Recently, all textile bosses have been frightened by the news of various holidays and production suspensions. The current market is really “very different” from last year. The market storm has swept through every textile enterprise. No one can “escape from bad luck”.
Looking back on the first half of this year, the entire textile market is in a state of “boiling a frog in warm water”. The textile market is ushering in an explosion in gray fabric production capacity. The most important thing is that since 2017, Jiangsu and Zhejiang have strict environmental protection policies. Water-jet looms have been shut down in large areas, and all substandard water-jet looms have been eliminated. At the same time, a large number of factories began to be built in various places, and the products produced were mainly conventional pongee and polyester taffeta, resulting in a sudden explosion of production capacity in the market.
In addition, many textile bosses have been preparing for a rainy day since the past few years, focusing on the low labor costs in the central and western regions. , cheap rent, relatively relaxed environmental protection and other advantages, a large-scale migration of production capacity has begun, and production capacity has been concentrated in the central and western regions. This year, the impact of external expansion of production capacity has become particularly obvious, adding to the current market situation.
The market is bleak, but the sales of water-jet looms are still growing. Why?
In an atmosphere of unsatisfactory market conditions and unyielding regulatory measures, reports show that sales of water-jet looms have still maintained last year’s high growth trend , this is a dangerous signal for the filament weaving market in Jiangsu and Zhejiang this year!
Although, the current market is still worried about high inventory, there are very few orders, very few customers, large orders are rare, and price wars are becoming increasingly fierce. Most manufacturers are on the verge of On the loss line, the production capacity of peripheral looms is constantly being released. However, the corporate factories that were transferred to northern Jiangsu and central and western regions in the past two years have just been built. The initial investment was too large and they all carried a certain amount of debt. If we do not continue to arrange machines, the funds will be withdrawn even more slowly, and we will be in a state of “riding a tiger with difficulty.” In this state, we can only continue to add more machines and put them into production.
The air pressure of downstream weaving enterprises is unstable, but the upstream PTA and MEG are “rosy” all the way!
Facing difficulties such as high inventory, concentrated release of production capacity, fierce homogeneous competition, and high pressure on labor, water and electricity costs, weaving enterprises have obvious insufficient air pressure and may not be able to overcome the difficulties in a short period of time. In the overall sluggish market, PTA has been “surge” in the past two days. As of the 18th, PTA’s main 1909 contract closed at 53,416 yuan/ton, which was a significant increase of 130 yuan/ton compared with the settlement price on the previous trading day. The increase was 2.46%. In terms of profit, as of the 18th, PTA’s profit was 884 yuan/ton, a significant increase of 509 yuan/ton compared with the 3rd.
In the case of weak cost support, the main reason why PTA bucked the trend is that the editor believes that the recent frequent installation accidents and increased Hengli will undergo maintenance for 15 days in the latter part of the last period, and Yisheng has dropped 225 by 50% in a row, which makes PTA inventory expectations turn to balance, supply and demand are improving, and prices continue to rise.
PTA rose, driving “brother” MEG to also rise. MEG has always been regarded as a “bad guy who cannot be helped”, but it has also been very successful in the past two days, “singing all the way”. As of the 18th, the internal price of MEG was 4,417 yuan/ton, compared with 4,230 yuan/ton on the 14th of last month. , a sharp increase of 187 yuan/ton, which is the largest increase in MEG this year!
In terms of trading volume, MEG trading volume reached 576,000 on the 18th, reaching the highest level since the 10th.
With the increase in upstream raw materials, the price of polyester has also increased recently, and the price of polyester DTY has increased. The most obvious is that the quotations of manufacturers have increased. Boosted by the easing trend in Sino-US trade, as of the afternoon of the 19th, polyester yarn production and sales in Jiangsu and Zhejiang regions were good, with average production and sales around 240%, and some manufacturers reached 300%, 400%, and some even closed their sales! This is the best production and sales of polyester filament since the beginning of this year!
Tmall 618 started with a big bang, and e-commerce clothing brands released good signals!
Although the performance of weaving companies is unsatisfactory, the market still has periodic releases of good news. For example, at this Tmall 618 event, e-commerce clothing brands experienced a big reversal, which will also stimulate demand in the fabric market! On June 16, clothing sales increased by more than 266% year-on-year in just one hour! Amazing! Sports and outdoor clothing exceeded 100 million in one minute; men’s and women’s clothing followed closely, exceeding 100 million in 2 minutes and 7 minutes respectively; Tmall’s shapewear category increased by a full 20 times; sun protection sleeves sold 500,000 pieces in 24 minutes , an increase of 11 times over last year; more than 1 million sun hats were sold in just 39 minutes.
Now, trendy brands and designer brands have become new hot spots pursued by young people.�Lu Yan’s personal brand COMMEMOI only took 1 minute to complete the full-day performance on June 18 last year. Even niche products like Hanfu also surged 320% year-on-year on June 16!
It can be seen that clothing is still in demand, and the domestic demand in the e-commerce market is still very strong. According to the experience of previous years, “618 activities” and “Double Eleven activities” can drive a small wave of market development. Some fabrics will be shipped relatively smoothly, and the number of orders received by textile companies will increase. Therefore, the explosion of clothing brands in the 618 event may also drive the trend of the weaving market.
It is understood that cold-proof clothing fabrics, functional fabrics, outdoor fabrics, etc. currently perform better than other conventional varieties on the market, and the order volume of these fabrics may increase in the future. It can be seen that there is still a demand for end-use clothing, and it is not as bad as rumored. Weaving companies do not need to be affected by pessimism.
Although the weaving inventory in Jiangsu and Zhejiang is currently relatively high, the Sino-US trade is now clearly easing, and foreign exports may be eased. 5. Orders suppressed in June may be released, further easing inventory pressure.
The upstream polyester market is performing well, the price of polyester filament has increased, and the motivation of weaving companies to purchase raw materials will also be strengthened. In addition, the demand from clothing companies is still strong, and the textile market may There will be a brief respite.
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