At the end of 2019, the bosses of the textile trade were caught in a dilemma: on the one hand, there was a notice of increase in the upstream raw material polyester yarn; on the other hand, the downstream dyeing factory’s setting machine limit Notice of maternity and holidays!
The text of the first-stage economic and trade agreement has been agreed upon; PTA internal prices have been in a stable and rising situation; ethylene glycol futures have risen strongly again, reaching a new high; polyester filament has risen by 400 yuan/ton in a week…
It can be said that the textile market, which had been dormant for a long time, suddenly burst into flames, and the confidence of textile people was boosted. The atmosphere for goods in the downstream weaving trade market has eased, but it is accompanied by news of rising prices for gray fabrics and difficulties in order shipments.
01
The wait-and-see clothing dealer finally placed an order
Now it is the annual stocking up stage, but due to the sluggish market this year, There is insufficient atmosphere for stocking up, and the quantity has dropped significantly. Many fabric merchants have a wait-and-see mentality and are cautious about stocking up.
Clothing merchants also have a strong wait-and-see mentality and have not placed orders for most of this year. Weaving manufacturers have a “buy up, not buy down” mentality when it comes to purchasing raw materials, and clothing merchants also have this mentality. Therefore, after the price of raw materials increased, some clothing manufacturers couldn’t help but start placing orders.
The owner of an integrated industry and trade company that specializes in Oxford cloth said: “There were not many orders a while ago and it was relatively deserted, but recently customers have placed a wave of orders, and they are all custom-woven. products, so now the order on hand has been scheduled until March next year.”
However, it was too late to place the order at this time. Not only did the price of gray fabrics rise, but the printing and dyeing factories were also crowded, and the dyeing delivery time was extended. But the bigger problem was still behind…
02
Gray fabrics have seen a long-awaited rise
At the end of the year, the long-awaited fabric orders finally arrived, but unfortunately, the price of gray fabrics has increased, and the previous quotation does not count and needs to be re-quoted!
Good news came out in the raw material market, which brought about a sharp increase in polyester filament, with an increase of 400 yuan/ton within a week. As soon as this news came out, some fabric bosses in the downstream weaving market issued a notice to adjust the price of gray fabrics.
Although the price of gray cloth this year can be said to be at a low level in recent years, profits are also at a low level, so the price of raw materials has increased slightly. , there are cloth bosses who cannot withstand the cost pressure and can only make price adjustments. A weaving boss who specializes in conventional market goods said: “The raw materials increased a lot last week, and the price of gray fabrics has also dropped a lot this year. In addition, the market is not very good, and there is really no profit. The raw materials have increased so much, and it is unbearable.” Yes, it won’t work without a price increase!”
03
Printing and dyeing factories have limited production and shipments will be delayed
On the 17th, some printing and dyeing factories in the Shengze area received notices to limit the production of styling machines by 50%, and then some printing and dyeing factories received notices to rotate production. As soon as the two news came out, it immediately caused great difficulties for printing and dyeing factories to ship goods. Since the holiday is early this year, most printing and dyeing factories will be on holiday before January 10th. Fabric manufacturers were already busy shipping goods before the year, and the limited production and rotation will suddenly extend the delivery time. Whether the order can be successfully completed unknown.
A salesman from a trading company said : “I was very busy a while ago and didn’t have any orders in hand. I finally received two orders in the past few days and started to loosen up. But when the printing and dyeing factory restricted production, how could we deliver the goods? I’m worried if I don’t have an order, and I’m even more worried if I have an order. !”
This situation seems to be common in 2017, when the market was booming and delivery was also a problem. Although Boss Bu is now worried about the order delivery date, he actually sends a signal to Boss Bu that the market is improving.
04
Some fabric merchants have stopped taking orders
Most of the orders placed by clothing merchants at this time were not completed years ago. Therefore, some fabric merchants have stopped accepting orders. Fabric merchants will deliver orders after the year. Some merchants said that although there are not many orders on hand now, and there have been almost no orders since the beginning of December, due to the production restrictions of printing and dyeing factories, it may be difficult to deliver orders if there are orders, so it is better to stop accepting orders directly. The orders we are receiving now are due to the fact that migrant workers go home early to celebrate the 15th day of the twelfth lunar month and come out to work after the Lantern Festival, and the printing, dyeing, coating and other post-processing supporting manufacturers are on holiday, so the delivery time is also longer than usual.
Editor’s Note
This year’s textile market generally has a holiday earlier than in previous years. Unexpectedly, printing and dyeing factories caught up with environmental protection production restrictions at the end of the year, forcing the entire industry chain to further advance their holidays. Some unfinished and unplaced orders will be moved to the end of the year. Therefore, the editor speculates that the market may usher in a wave of “small climax” after the end of next year.
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