In June, the off-season atmosphere has deepened, and the market has entered a “backwater” situation. It lacks the support of bright products and the market transaction performance is poor. Especially for conventional products, weaving manufacturers’ gray fabric inventories have reached high levels in recent years.
The inventory days of gray fabrics in sample weaving enterprises in Shengze area have risen again since 5.25, and are currently 43.5 days, which is The highest level in the same period in previous years, and June-July is the traditional off-season, so gray fabric inventory is still expected to continue to accumulate. The trading volume of China Textile City continued to be light in the other days except for the Dragon Boat Festival when the trading volume increased to 9.6 million meters.
And weaving companies seem to be unable to survive. The operating rate of looms in Jiangsu and Zhejiang dropped sharply by 6% to 62% during the Dragon Boat Festival holiday, which was the lowest level in the same period in previous years. . The comprehensive texturing operating rate increased slightly by 1% to 80%, which was the second highest level in the same period in previous years.
“I didn’t place a few orders this month. They were all market goods worth 10,000 to 20,000 meters. I was very fortunate to have a lot of inventory before last year. We sold it at a low price in the early stage, but now we are selling it at a greater loss,” said a trader who specializes in brushed pongee.
The person in charge of another company with more than 200 looms in northern Jiangsu, specializing in imitation silk, said: “Our main customer is the United States. This year due to the epidemic and trade war, Due to factors such as other factors, our orders have shrunk by at least 50%. Now we are in the inventory stage every day. The warehouse has also stocked nearly 10 million meters of gray fabrics, which is very stressful. We have a three-day holiday during the Dragon Boat Festival, and then we will take a closer look. One step away!”
The textile industry that is still swaying in the wind and rain can be said to be blocked in front and pursued by soldiers behind. Environmental protection, trade wars, and epidemics are all “black swans” that will slow down the market’s recovery. Today’s market conditions have prompted more textile bosses to take a holiday, which also proves that it is becoming increasingly difficult for manufacturers to operate.
The sudden drop in weaving starts and the accumulation of new high inventories directly contributed to the decline in both volume and price of polyester filament
The holiday mentality of textile bosses has directly caused the volume and price of polyester filament to fall. Since June, the rise in international crude oil has driven up the price of polyester raw materials, thus stimulating the rise in polyester filament prices. But in recent days, polyester prices have begun to fall again. Looking at the first half of this year, polyester prices are still declining overall, with prices of various products falling by about 20% compared to the beginning of the year. Compared with the same period last year, it is even more terrible. Specifically, FDY products dropped by nearly 28% compared with the same period last year, POY products dropped by more than 30% compared with the same period last year, and DTY products also dropped by about 26% compared with the same period last year.
According to the experience of previous years, the rise in polyester prices can drive the shipment of some gray fabrics, but now the price of polyester itself is at a low level and cannot rise even if it rises. , the benefits to the gray cloth end are even more indescribable.
In terms of production and sales, generally speaking, manufacturers will stock up more or less goods before the holiday. However, before this Dragon Boat Festival holiday, manufacturers are not very enthusiastic about replenishing goods. Except for the strong sales of POY products driven by the promotion of polyester manufacturers, the production and sales of other products performed generally. The production and sales exceeded 100 for only one day, which can even be described as “barely”.
Recently, except for POY, which has been slightly destocked from 0.2 days to 15.5 days, the rest of the polyester filament continues to accumulate – FDY stocks have slightly accumulated from 0.6 days to 18 days, DTY inventory accumulated significantly from 2.1 days to 26.3 days. Polyester staple fiber has been in stock for three consecutive weeks and is currently in stock for 3 days. The inventory of polyester bottle flakes remains above the level of the previous two weeks for 15 days. The inventory of polyester staple fiber remains at the lowest level for the same period in the past; the inventory of polyester filament has rebounded to the highest level for the same period in the past; the inventory of polyester bottle flakes is the second highest level for the same period in the past.
From the current point of view, the textile peak season in the first half of the year has basically passed. In July, there may only be sporadic transactions and large volumes due to the mentality of stocking up, and upward pressure on prices. Larger, the demand side has not improved significantly yet, foreign orders are still facing the risk of recurrence of the epidemic, and shipments are relatively limited. Therefore, it is expected that in the off-season market from July to August, if downstream demand does not improve significantly, polyester filament may maintain a weak operating situation. In the future, companies may adopt a strategy of reducing production to protect prices. With the support of raw materials, prices will be difficult to bottom out again. occur. </p
