On July 4, the Taihu Lake Shade Cloth and Home Textile Chamber of Commerce in Siyang County issued a price increase notice: Stimulated by the recent rebound in international oil prices, chemical fiber raw materials have been on the rise. The cost of downstream weaving enterprises continues to rise, profits have been squeezed repeatedly, and they are already in a state of loss… Finally, it is recommended that all members increase their prices by 0.5-1 yuan/meter depending on the weight of the fabric.
The textile market has attracted the most attention recently. The price of raw materials has increased, and polyester, spandex, nylon… have frequently appeared on the hot list of textile price increases. On the contrary, news of fabric price increases rarely appears. However, the price increase notice from the Siyang Huan Taihu Shade Cloth Home Textile Chamber of Commerce can be said to clearly tell us that the final result of the continuous increase in raw material prices must be an increase in fabric prices.
Raw material price increases continue
In the recent period, the frequency of raw material price increases has been the same as at the beginning of the year. The kind of “one day rises” is indistinguishable. From late June to now, in less than half a month, the price of raw materials has been raised about 6 times. On July 5, the price of polyester filament increased again on the first day of this week. The price increase was generally around 100-200 yuan/ton. Nylon FDY, DTY, and POY increased by 400-500 yuan/ton, and spandex generally increased by 1,000-2,000 yuan/ton. Yuan / ton.
The highest price of raw materials this year appeared in early March , FDY150D is 8,200 yuan/ton, DTY150D is 8,030 yuan/ton, and FDY150D is 9,500 yuan/ton. In the price increase process after the Spring Festival, the prices of raw materials and fabrics have skyrocketed. The Siyang County Taihu Shade Cloth Home Textile Chamber of Commerce has even raised prices twice within a week.
Subsequently, due to the poor textile market and weak market during the peak season, the price of raw materials started a weekly promotion mode in April, and the price of polyester yarn also gradually dropped. After three months of decline, the price of polyester filament reached its lowest value in the near future on June 9. Although June and July are the off-season for textiles, it does not affect the increase in raw material prices at all. Driven by international oil prices and upstream polyester raw material prices, polyester yarn prices have rebounded significantly, and prices are gradually approaching the highest value during the year. The increase in July is still continuing, and perhaps there is no need to wait until the peak textile season for the price of raw materials to hit another peak.
But the price will eventually have to be recognized by the market to be effective, otherwise it will be “price but no market”, which will be harmful to all aspects of textile manufacturing. So does the grouping of blackout cloth companies to raise prices mean that the time for fabric price increases has arrived?
It is still difficult to increase the price of fabrics
The raw material market has been hot recently, and the performance of the fabric market Pingping, an important reason is that the price of raw materials has been reduced for 10 times in the early stage. Most textile companies will choose to purchase raw materials during promotions, and generally textile companies purchase raw materials for more than 30 days at a time. Therefore, most weaving companies are still using low-price raw materials in the early stage. After the price increase, there is still a certain time lag before the raw materials enter the production process and are sold through fabrics.
On the other hand, and the most important point is that the sales situation of fabrics is not optimistic. The peak season market in the first half of this year is not as good as in previous years, and fabric orders are higher in the off-season. The performance is poor. Except for some autumn and winter fabrics that are selling well, other products are difficult to sell. Without orders, weaving companies lack the courage to raise prices no matter how high the cost is. “The price of raw materials has increased recently, but we don’t have any orders and dare not raise the price with our old customers for fear that the customers will run away,” said a person in charge of a weaving company.
The lack of orders is the biggest obstacle to fabric price increases. In other words, if there are orders, price increases will be a matter of course. Indeed, although the price of raw materials for the recently popular nylon and four-way stretch fabrics has risen repeatedly, the fabrics have also risen. Taking 380T nylon spinning as an example, the price in the early stage has increased from 2.9 yuan/meter to 3.4 yuan/meter; the conventional 100D four-sided elastic has also increased from 2.6 yuan/meter to 3.1 yuan/meter.
The reason why the blackout cloth mentioned above dares to “blatantly” increase its price is inseparable from its own market situation. According to statistics, the international home textile market demand continues to be strong, and the export of our home textile products to major international markets continues to grow, with the highest growth rate in exports to the US market. From January to May, my country’s home textile products exported US$12.62 billion, an increase of 60.4% over the same period last year and an increase of 21.8% over the same period in 2019. The export scale hit a record high for the same period in the past five years. At the same time, the export of home textile products accounted for 11.2% of the total exports of textile and apparel products, 43 percentage points higher than the overall export growth rate of textile and apparel products.
The price increase of raw materials continues, but the price increase of fabrics will also be subject to the current textile market, but as As the off-season ends, fabrics will eventually rebound sharply and keep up with the pace of raw materials. Therefore, the current fabric order quotation cannot only be based on the current price, but must also take into account the fabric price of the order placed in one or two months.
</p
