Recently, the entire textile industry chain has slowly become unstable again. In May, the Jiangsu and Zhejiang weaving markets are experiencing high costs and poor orders!
Polyester for “covering the plate” Factory: Crude oil has given a boost, and polyester filament prices have risen by nearly 1,000 per month
Recently, there have been news of price increases in the raw material market:
The economies of many countries are gradually recovering, and U.S. oil has risen for the fifth consecutive day, hitting a two-month high for three consecutive days. Brent oil once stood at $36. The bullish forces in the market counterattacked, and crude oil prices rose sharply, which gave a shot in the arm to the raw material market that had been falling. The prices of bulk textile raw materials, including PTA and ethylene glycol, have been rising, and polyester filament manufacturers have also started to rise, ending many days of decline. At the same time, the long-awaited “closure” of polyester factories has reappeared.
According to data, as of the 21st, the current mainstream quotations for POY 100D/36F are between 5,700-5,800 yuan/ton, and the mainstream quotations for FDY75D/36F are between 6,600-6,700 yuan/ton. Among them, the mainstream price of DTY75D/36F is between 8400-8600 yuan/ton.
At the end of April, the mainstream quotations for POY100D/36F were between 5300-5400 yuan/ton, the mainstream quotations for FDY75D/36F were between 6000-6100 yuan/ton, and the mainstream quotations for DTY 75D were between 6000-6100 yuan/ton. The mainstream quotation price for /36F is between 8200-8400 yuan/ton.
“Sensitive” weavers will show up again: they will raise prices by 0.5-1 yuan/meter!
How long has it been since you textile people saw a price increase notice? It’s been a long time, so long that many of us have forgotten what a price increase notice looks like. You must know that in the past, various price increase notices from dyeing factories, weaving factories, dye factories, raw material factories, etc. were sent out in turn every year. Especially during the peak season, the prices would change every day, and there was no time to issue notices.
On the 21st, a notice of gray fabric price increase suddenly appeared in the circle of friends, allowing all of us textile people to “review” what the price increase notice looks like. The general meaning of the notice is that because raw material prices continue to rise, it is recommended that all member companies increase the price of gray fabrics by 0.5-1 yuan/meter. This increase is not small. After all, the profits of many gray cloth merchants are only a few cents, or even only a few cents.
The Taihu Lake Shade Cloth Home Textile Chamber of Commerce, as a large downstream weaving chamber of commerce, is said to have nearly two hundred companies settled in it, and In recent years, it has been very sensitive to raw material prices. In fact, this is not the first time the chamber of commerce has taken joint action against raw material price increases. According to incomplete statistics, in just two years, the chamber of commerce has jointly raised prices more than five times.
Although weaving manufacturers are also trying their best to squeeze in the wave of price increases, but will they really do so?
Every textile person who understands the “price increase notice” knows that various reasons such as rising raw material prices, rising labor costs, rising rents, etc. are generally excuses. The real reason for daring to increase prices is usually that there are too many orders, market supply is less than demand, and manufacturers have full say in prices. But is that really the case?
Let’s take a look at the last time when raw materials surged and downstream weaving companies had to boycott:
At the end of August 2018 , the chamber of commerce also suspended production and holidays to “prevent market price chaos.”
It can be said that at that time, these companies felt like they were ready to die. , but what about the effect? As you can imagine, it’s very small!
According to market research, there were many orders for polyester taffeta, imitation silk, and nylon spinning on the market a while ago, but they were completed in less than half a month. Dissipates quickly. Especially with the gradual arrival of summer, the off-season atmosphere seems to be getting stronger and stronger! “Two weeks ago, we had 2 million meters of polyester taffeta in hand. Because it was a finished product, the profit was still good, about 0.5 yuan/meter, but now suddenly there are no orders,” said a trader. . Polyester taffeta has been very popular recently because it has something to do with anti-epidemic supplies, but the epidemic is not over yet, and the peak season of polyester taffeta is gradually coming to an end.
Of course, there are more than these. Although orders for seasonal fabrics such as imitation silk and nylon have been hit hard by the epidemic, fortunately, after the domestic epidemic is controlled, they are still snatched up in the cracks. Get part of the order. Printing and dyeing factories were once flooded with orders for sun protection clothing, summer women’s clothing, etc., but now there is no sign of hot sales.
Judging from the orders in the hands of traders, the market seems to be not only showing no signs of improvement, but is heading towards a worse situation. As the only way to get orders for various fabrics, the printing and dyeing factory always reflects the situation of the trade market. However, at present, the printing and dyeing factory still has no orders.The workers in the dyeing factory also had nothing to do. Although most factories are already on rotation and there are not many workers on duty, even these few workers seem a bit redundant in the dyeing factory. It is very common for twos and threes to get together and chat. Although there are a lot of gray fabrics piled up outside the factory, many of them are orders canceled halfway by customers.
Weaving companies under great pressure: Business becomes increasingly difficult to do !
As the source of the entire textile industry, raw material factories have the first say, and the recent historical low prices have boosted the willingness of polyester factories to increase prices. Crude oil , PTA, MEG and other raw materials, as soon as there is any disturbance, the price increase momentum will appear immediately.
It is no longer realistic to expect raw material manufacturers to lower prices to control costs. Although today’s weaving companies have increased orders compared with before, prices have not increased. Some off-season fabric inventories are not available. The rise turned down. With such a large-scale price increase of raw materials, the downstream companies were forced to raise prices even as they were complaining. In order to change this situation, the leading group, the Shade Fabric Weaving Association, was the first to jointly raise prices. Although the weaving industry has overcapacity It seems even more difficult for the industry to raise prices when the market situation is not clear. However, in order to maintain a good cycle in the overall textile market, price increases for downstream fabrics are particularly important at this stage.
In addition to understanding the market conditions as soon as possible, the top priority for weaving enterprises is to maintain no loss of gray fabrics, so that the market can operate healthily. This is the outcome that everyone hopes to see.
The prices of raw materials are rising, and buyers are lowering prices. Weaving manufacturers are really under great pressure! Business is hard to do, but do it and cherish it! </p
