On Monday, the price of textile raw materials finally ended the stable situation. Many raw material factories announced high-profile price cuts!
The price of polyester yarn from a factory in Taicang was reduced by 400 yuan
The price of polyester yarn from a POY factory in Xiaoshan was reduced by 150-250 yuan today
The price of polyester yarn from a factory in Shaoxing was reduced by 150-250 yuan today. Lowered by 300 Yuan
Today’s price of polyester yarn from a factory in Xiaoshan is lowered by 100-350 yuan
Today’s price of polyester yarn from a DTY factory in Shaoxing is lowered by 200 yuan
……
After more than half a month of shock, the price of polyester yarn finally experienced a sharp decline again. This drop in raw material prices is actually an intuitive manifestation of the downstream textile market. In the textile market during the peak season, there may not be much of a peak season!
The operating rates of weaving and printing and dyeing have “double dropped”, and the textile market has been sluggish
The textile market in April was as expected. The market is not better than in March, but is gradually declining. Especially as the epidemic continues to recur in Europe and the United States, and lockdowns occur from time to time in various countries. At the same time, a large amount of clothing inventory last year has not been digested, and the overall demand for terminal clothing is sluggish. Many textile companies have said that after entering April, orders have further decreased.
The weaving market was almost the first textile segment to be affected. The overall operating rate rebounded rapidly after the year. However, this wave of gains gradually slowed down in mid-to-late March. April has even started to turn downward. In particular, the operating rates of textile clusters such as Changxing and Haining are significantly lower. At the same time, the printing and dyeing operation rate has also quietly changed recently. With terminal orders shrinking and gray fabric warehousing decreasing, printing and dyeing factories are unable to maintain production stocks like weaving, and the operation rate immediately begins to decline slightly.
The weakening of weaving and printing and dyeing markets is mainly due to terminal clothing This is caused by the decrease in orders, but the decrease in terminal clothing orders is also inseparable from the increase in prices of raw materials and fabrics. According to a textile trader, they negotiated a four-sided elastic order a year ago, totaling 30,000 to 40,000 meters. The original gray cloth price of this fabric was 2.5 yuan/meter, but after the year, as the price of raw materials rose sharply, the price of the fabric has The price has risen to 3.5 yuan/meter. At the same time, due to the increase in dyeing fees, this order has completely lost money. In the end, they canceled the order because the price increase was unacceptable to the customer. Rising raw material prices have led to a reduction in downstream orders, and the downstream market has begun to react on the upstream raw material market.
Weaving has no orders and no profits, and there is little motivation to hoard raw materials
“Now it’s weaving factories and foreign trade companies that made last year’s orders. It’s the most difficult,” said a person in charge of a weaving company. “The price of textile raw materials will rise sharply after the new year. Although the price of our fabrics has also risen, it cannot keep up with this speed, and we dare not rise at this speed. Most customers cannot accept the price increase. Our current quotation They are all close to the cost line, and some fabrics are even made at a slight loss. At the beginning of the month, the salesperson of the raw material factory said that the price of raw materials was going to rise soon. It was originally planned that the price of raw materials would rise again, and the fabrics would follow the increase to expand profits. But now the raw materials The price has dropped, but our fabrics are made from high-priced raw materials. Customers will definitely have to counter-offer when placing orders later. If we accept, we may not even be able to break even.”
The price of fabrics seems to have increased by more than 20% compared with last year, but in fact, most weaving companies have increased their raw material costs. , the profit margin has not expanded, and may even be shrinking. However, the price increase of upstream raw materials has brought real profits. Last year, polyester filament was in a state of loss for a long time, and the profit margin began to rise sharply after the year. Especially in mid-March, the profits of several raw materials basically exceeded 800 yuan/ton. Even if there is a correction in raw material prices at the end of March, profits can remain above 600 yuan/ton.
It can be said that the profits of the entire textile industry chain in the near future are in raw materials The weaving end is already in a state of no orders and no profit. Weaving companies are naturally not very enthusiastic about purchasing raw materials. Currently, the amount of raw materials hoarded in the weaving market is mostly around 20-25 days, which is even much lower than during the epidemic last year. Weaving companies are unwilling to take over raw materials, so these inventories can only be stranded in raw material factories. Raw material factories are helpless when they see that high-profit raw materials cannot be realized, so price reduction promotions are the only option.
The effect of the price reduction is very obvious, and the production and sales have already broken through in just half a day 300%, and over 500% throughout the day. However, the market is not optimistic about this wave of price cuts. Although the sales of raw materials were very good on the day of the price reduction, it is still difficult to solve the problem of raw material inventory and the shortage of fabric orders in the overall market. In addition, weaving companies are accustomed to “buying up and not buying down”, so price reduction canThis will prompt companies to further wait and see, and subsequent sales may not be guaranteed. Before the textile market improves substantially, price reduction promotions by raw material factories are just clearing inventory and overdrafting future orders. The current operating rate of the downstream weaving market may delay the next purchase of raw materials, and the next peak of production and sales may have to wait longer.
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