Prices of raw materials rise across the board
On the first day of the new year, chemical fiber raw materials had a good start, and the price increase mode was launched across the board:
During the Spring Festival holiday, PX prices continued to rise. As of January 27, PX closed at US$1,075.5/ton, an increase of US$24/ton from January 20, an increase of 2.28%.
On the first day of production on the seventh day of the first lunar month, polyester filament manufacturers increased their quotations by 100-200 yuan, and the discounts narrowed. On the second day, another manufacturer offered to make up for the increase. On the third day, prices continued to consolidate at a high level and narrowed the discounts. So far, POY150D has increased from 7475 yuan/ton to 7600 yuan/ton, an increase of 1.67%; DTY150D has increased from 8700 yuan/ton to 8850 yuan/ton, an increase of 1.72%; FDY150D has increased from 8200 yuan/ton to 8350 yuan/ton. tons, an increase of 1.83%.
The cost end of spandex has moved up strongly after the holidays, with spandex 20D, 40D, 70D and other specifications all rising by 1,500 yuan/ton on the first day.
It is imperative to increase the price of gray fabrics
No, on the first day of work, a cloth boss raised the price of gray cloth by more than 1 cent per meter. The increase in the price of gray fabrics is already expected. The editor predicted it a year ago, and many fabric bosses also had clear plans to increase prices after the year. Regarding this wave of price increases of raw materials, cloth bosses are very conflicted. One cloth boss said with emotion: “I am worried about the rise, and I am worried about the fall…”
Costs continue to rise. Even if the price of gray fabrics rises, the extent is still far less than the increase in costs. Therefore, for cloth owners, rising raw materials mean falling profits. But in other words, in 2022, the price of gray fabrics has been below normal levels for a long time, and it is time to gradually return to normal prices.
For the current high cost, textile companies will actually increase the price of gray fabrics in order to ensure their own profits. The boss of the main imitation silk business also said: “Now the gray fabrics have increased by 10 cents, and there may be another wave of increases in the future. The boss of another shop that specializes in satin also said: “As soon as the market opened, old customers came to inquire about orders. Most of the orders in hand are from the previous year. It is not good for the price to increase, but it will increase by about 10 cents soon. Otherwise, it will be more of a loss.” The price increase of gray fabrics is inevitable.
In the market economy environment, the current textile industry is more demand-oriented. I believe that when orders start to come in like snowflakes, market confidence will be greatly boosted, and the prices of raw materials and gray fabrics will also rise accordingly.
Factory production capacity is gradually recovering
According to the editor’s visit to the market, the boss of a company that specializes in elastic fabrics said: “At present, most of the orders are from the previous year, and new orders have also been received. However, the factory must have workers at least starting on the tenth day of the Lunar New Year, and then gradually After recovery, even the most urgent order will take a week to be shipped.”
Another person in charge of industry and trade also revealed: “Although we did not start construction during the Chinese New Year period, foreign customers did not miss the Spring Festival. The quotations during this period have increased. Last year, prices were kept very low to reduce inventory. Now that the epidemic is basically under control, and demand is slowly recovering, we can take advantage of this wave of raw materials to increase a little, depending on the gram weight. If the gram weight is low, it will increase by 5 points, and if the gram weight is high, it will increase by about 1 cent.”
At present, most employees who have returned to their hometowns from other places have not yet returned to work, so the overall market production capacity is low. According to a weaving boss, “We officially started work on the ninth day of the Lunar New Year. Currently, only some local workers and workers who have not returned to their hometowns can come to work. It is estimated that By the end of February and the beginning of March, things are basically back, and production capacity can be restored to more than 80%.”
Summarize
When the market is fully operational and operating normally, and everything is back on track, the traditional peak seasons of “gold, three, silver and four” will follow. After the epidemic is released and the international economy recovers, it is highly likely that global textile demand will pick up. Therefore, is it possible that the low-price era can continue?
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