Around the Spring Festival, the fabric market is flooded with price increases for various raw materials. Polyester, nylon, cotton yarn, rayon, and even “Adou” spandex have risen sharply. Faced with the continued rise in raw material prices, domestic fabrics can be said to have collectively increased in price. Domestic fabric prices have generally risen, but when the same fabrics are exported abroad, will foreign merchants accept the rising prices from Chinese suppliers? In fact, every company has different opinions.
European and American markets – integrity first, making money second
In the eyes of foreign trade people, the European and American markets have always been synonymous with mid- to high-end fabrics. Generally speaking, the quality and price of fabrics exported to European and American markets are higher than those in other markets, and the profit margins are also larger. Mr. Wang of Chunzhu Textile told the author that during the recent period, customers have placed better orders for 400T and 380T matte nylon spinning. These fabrics are mainly used for cold-proof fabrics such as down jackets. The price of nylon fabrics has gone crazy recently. The cost of fabrics has increased by nearly 1 yuan, but the price cannot be increased by customers. They are all old customers, so they have to do it even if the profit is small. Nowadays, maintaining customers is as important as making money.
Keri is a local fabric company in Shengze that has been relatively successful in the European and American markets. It is understood that Keri recently mainly produces high-density polyester taffeta, and its specifications are mainly concentrated on 330T, 400T, and 420T products. Although domestic costs have increased, since they are all old customers, the prices agreed upon after signing cannot be changed at will. Even if there is no money to be made, good integrity must be established in front of customers. Raw materials have been rising and falling. If you grasp a reasonable profit margin, your operating risks will be smaller.
Japanese and Korean markets—raw materials surge, risks increase
The Japanese and Korean markets can be described as “small but sophisticated”, especially Japanese items, both fabrics and ready-made clothes are made as “high-quality products”. For European and American orders, as long as the preliminary tests have been passed, the production of large-scale goods will be slightly simpler; but daily orders are different. Almost all daily orders will be fully inspected, so companies that make daily orders will not do large-scale goods. It’s as careful as making a sample. A company in Shengze that makes Japanese and Korean fabrics revealed to the author that they mainly make rayon fabrics for export to the Japanese and Korean markets. Around the Spring Festival, the price of rayon continues to soar. The originally signed fabrics have good profits, but the cost has increased too much. According to the current raw material prices, there will definitely be a loss. In addition, the daily order requirements are so high, if there is a problem with the fabrics, compensation will have to be paid. The risk is too great. Fortunately, a domestic raw material company encountered difficulties in capital turnover and sold the goods at a low price. It immediately stocked up 8 tons. At least it won’t make a loss on this order. The price for the subsequent orders has not been negotiated because the raw materials are too high. I hope the raw materials will fall back later. Regarding the Korean market, the person in charge of the company said that compared to Japanese customers, Korean customers are more tricky. Now that the “THAAD” incident has brought Sino-South Korean relations to a freezing point, Korean trade must be more cautious this year to avoid losing both wives and soldiers. .
Middle East market-supply exceeds demand, seller’s market dominates
The Middle East is rich in oil and other resources are mainly imported. Women in the region are influenced by religion and wear black robes and black headscarves as their daily attire. According to Suzhou Jiutu Jacquard Textile Week Manager, they have been producing black jacquard fabrics in the Middle East all year round, mainly FDY and DTY products. Since the second half of last year, the price of raw materials has continued to rise, and the cost has increased significantly. However, there are not many customers in the Middle East in the market, and supply exceeds demand. As costs rise, fabric prices rise accordingly. Customers have expressed their understanding and acceptance. Compared with other markets, the Middle East is easier to do. Generally speaking, except for Ramadan, monthly orders are relatively stable.
Southeast Asian market – dependent on China, strong supply side
In recent years, Southeast Asia has gradually become a global garment processing and export center. Southeast Asia’s low cost advantage has attracted global textile and garment manufacturers to carry out OEM processing here. Although the garment processing industry has developed rapidly, the textile and garment industry chain is still in its early stages of development there, and a large amount of fabrics need to be purchased and imported from China. According to Wujiang City Linwei Textile Manager Shen, in recent years their fabrics have been mainly exported to Southeast Asia, and during peak seasons they usually go through 4-5 cabinets. At present, orders are still in the recovery period, and most of them are proofing. When talking about the issue of rising prices of raw materials, Manager Shen said that the rising prices of raw materials are a major environmental factor. The increase in raw materials and the corresponding increase in fabrics are not a big problem. We have been working as old customers for several years, and we already understand each other. Product quality is the key.
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