Recently, crude oil, PTA, spandex and other raw materials have continued to rise, becoming the hottest hot spots in the market. Upstream prices have soared, how will the downstream market be affected?
As the off-season deepens, the number of orders received by enterprises has declined
The recent gray fabric weaving market has shown a lack of supply, and the polarization is still obvious. Some companies have received stable orders and have not declined due to the off-season. The number of orders received by some companies has significantly decreased, and there are not many orders on hand.
Weaving companies that specialize in regular fabrics such as four-way stretch and nylon are feeling the deepening of the off-season. Even though four-way stretch and nylon gray fabrics are the best-selling products in recent times, There has also been a decline. Mr. Shen of the company said: “Now we only have a few four-sided bomb orders on hand, which are export orders. Foreign trade is a little better now, but it is difficult to make orders. When we send out goods, customers always say how many meters they have. There is a shortage and it is too troublesome to ask for replenishment. It is not profitable at all.”
Manager Huang, the person in charge of an integrated industry and trade enterprise that produces polyester taffeta, pongee and other conventional products, said: “We mainly The orders for gall fabrics and other fabrics are divided into two parts. The fabric orders are obviously less, and there are only some small quantity reorders. The gall fabrics are very stable, and the order quantity will only increase. June to October is the period for gall fabrics. It’s the peak season for fabrics, so it won’t be bad recently.”
The operating rate of weaving manufacturers is still running at a high level
According to research, although the market has entered July In the off-season, many companies have also reported a decrease in orders, but the operating rates of water spray and air jet have not been affected. Most manufacturers are operating at full capacity. Except for some companies with limited production, they cannot operate at full capacity, but they are all Achieve the highest production availability rate. Therefore, according to the data monitoring of sample companies on Silkdu.com, the current water spray and air jet activation rate in Shengze area is around 65%.
Mr. Shen, a weaving company that specializes in conventional fabrics such as four-way stretch and nylon, said: “The current operating rate is full. The opening is almost the same as before. We will either stop production and take holidays, or fully open. The factory is on the periphery and is not affected by environmental protection.”
Manager Huang, a weaving company mainly engaged in polyester taffeta and pongee textiles, also said, Currently, the factory’s operating rate is 100%. Because the factory is in the central and western regions, there is no production limit, and it has been fully operational this year.
“Our factory has a production limit of 30%, so we can only operate at 70%. We can operate as much as we can, and we will not operate less. Even if there is no production limit, the machines will be fully operated.” Main Business The peach-skinned manager Wang said.
Some gray fabric inventories continue to rise, and there are plans to reduce production in the future
Judging from the operating rate, most manufacturers’ machines are running at full capacity. In fact, when the market situation is not particularly weak and there are no special circumstances, weaving manufacturers will not easily reduce production. However, in the traditional off-season every year, especially in July, which is the slowest month, some weaving companies still collectively reduce production in order to reduce inventory pressure.
Mr. Shen He said, “Currently there is more than 4 million meters of inventory in the factory, which is about the same as last year. It has not been digested. Therefore, there are plans to stop production later. The main reason is that the raw materials have increased too much and the production pressure in the factory is too high. We plan to work during the day Production will be suspended at night, just like last year.”
Mr. Wang said: “If the market becomes weaker and weaker in July, and we continue to limit production by 30% in the future, the production capacity will be more balanced, but if we do not limit production, we will probably only open 70%. %, so there won’t be too much inventory.”
Upstream raw materials have skyrocketed, but downstream companies have cut prices
The recent price increases for upstream raw materials have been a bit crazy, but it seems that the upstream has cooperated with The downstream derailed, and price increases became a unilateral matter for the upstream. The price increase of downstream gray fabrics does exist, but only a few manufacturers have raised prices. The vast majority of manufacturers still maintain stable prices, and some companies even reduce prices for certain specifications of gray fabrics.
Downstream is in the traditional off-season, and the demand must be weak. Although elastic fabrics are selling well, it cannot hide the downward trend of the overall market. With the increase in polyester filament, the cost pressure has not changed much for most manufacturers, especially since there are promotions every week, the purchase price is still relatively favorable, and currently it has little impact on the cost of gray fabrics. Coupled with the weakening downstream market and the phenomenon of accumulated inventory, weaving companies are more willing to choose to reduce profits and maintain low inventory than to increase inventory.
Therefore, Mr. Shen said: “It is estimated that there will be no more promotions for polyester yarn. A while ago, the raw material factory wanted to increase the price, but the business was not good, so they did not dare. Now it has increased, and there will be no price reduction in the future. Now. The price of gray fabric has not changed yet. It stands to reason that if spandex increases by 500 yuan, we will increase the price by a few cents. But if the price increases, customers will be lost, and we can only hold on with the previous price.”
Manager Ye, who specializes in four-way elastic, also said that although orders for four-way elastic have been good, spandex has also been increasing.Prices continue to rise, but the prices of our gray fabrics and raw materials have not moved. After all, it is the off-season now, so you can’t go up even if you want to. When the peak season comes later, the price of spandex will definitely rise, and there is still a high possibility that the price of four-way stretch will increase by then.
Mr. Huang revealed: “We have not raised the price of gray fabrics, and we have no intention to do so. The market has not raised prices, and we cannot increase them. Our price changes are still market-oriented. , follow the trend.”
The price increase of gray fabrics requires collective operation by weaving enterprises, and unilateral price increases are difficult to maintain for a long time. However, it is difficult to increase prices in the current market. In the final analysis, it is still a problem of supply and demand. The situation of oversupply has not been well solved. Entering the off-season, demand is even weaker and the problem of overcapacity is prominent.
Editor’s Note
It is the off-season, so it is normal for the market to be poor and orders to be reduced. It is unlikely that the market will reverse in July. At present, many companies have already felt that the off-season is deepening, and a turnaround is unlikely. However, the “Golden Nine and Silver Ten” are still very promising. The peak season performance in the first half of the year is acceptable. As the most important sales period of the year, the performance in the second half of the year is not expected to be too bad. <br
