Do you still remember the article I wrote at the end of February about the hot sales of high-elastic pongee? At that time, high-elastic pongee was frequently displayed on the screen, and people kept asking for this fabric. It was selling like crazy and the inventory was running low. But now, in April, its popularity has faded, and gray fabrics of factory-ordered quality and market quality are already being sold.
Ordered goods are sold as market goods
It is understood that although March is the peak season, the demand for high-elastic pongee is still large. However, unlike February, the price of gray fabrics in March has shown a downward trend. In March, an article was also published about the price of high-elastic pongee being so cheap that customers were rushing to get it. The price at that time was already discounted. By April, the price dropped even more, but customers were no longer rushing to get them, and demand was also decreasing.
“The inventory of high-elastic gray fabrics is increasing. The factory now has more than 200,000 meters, and we plan to offer 100,000 meters in cash at a special price. But the price is really low. The quality of the order is sold out on the market, which is really heartbreaking! “A textile boss who specializes in the production of elastic fabrics shouted directly.
According to market experience, the price difference between market orders and orders for high-elastic pongee gray fabrics is 0.2 yuan/meter. This is equivalent to a price reduction of 0.2 yuan/meter, but before that, the price of high-elastic pongee has already dropped. Taking 75D high elasticity as an example, the price of order quality was 1.55 yuan/meter in February, dropped to 1.45 yuan/meter in March, and is now only 1.25 yuan/meter. In general, from February to April, 75D high-bomb prices fell by 0.3 yuan/meter. However, the current price of polyester raw materials is significantly higher than that in February. Taking DTY as an example, it is 200-300 yuan/meter higher. Costs have risen and selling prices have fallen, which means profits have shrunk again!
The delivery speed of gray fabrics dropped in April
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. Without orders, weaving companies lack the courage to raise prices no matter how high the cost is. The sales situation of fabrics in April is not optimistic. The peak season market in the first half of this year is generally not as good as in previous years. Except for some hot-selling products, it is difficult to sell other products.
The recent textile market has returned to an era when flour was more expensive than bread. At present, when water-jet looms are still supported by spring and summer regular orders from foreign trade and are about to be delivered, orders continue to be in good condition, but follow-up on new orders is insufficient. Warp knitting and circular knitting machines reported a serious lack of orders, so the overall market in Jiangsu and Zhejiang began to decline. At present, the price of raw materials is rising, and it is more difficult to follow the price of gray fabrics. With the continuous compression of profit value, the willingness of factories to produce inventory continues to decrease. Currently, according to data monitoring from Silkdu.com, the operating rate of looms in Shengze has dropped to 74.2%.
According to Boss Bu, the order receiving situation was good in March, but in April, the order placing situation took a turn for the worse. So far in April, no order has been received.
At present, the circulation of gray fabrics in the market is mostly between market orders and companies that prepare goods in advance. Due to the changes in today’s market transaction logic, stocking up in advance has gradually been replaced by on-demand orders. In the absence of a fundamental improvement in terminal demand, the past hot-selling scene of “igniting at a moment’s notice” may be difficult to reproduce. After all, the high inventory caused by overcapacity has made it difficult for the order market to breathe. However, the demand for market orders is acceptable, so naturally the fabric bosses of the ordering companies have companies that sell gray fabrics to market orders at a low price.
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