Currently, a total of 8 new coronavirus vaccines have been approved for emergency use in many countries around the world. As of February 3, the global population has received more than 100 million doses of COVID-19 vaccines. There has been a significant decline in the number of newly diagnosed cases recently. As of February 5, there were 510,000 new confirmed cases worldwide in a single day, a decrease of 290,000 compared to the same period last month. Once the epidemic is controlled, one of the major negative factors affecting the textile market will no longer exist. So what changes will be made to the textile market after this year?
Priceincreasesforgrayfabricswillbecomethenorm
Lookingbackonthetextilemarketin2020,weavingcompaniesmaybethemostmiserablelinkinthetextileindustrychain.Firstofall,internationaloilpriceshavebeenatlowlevelsthroughouttheyear,upstreamtextilerawmaterialsarealsoathistoricallylowlevels,anddownstreamfabricpriceshavenosupportatall.Inaddition,theepidemichascausedtextileorderstoshrink,thedemandforfabricsisfarlessthaninpreviousyears,andthesupportonthedemandsideisnotstrong.Therefore,thepriceoffabricsin2020hasbasicallydroppedbacktoafewyearsago.
Takethemorecommon75D24Tchiffononthemarketasanexample.In2019,thebasicpricewas3.3yuan/meter,butby2020thepricewilldropstepbystepto2.5yuan/meter.Around2.1yuan/meterforlargequantities.Fabricpricedropsofmorethan20%areverycommonin2020.However,thissituationwillgraduallyimprovein2021,andpriceswillgraduallycatchupwithorevenexceedthequotesin2019.
AccordingtoAccordingtomarketresearch,textilecompaniesgenerallyhavehighconfidenceinthemarketafterthenewyear,mainlybecausetheinvestmentinvaccineshasmadetheepidemiccontrollable.Confidentweavingcompaniesalsoreversedtheirpreviousattitudeandbegantodaretohoardrawmaterials.InlateJanuary,severalpolyesterfactoriesinNingbobegantopromotesaleswithrareintensity.AccordingtotheInternet,thepriceofPOY75D/36Fevendroppedto5,800yuan/ton,whichisnearly1,000yuan/tonlowerthantheregularquotationofthisspecification.AlthoughthemarketpriceMostoftheweavingfactorieshavestoppedproduction,butthisdoesnotpreventclothbossesfrompurchasingrawmaterials,sotheproductionandsalesofthesepromotionalfactoriesalmostexceed1,000yuan.
Asanotherimportantmanifestationofmarketconfidence,fabricpriceswillalsochange.Ontheonehand,thecurrentinternationaloilpricehasfarexceededlastyear,andrisingpricesoftextilerawmaterialswillbeamajortrendin2021.Ontheotherhand,theworstoftheepidemichaspassed,themarketisgraduallyrecovering,andthedemandforfabricswillalsogrow.
Infact,thisrecoveryhasbeenveryobviousaroundNewYear’sDay.Take50Dfour-wayelasticasanexample.Thisfabrichasbeenverypopularinthemarketinthepasttwoyears.Inthefirsthalfof2020,Thepriceisbasicallyabove1.5yuan/meter.Bytheendofthesecondhalfoftheyear,severalpriceshadrisento1.7yuan/meter,andthepriceinthelateststagewasalreadyaround1.9yuan/meter.
2020maybethelowestfabricpriceinthenextfewyears.Fabricpriceswillstarttorisestartingnextyear.Inthetextilemarket,notonlythepriceoffabricswill”beartheburdenofhumiliation” in 2020, but the price of dyeing fees is even more sad.
3 The peak season may cause dyeing fees to rise sharply
Dyeing fees will always rise several times every year during peak seasons such as March-April and September-October. However, the dyeing fee market in 2020 is relatively calm. Especially in the first half of the year, dyeing factories rarely increase dyeing fees, and many dyeing factories even offer discounts. It’s not because the costs of printing and dyeing factories are not high in 2020. On the contrary, the expenditures on various rents, water and electricity, depreciation, labor, safety supervision, and environmental protection are still under great pressure.
The difficulty in raising prices is mainly due to the lack of reasons for price increases in the textile market in 2020. However, in October the market gave printing and dyeing factories a chance. Because the weather suddenly turned cold, the autumn and winter fabric market made great efforts to place a large number of fabric orders, and the printing and dyeing market ushered in a long-lost liquidation scene. As a result, various dyeing factories quickly canceled the discounts and found the right time to increase the dyeing fees. Some dyeing factories even raised the dyeing fees twice in just half a month. This shows that the printing and dyeing market has a strong desire for an increase in dyeing fees.
And The printing and dyeing market after the new year may not be as difficult to increase dyeing fees as it was in 2020. On the one hand, the entire textile market has been completely recovering since December, and the phenomenon of queues in printing and dyeing factories is very high.�Generally speaking, the order volume is no different from previous years. It also seems to indicate that the textile market will usher in a complete recovery after the year. On the other hand, the price of upstream dyes has shown an upward trend in recent times. However, because the printing and dyeing market has also been suspended for holidays, it has not yet been reflected in dyeing fees. But after the year, with the support of demand and costs, dyeing costs will most likely start to rise.
Business owners engaged in the textile trade are not willing to see the increase in gray cloth and dyeing fees. After all, their own costs will increase a lot invisibly. But from the side, as long as the prices of these products increase, it means that the textile market is improving. In the peak season, no matter how high the cost is, profits can be guaranteed, but in the off-season, no order is in vain no matter how low the cost is. However, textile workers still need to be cautious when quoting prices. After all, various costs and exchange rates are highly variable.
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