Now that the Chinese New Year is getting closer, textile companies have basically finished their work for the year. In the upcoming Year of the Rat, what factors may “stir up the situation” and become the key to affecting the textile market in 2020?
Keywords: Sino-US trade
In 2019, Sino-US trade frictions caused great harm to textile companies. However, at the beginning of 2020, things seem to have a solution. Good start. On January 15, China and the United States signed the first phase of the economic and trade agreement, and tariff reduction was officially put on the agenda.
What we can see is that this economic and trade agreement mainly involves the 15% tariff on US$300 billion levied in September last year, which will affect textile companies. It has an impact, but it’s not fundamental. This economic and trade agreement is just the beginning. It is foreseeable that in 2020, China and the United States will resume their game over the imposition of additional tariffs.
Moreover, the Sino-US trade friction is not only related to exports to the United States. The exports of some Southeast Asian countries will also be restricted due to the principle of origin. Many textile companies themselves do not have Exports to the United States, but the final sales place of the processed products is the United States.
Therefore, for textile companies, after 2020, the relationship between Sino-US trade will still be an unavoidable hurdle, and regarding Sino-US trade Relationship news will also cause waves of movement.
Keywords: recycled fabrics
The market is not good in 2019, pongee, polyester taffeta, etc. Traditional “bad cloth” has “revealed its original shape” due to excess production capacity and shrinking demand. Nylon silk and imitation silk have also fallen into the dilemma of falling volume and price. If you want to ask what fabric comes out in 2019 and is favored by almost all textile people, then recycled fabrics are undoubtedly the answer.
In 2019, recycled fabrics that were once a niche product seemed to appear in front of everyone overnight, and quickly attracted people’s attention. At major textile fabrics exhibitions, if you don’t have a few recycled PET fabrics that you can get your hands on, you will be embarrassed to say hello to others.
At the Shanghai Exhibition in September last year, a cloth boss gave the editor an example. Due to the continuous transformation and upgrading of machines, half of their company’s The machine can produce recycled fabrics, while the other half of the machines can only produce conventional simulated silk. As a result, orders for recycled fabrics have been received in 2020, and the inventory of conventional simulated silk is as high as 2 million meters.
Now, recycled fabrics have developed into a new blue ocean, and more and more textile companies have begun to expand the production capacity of recycled fabrics. It is foreseeable that by 2020, the market for recycled fabrics will further ferment, but on the other hand, competition will also quietly begin, and Wangbu bosses have been prepared for it.
Keywords: destocking
If we ask what is the biggest pressure on textile companies in 2019, many textile companies will say that inventory is too high.
Excessive inventory has led to the accumulation of funds in weaving companies and tight cash flow, triggering a series of chain reactions, such as dumping and dumping goods, which were rare scenes in previous years. It has turned into a “routine operation”, which has also caused the price of gray fabrics to plummet. The price of gray fabrics for pongee, polyester taffeta and other products has dropped by more than 40% compared with 2018.
It is definitely not possible to have such a high inventory of gray fabrics. No matter how large the weaving company is, if it carries so much inventory, even if there is no problem with funds, the warehouse will not be able to pile it up. .
Therefore, destocking must be the top priority for most textile companies in mid-2020. Judging from what we know so far, some weaving companies have chosen to start operations after the first month of the year to control production capacity. This is probably an impossible method.
Keywords: Raw material price increase
In 2019, not only the textile market was not good, but the polyester market was also “surprising”. PX, the “culprit” for the skyrocketing increase in polyester raw materials in 2018, has lost its former glory, and the biggest hope now is to lose less; PTA, which had the highest spot price in 2018, even exceeding 10,000, is no longer good, and is “trembling” at around 5,000 points. ; The polyester filament that once “raised prices as soon as a meeting started” no longer has the domineering power it once had. Now let alone the price continuing to rise sharply, it is already good if it does not fall back after the increase.
But we must also see that today’s polyester production capacity has begun to move towards several major industries.��The giants are constantly concentrated, and they do not want to see low profits or even losses. If the market can pick up slightly, the price of polyester raw materials is very likely to rise again. But this is not entirely a bad thing for textile companies. At least the mountains of inventory in the warehouse are more valuable.
It is the combination of such and such events, This has created such a “weird” market situation in 2019. The editor feels that some of these problems will also have an impact on the market in 2020, so I briefly describe them. Of course, these are the editor’s personal opinions and are for reference only. It would be the best thing if it can provide some help to textile people when judging the market in the new year.
</p
