Recently, a proposal to increase the price of gray fabrics suddenly appeared in the circle of friends. The general meaning of the proposal is that because raw material prices continue to rise, all member companies are proposed to 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.
At the same time, the editor discovered that in fact, the prices of gray fabrics sold in the circle of friends have already “secretly” increased. .
The price increase of gray fabrics ≠ the increase in orders, and textile companies have been “slapped into the shadows” again!
From the end of March to April, the price of raw materials plummeted to the bottom, and some specifications even fell below the price of 5,000. In the context of weak demand, gray fabric prices were sold at low prices. Some products with large social inventories have even fallen to the edge of profit and loss: 75D chiffon fell to 2.20 yuan/meter; 190T polyester taffeta fell to 0.70 yuan/meter…
Enter 4 In late March, as the concept of chemical fiber protective clothing fabrics heated up, large orders emerged in the market, which led to an increase in raw material prices. For a time, the price of FDY rose by thousands of yuan. Although polyester taffeta and polyester polyester polyester polyester polyester polyester polyester polyester polyester polyester polyester taffeta also increased to varying degrees, the increase was Far less than the rise in raw materials.
History is always surprisingly similar. With the rise in raw materials in May, it is indeed “making things worse” for cloth bosses who originally had low profit margins! Especially for fabrics with heavier weights such as blackout cloth and Oxford cloth, the profit erosion caused by the increase in raw materials will be greater. “We recently received a large order of 4 million meters. Going to the factory to get raw materials has already increased, but we have already signed the contract. The original profit was only a few cents, but it was all eaten up by the raw materials!” When the raw materials increased, , a cloth boss replied.
It is understood that although the domestic demand market is recovering, many textile bosses still say that there are not many orders on hand, or even no orders, and the orders are all at those quotations The price is so low that it exceeds the market price in the hands of a textile boss. “We still haven’t received orders. From March to now, the order volume has been very few. Although the domestic demand market is picking up, after all, recovery takes time, and it still cannot be compared with the previous order volume. If there are no orders yet, , we may consider continuing to reduce production or suspend production.” A textile boss said helplessly. According to data monitoring, as of May 23, the operating rate of corporate looms has rebounded to 75%. Although it has increased compared with the previous period, it shows that the market has indeed improved, but May can be said to be a good month compared to previous years. The market is still in a fair stage, but the current operating rate is slightly lower than the off-season in previous years. There are still many textile bosses who are relying on reducing operating rates and production to maintain normal operation of their factories. At the same time, the pace of ordering for both domestic and foreign trade is far from enough to consume the current inventory of enterprises, and the contradiction between oversupply and demand in the market will be difficult to subside in the short term.
A trader told the editor: “Two weeks ago, we had 2 million meters of polyester taffeta in hand, and the profit from the finished product was still OK, about 0.5 About RMB/meter, but now suddenly there are no orders.” Fabrics that were in season in previous years have been “relegated to the sidelines” this year, and the previously popular anti-epidemic fabrics have slowly declined as the epidemic has been gradually controlled.
The drop in raw material orders is enough to prove the lack of orders for various types of clothing. The editor originally thought that the order volume for sun protection clothing, summer women’s clothing, etc. should have returned to normal, but after learning from many aspects, it is completely There is no “hot” look to it. Many bosses complained to the editor that the backlog of orders caused by the suspension of production due to the epidemic broke out, and the factory’s production capacity once reached 100%. However, it has been less than 50% for a long time. In the past few months, it has dropped to less than 30%. There were originally 6 machines, but now only one has been opened. The factory has no orders, the workers have no jobs, and some workers are not optimistic about the market. , directly returned to his hometown to find another way out.
It seems that the reason for the increase in the price of gray fabrics has little to do with the increase or decrease in orders. It is simply because of the increase in the price of upstream raw materials. What’s more, the current inventory of gray fabrics on the market is very high, and many are selling goods at a loss. Perhaps a price increase can alleviate the current pressure on gray fabric factories.
With impulsive upstream and blocked downstream, the polyester market may frequently ride a “roller coaster”!
The current global epidemic is still at its peak. On the demand side, except for some epidemic-related products that are hot, other traditional demands have not improved. However, the current market has gradually raised concerns about the future. The good expectations are mainly based on the partial lifting of overseas blockades and OPEC+ production cuts. Looking at the polyester market, polyester production and sales have increased intermittently since the Qingming Festival, and polyester inventories have dropped significantly.
However, as polyester is being destocked, actual demand is still blocked. On the one hand, terminal texturing and the overall operation of looms were not high in April, and the raw material inventory for stocking was low; on the other hand, the demand for finished products, whether domestic trade or export, in textile and clothing has still dropped significantly year-on-year (masks, etc.) The demand for physical supplies has a relatively limited impact on the demand for polyester). According to data released by the General Administration of Customs, the export volume of textiles and clothing from January to April this year.
In the first quarter, textile and apparel exports fell sharply year-on-year, mainly due to the impact of the new coronavirus epidemic. In March, Europe and the United States widely canceled or postponed clothing orders, which had a greater impact on apparel exports than textiles. From January to April, the cumulative export value of textiles and clothing and clothing was still lower than that of the same period last year, and the cumulative export value of clothing fell further compared with the first quarter, but the cumulative export value of textiles increased year-on-year. This is mainly due to the sharp increase in exports of anti-epidemic supplies in textiles in April, which drove the increase in overall textile exports; while clothing exports continued to decline further due to the impact of the epidemic.
Although some overseas countries are gradually unblocking in May, foreign trade orders may increase. The export situation of textiles and clothing in the second quarter is expected to be better than that in the first quarter, but consumption may Affected by the income from March to April, the actual recovery ability may be limited. In addition, May to July is the traditional off-season for domestic and foreign demand. Even if demand improves marginally due to the easing of the epidemic, the short-term improvement may be limited. In the medium to long term, if the global epidemic gradually eases in the second half of the year and crude oil supply and demand are expected to improve, the textile industry may still have some expectations in the peak season of the Golden Nine and Silver Ten. </p
