Down, down, down! The recent textile market has been “falling”, and the entire industry chain from top to bottom has entered a downward channel!
#头头Textile Hot News
01Crude oil fell more than 6%
The decline in oil prices in the past week set a new eight-month record, with WTI crude oil falling by more than 6%.
02PTA fell by 285 yuan/ton
PTA’s internal price began to plummet on the 10th of this month, falling from 5,045 yuan/ton to 4,760 yuan/ton, a drop of 285 yuan/ton.
03Polyester filament fell by nearly 2,000 yuan/ton
The decline in polyester filament yarn is very obvious. Since the highest point in mid-October, it has experienced “12 consecutive declines”, falling by nearly 2,000 yuan/ton!
04The price of gray cloth fell by 0.1-0.5 yuan/meter
The upstream fell sharply, and the downstream naturally had to fall as well. The price of gray fabrics in the weaving market also fell rapidly, ranging from 0.1 to 0.5 yuan/meter.
In fact, it is normal for prices in the industrial chain to rise and fall, especially as the new year approaches and when the textile market is coming to an end, a fall in prices is even more expected. However, the “roller coaster” market situation caught the textile people off guard and made them unbearable. But the price drop is not the worst thing. The worst thing is that the prices of polyester filament and gray fabric have dropped, but the production and sales are still light, with no one buying it!
01 Grey fabric is sold but no one cares
The recent weaving market has begun to return to desertedness with the end of the “Double Eleven”, especially domestic orders have declined significantly, while foreign trade orders have improved. However, the entire gray fabric market cannot hide the signs of decline, with gray fabric prices falling and inventories rising…
Even the popular elastic fabric has lost its former glory, and both volume and price have dropped! According to the person in charge of a manufacturer specializing in the production of elastic fabrics: “The domestic market has been too weak recently, and no one wants to sell goods.No one wants the 100D four-sided bomb at 2.2. It will be sold at 2.4-2.5, and it can’t be sold even if it is reduced by 0.3 cents!”
It is understood that the current price of gray fabrics has already dropped from the high level and is still falling, and the market has seen another phenomenon of selling goods. According to sample data monitored by China Silk City Network, the inventory of gray fabrics in Shengze has recently risen to about 29.1 days. As the market operation rate rebounds, the previously tired inventory has not been eliminated, but new gray fabrics have been woven, and the gray fabrics in the factory have begun to become tired again. Although Boss Bu knew that selling goods could not solve the fundamental problem and would plunge the market into a vicious cycle, they were forced to sell goods due to many helplessness.
02 Sales are a helpless “quick-acting pill” for self-help
On the one hand, after the end of production restrictions, production capacity has returned to normal levels. After the shipment of gray fabrics slowed down, inventories have reached high levels again. Especially for some manufacturers whose production capacity has not been affected or whose destocking has not been smooth during the production restriction stage, their inventories are now getting higher and higher. Due to financial pressure, selling goods has become the most efficient and fastest way to solve their urgent needs. There are many manufacturers who maintain inventory at a relatively reasonable position by cutting prices.
On the other hand, now that the New Year is getting closer, collection work has become the top priority. The end of the year is the time when manufacturers need cash the most, and selling goods is also the fastest way to withdraw funds. Although selling goods basically means no profit or even loss, selling in cash, buying as you go, and getting white money is the way to go, so you’ll be safe!
However, selling goods cannot save the high inventory. In the final analysis, it is because there are no orders and no funds! After the price of gray fabrics rises and falls, it may be a good time for speculation, but there is no group of speculators in the market today. One very important reason is funds! As the end of the year approaches, everyone is withdrawing funds and grabbing money. This is why the price of polyester yarn has dropped by nearly 2,000 yuan/ton, and the production and sales are still on the list. All companies are tightening their purse strings. If there are no substantive orders, no one is willing to spend money. In terms of orders, for the domestic market, this year’s orders have basically ended. Before the Spring Festival holiday, small batches such as duplicate orders and supplementary orders will be the main ones, and large batches are difficult to reproduce.
Therefore, oversupply is bound to happen, and it may be difficult for manufacturers to alleviate their inventory in the future. The manufacturer also said that no one is buying the goods at the current selling price, and the price will drop again. But if the price of gray fabrics falls below the bottom line and the selling effect does not take effect, then manufacturers should reduce production to protect prices.
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