Recently, the editor’s circle of friends has been full of price increase orders!
At the G20 China-US Presidential Meeting held last Saturday (June 29), after 80 minutes of consultations, Trump Trump said he would not impose new tariffs on Chinese goods “for the time being”! This good news has undoubtedly injected a “shot in the arm” into the textile market!
No, on the first day of July, PTA felt like it was on a helicopter. The main futures contract once hit the daily limit, setting a new high since April 17!
Polyester yarn has also started to rise! Polyester yarn from a major major factory in Tongxiang has increased by 200-300 yuan/ton over the weekend; polyester yarn from a major factory in Jiangsu has increased by 100-300 yuan/ton today; FDY from Wujiang Xinmin has increased by 200-300 yuan/ton since the weekend; POY from a factory in Xiaoshan has increased by 200-300 yuan/ton since the weekend; Recently it has increased by 150 yuan/ton!
Raw materials have risen so sharply that cloth bosses can no longer sit still and collectively voiced: They can’t bear it anymore! It’s time for our fabrics to increase too!
Behind the price increase is full of helplessness: the increase is the cost!
“Now that raw materials have risen sharply, the impact on us is still relatively large. Before, gray fabrics could not be sold and had been falling. Now they have begun to rise slightly, up by 0.05-0.1 yuan/meter. Now our factory The inventory of gray fabrics is still quite high, and the main thing is to reduce the inventory.” said a nylon spinning manufacturer in Shengze area. Generally speaking, the cost of raw materials has increased by 1,500-3,000 yuan/ton, and the price and cost of gray fabric has increased by 0.1-0.3 yuan/meter. This extra cost can only be absorbed by the manufacturers themselves.
However, some manufacturers also said that although the market has improved in recent times, it is difficult for a clever woman to make a meal without rice. Now there are basically no orders on hand, but the inventory has been increasing. “We have 60 weaving machines in the factory. The machine has not been shipped out of the warehouse in the past three weeks, and the inventory is 900,000 meters. We also want to increase the price, but if the orders don’t come in, we can’t increase the price.” A manufacturer of imitation memory said helplessly.
At present, many small-scale weaving factories in the downstream do not have the confidence to increase prices, mainly due to high inventory and orders. not much.
The raw material market is hot, which drives the sales of gray fabrics, but the inventory is still high!
This wave of price increases in upstream raw materials can more or less drive orders in the downstream weaving market. Traders who are on the sidelines have also taken action, mainly because the price of gray fabrics is now at a low level. It’s a good opportunity to buy the dip. According to data monitored by China Silk City Network, the current inventory of gray fabrics at weaving manufacturers in Shengze is about 41 days, and the market inventory has dropped compared with the previous period.
A trader in Shengze area said: “The overall market environment this year is not good, and we have not stocked up. Basically, we have Orders are made as soon as possible, and now the orders can basically be completed by the end of July.” According to the situation in previous years, traders will prepare more goods in July and August to welcome the “Golden Nine and Silver Ten”, but textile people are not prepared for the “Golden Nine and Silver Ten” in the second half of this year. Not optimistic, there are not many stocks in the market. At this time, the price of raw materials is rising, and the G20 summit has released good news. Weaving manufacturers also want to take the opportunity to get rid of more inventory. Some traders who are ready to move take advantage of the low price to stock up. Therefore, During this period, the spot delivery situation in the market was better than in the previous period, and the phenomenon of selling goods was also reduced. But overall, the inventory of gray fabrics is still at a high level.
Whether the market can pick up depends on downstream demand
Now, the United States has stated that it will no longer impose new tariffs on Chinese exports. The trade war has been eased, and textile foreign traders have also With a sigh of relief, orders from the United States may be placed one after another. As some analysts said, Southeast Asia is just a “transit station” and most of the orders from the United States will still return to China.
Many textile people are now worried about what the market will be like in the second half of this year. Now that orders have improved, is it due to stockpiling by traders or because orders have been placed? “The key is to look at the end demand. Only when the demand rises and inventory drops, will the market really pick up! Only then can fabric prices rise!” said a cloth boss who has been deeply involved in the textile industry for more than ten years.
At present, the textile market has entered a relatively delicate period. Whether the market can really pick up depends on the demand of terminal garment factories. Textile people need to think calmly and do not operate blindly and optimistically!
Afterword
At the same time, we cannot ignore the production capacity of peripheral looms. Due to the cold market conditions in the early stage, many peripheral loomsEveryone is in a state of half-operation and half-stop, and the startup rate is not high. But now that orders have slightly improved, these externally expanded production capacities are bound to be put back into production! We all know that weaving factories in other places are generally large in scale, with hundreds or even thousands of machines. Once everything is fully opened, the market supply is bound to increase dramatically! Moreover, the cost of gray fabrics from other places is relatively low. Under the pressure of oversupply, low-price competition is about to break out! Many cloth bosses are forced to join the “price war”.
Today is the second day of July, and we have truly entered the second half of 2019. They say, “May all the regrets in the first half of the year be the foreshadowing of surprises in the second half of the year!” The editor also included this sentence To the textile people, I hope that with this wave of good news, the market will improve, and I hope that all fabric bosses will be able to reap surprises in the second half of the year!
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