According to the practice of previous years, market orders will be issued one after another in late August, paving the way for the arrival of the “Golden Nine”. However, compared with the fiery 2020, this year’s textile market seems a bit deserted, whether it is polyester raw materials , or weaving companies, all seem to have become “Buddhist”.
The market has been on a steep decline since August this year! I just hope fabric orders will be better in September! “, this is the inner voice of a textile entrepreneur that the editor has contacted. There may be an improvement after September. After all, no matter how slow the peak season is, it is still the peak season, and the demand will increase compared to August. But right now In a sensitive season without sensitive and good news, the textile industry is having an extremely embarrassing time!
The profitability of polyester filament companies has soared
Leading chemical fiber companies have had great success
In recent years, the chemical fiber industry, especially large listed companies, have made good use of the complete The production layout and precise price strategy have firmly grasped the pricing power of prices, achieving doubling of profits and doubling of output.
Since August, listed companies have entered a period of intensive disclosure of interim reports, and textile and chemical fiber Several major private polyester leaders in the industry have also released interim reports. Judging from the data disclosed in the interim reports, the six polyester giants, Tongkun, Xinfengming, Rongsheng, Hengli, Hengyi and Shenghong, have all achieved Profitability, and the specific figures are extremely “dazzling”.
Polyester filament is the largest and most widely used variety among textile chemical fiber raw materials. China produces more than 5,000 filaments every year. Thousands of tons of chemical fibers, of which polyester filament accounts for the largest proportion. Recently, the China Textile and Apparel Industry Federation held a mid-year economic operation analysis meeting. At the meeting, Chen Xiaoqian, an analyst at the China Textile Federation Industrial Economics Research Institute, analyzed the profits of the textile industry in the first half of 2021 Total structure, it pointed out that the total profit of the textile industry in the first half of the year was 107.89 billion yuan, of which the total profit of the chemical fiber industry was 32.66 billion yuan, accounting for 30.3%, ranking first among all industries.
Six The mid-term report data of the big polyester giant also indirectly echoes the conclusion of the above statistical analysis.
Unprofitable sales and lack of orders make weaving companies miserable
What is different from the prosperous situation of leading chemical fiber companies is the bleak situation of downstream companies.
The primary cost of textile production is the price of various raw materials. Supported by the recovery of the downstream market after the Spring Festival, the prices of various raw materials rose rapidly, creating the highest price so far, although the price of polyester yarn began to gradually fall. However, the rally resumed at the end of June and was once close to the highest price this year at the end of July.
However, this wave of gains is only caused by the rising cost of upstream crude oil. The downstream textile market is still struggling in the off-season, which cannot provide strong support for this wave of prices. The market is not prosperous in the peak season, and without the support of orders, it will be difficult to achieve an increase in synchronization with raw materials. In particular, unprofitable sales and environmental pressure on small weaving factories are increasing day by day, and their current operations are at a break-even point.
From the perspective of demand, this year, the second major outbreak of overseas epidemic has still had a great impact on the domestic textile industry. Under the epidemic, the reduction in overseas clothing demand and the lack of foreign trade orders have made the gray fabric weaving market seem a lot deserted. Especially in some areas with severe epidemics, even if there is demand for clothing fabrics, due to city closures and other reasons, domestic exports to the local areas cannot be made, and orders cannot be accepted. In addition, due to the impact of the epidemic, the shipping market has been severely distorted. The original shipping freight from China to the United States has increased nearly five times, reaching nearly 20,000 yuan. Based on such a high price, major shipping companies plan to increase shipping costs in September and October. Fees continue to rise, and now that the global vaccination rate is gradually increasing and the epidemic is gradually easing, this chaotic phenomenon has not only not eased but has become more serious. The shipping charges for some foreign orders are even higher than the cost of the product. This makes foreign trade companies miserable.
Although August was in the off-season in the past, all kinds of sample searches and proofing were endless. , making early preparations for the upcoming peak season, but the market seems relatively quiet this year. A person in charge of a textile store in the market said that there have been very few people looking for samples in the market recently. They have no source of new customers, and the few orders they have made are from old customers for many years. The European and American markets, which are in the midst of the epidemic, are hard-pressed by city closures and production suspensions to devote more energy to textile production. Without proofing and setting out in the early stage, it will be difficult to place substantive orders later.
On the one hand, the profits of the upstream chemical fiber industry have increased sharply and there is endless money, and on the other hand, the downstream enterprises are struggling to support but cannot drive prices and cannot get orders. In the long run, this situation continues , the mismatch between upstream and downstream may bring considerable hidden dangers at the end of the year. I believe that after September, the “peak season” will finally show its original appearance. I hope that the spring of the textile industry will come as soon as possible to temporarily alleviate this abnormal embarrassment. ! </p
