a small survey. The results showed that there were more companies taking holidays in early January, but there were also many companies taking holidays in December. In addition, compared with last year, most manufacturers took a holiday about 15 days before the Spring Festival, but this year some companies have already advanced their holiday plans to about 30 days.
“Emission reduction and power rationing” is a hot search topic. Many processing plants across the country are running out of power!
Recently, many regions in Hunan, Zhejiang and Jiangxi have experienced restrictions on electricity consumption that have not been seen for many years.
According to the 10 local companies in Yiwu City, they have different reactions to the situation of “restricted electricity use”:
A small commodity production and processing company in Yiwu The person in charge of the factory said that their production line is currently running three times and stopping one day, but the problem is not big, “because we have our own generator.” Another person in charge of a clothing factory said that in accordance with relevant requirements, their factory is open Stopping for four days a day, “all the production lines are disconnected. There is no way, the workers can’t bear it, so they might as well go home early to celebrate the New Year.”
Why are there power cuts in many places? Expert: It is mainly related to the sudden drop in temperature. In the south, electricity is mostly used for heating.
Xu Qinhua, director of the International Energy Strategy Research Center of Renmin University of China, believes that the main reason is the sudden drop in temperature, and the degree of cooling is greater than in previous years. For electric heating, “the power grid can’t supply it at once.”
On December 11 this year, the Central Meteorological Observatory issued the first cold wave blue warning this winter, and 17 provinces and municipalities have welcomed the cold wave. Here comes the “cliff” cooling down.
Image according to China Weather Network
In fact, as early as the National Day holiday, a strong cold air swept across the central and eastern regions of my country, running from central and western Inner Mongolia through the middle reaches of the Yangtze River through southern my country. Affected by this, many regions “unlocked” the winter scene mode early
The 2021 logistics shutdown is imminent, so please do it early if you need to ship!
As the new year is approaching, textile factories all over the country will concentrate on stocking up. Logistics is a link that cannot be ignored. Due to the special circumstances this year, the extremely cold weather, and the impact of the epidemic, some companies have received orders. The local government has informed that employees will be gradually sent home in advance in January. By then, manufacturers will be under greater pressure to deliver goods, and it will take longer to get the goods in time.
There are already manufacturers for this purpose. An announcement was issued: Due to the impact of weather and sequelae of the epidemic in 2021, and at the same time the country calls on the logistics industry to suspend operations in advance and the holiday time is announced, it will put a lot of pressure on the factory’s production in January, and even cause an impact on customers who need to prepare for payment later. .
In addition, after receiving notification from relevant national departments, starting from New Year’s Day, overloaded transportation on highways will be strictly inspected, and overloaded highways are prohibited! Products that could be transported once now need to be transported twice. Not only Logistics truck freight prices will rise, and the key is that logistics trucks will also become extremely busy.
The Spring Festival is approaching, and for many textile and garment companies, year-end stocking is also a relatively important decision. From the perspective of market conditions, combined with many current factors, the situation of rising prices and shortages is unstoppable. However, we need to be cautious when stocking up at the end of the year. After all, in the face of unstable market conditions, other factors that may affect the market may appear later.
Although 2020 will be a bumpy road with ups and downs, textile bosses don’t have to worry too much. With a series of positive benefits such as vaccines, I believe that next year’s textile market can still usher in “gold, three, silver and four” !
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