With the epidemic under control, the resumption of work by enterprises in late February will be the new focus of governments at all levels. Many people in the market feel that the polyester industry chain has everything in place and only needs demand. At the same time, the terminal market also received good news of new orders and rising prices!
But the editor still has to remind the market: it is currently subject to the abnormal impact of the market’s production capacity , it can only be said to be a “tentative market”. The market is not as optimistic as you think!
Has the price of gray cloth increased in the market? Orders increased?
It is reported that the market in Wujiang has just resumed, and some gray fabrics have started to rise. After further understanding, most of the gray fabrics that have increased in price are ordered goods, which have higher quality requirements, so manufacturers do not have much inventory.
A trader in the Shengze area revealed: “Now many gray fabrics have gone up. The main reason is low production capacity. Basically, there are only cloths in stock from years ago. For easy-to-sell gray fabrics, such as imitation silk and T400 etc., many traders have the idea of hoarding goods, which has resulted in a situation where supply exceeds demand.”
At present, traders are more cautious in stocking up goods and will not stock up on a large scale, which has also led to the decline of weaving enterprises. Inventory has not dropped very significantly. Judging from last year’s experience, traders who stock up a lot of goods can only face the embarrassing situation of cloth lying in the warehouse during the off-season.
As for market products with low quality requirements, most manufacturers say they have no confidence to increase prices. “We have not raised prices, but we will not drop prices in the short term. Now we just want to reduce the inventory a little. The inventory a year ago reached as much as three months. Now if customers want it, we will ship it. We shipped 40,000 yuan yesterday Rice, 50,000 meters were shipped today, and reducing inventory is the first priority.” A pongee manufacturer said.
Coincidentally, a manufacturer specializing in peach skin velvet also said: “Recently, due to low production capacity, there are a lot of goods on the market, and many companies have taken the opportunity to sell a wave of inventory. But The market is ultimately determined by demand. The epidemic affects consumer demand. When production capacity increases in the later period, inventory pressure will reappear.”
The terminal has missed part of the spring clothing market, and the squeeze on spring clothing inventory will affect the later market
In late February, the terminal textile factory began to resume work, but due to Returning workers need to be quarantined for a certain period of time and related supporting facilities have yet to be restored. Zhongyu Information speculates that the start-up of textile factories will be slow to increase, and the textile market may not fully recover until the end of February to early March. The epidemic has caused the market to be closed for a long time during the Spring Festival, especially physical stores. As a result, clothing companies and dealers have missed part of the spring clothing market. The squeeze on spring clothing inventory will affect the capital turnover of companies in the later period.
Garment companies will start producing summer clothing from February to March. After missing the spring clothing market, clothing companies will face increased pressure on funds and spring clothing inventory, which will affect clothing companies’ purchase demand for summer clothing fabrics and is not conducive to the growth of textile factories. Gray fabrics are removed from inventory. Before the Spring Festival, the inventory of gray fabrics in Shengze area was at a high of about 40 days. As the number of new confirmed cases of the epidemic continues to decline, the market will gradually regain popularity, and the demand for the industrial chain will gradually begin to recover. However, it is expected that the textile and apparel market, which missed the spring clothing market, will be more than Previous years have been tougher.
As the epidemic spreads globally, trade may continue to be under pressure!
In addition, from Europe to the Americas, from the Far East to the Middle East, the epidemic has not become clearer with the improvement of China. Italy’s lockdown and 12 countries’ restrictions on entry to South Korea have greatly hindered The pace of global economic recovery. As the epidemic worsens outside of China, global trade may continue to be under pressure! With the outbreak of the epidemic in Japan, South Korea and Italy, China’s textile and apparel exports, which are the most active and largest foreign trade, will inevitably bear the brunt. The pressure on the textile and apparel market, which has resulted in missing the spring domestic trade market, continues to increase.
As for the market situation, we can actually get a glimpse of it from the production and sales of polyester filament. At the end of February, the average daily production and sales of polyester filament yarn were still around 20%-30%. The market was in a light state, lacking demand support, and polyester yarn inventory The price continues to rise, but major polyester manufacturers have limited promotional efforts. According to the post-holiday decline in raw materials, polyester prices are expected to fall if polyester stocks are to be destocked. It is speculated that polyester prices are likely to compensate for the decline in the later period.
The editor believes that polyester inventories will continue to rise in late February, waiting for demand to rebound to boost market confidence, and at the same time placing hope Major manufacturers cut production to support the market. The impact of the epidemic on the economy will gradually appear. You and I are all in this disaster. We hope that the epidemic will pass as soon as possible. </p
