Why Textile Prices Are Rising?

From June to early July, the sales of Shengze linings market were not only dull, but also in terms of price.

From the upstream market, recently, Sinopec raised the price of half light chips in the month to 11800 yuan / ton, up 500 yuan / ton before.

And there is further market rumors that Sinopec will continue to raise the price by 500 yuan / ton.

If this information is true, the main slicing system of domestic chips is such a large price raising action, which undoubtedly reflects the helpless fact of the current polyester chip market. Under the pressure of cost, the slicing enterprises are already overburdened.

At this point, polyester raw material PTA in all the way up the voice of the song to the 9600 yuan / ton position.

If the settlement price of PTA 9850 yuan / ton and MEG 9550 yuan / ton is equivalent to the cost of polyester chip in July, the cost of half light section will be close to 12300 yuan / ton.

At present, spot trading is more difficult to break through 11800 yuan / ton.

In the current market situation, the gap between the 500 yuan is hard to narrow.

In the face of this situation, according to common sense, the rising price of upstream raw materials will drive the price of downstream fabrics to keep up. However, from the trend of China's &S226 and Shengze silk chemical fiber index, this is not the case. Then why is textile price going up?

Inventory increase in textile downstream market indigestion

For the reason why the price of flour noodles is difficult to rise, Li Wei, a weft textile company in Shengze's six business district, believes that the backlog of enterprise inventory is a major reason.

Since July, a large number of production enterprises in the warehouse continue to backlog a lot of cloth, dyspepsia has become a headache for many businesses. According to Li manager, reporters should tell reporters that many varieties that should be sold well this year can not be digested. Many enterprises are expected to sell well this year according to some popular market segments in the second half of last year. As a result, the quantity of regular varieties is too large, which results in a situation of oversupply. Therefore, a lot of stock is backlog.

Competition is fierce, profit space is compressed.

"Don't mention the price increase, that is, the price is reduced, and the goods are also out of quantity.

"The owner of the Silk Market in the two silk fabric area of the East silk market said," now cloth can not be sold, the market competition is too fierce, the profit space has been compressed to a very thin level, we have long wanted to raise the price, but there is no way out now. Now we can keep the original sales and sell well.

"When the price of fabric is stagnant this year, many operators say that because of the low order, and the price of the buyers is very low, many merchants are doing or not, not doing it or not. Under such circumstances, the pressure of rising textile prices is obvious.

The loom can not stop completely.

"Although the market is not stable this year, as an enterprise, it can immediately organize production for orders, and it has to ensure a certain starting rate, especially the water jet looms, which results in imbalance between supply and demand of conventional fabric products, which is also a reason for the rise in price of flour materials.

"The boss of Fujian road said so.

Since the beginning of this year, the start-up rate of Shengze and its surrounding areas has dropped significantly, and many workshops have ceased production. However, inventory is still hard to digest quickly. He owns more than 100 water jet looms in his own factory, and inventories increase by 1 times compared with the same period in previous years.

Although this is just an inventory situation of a company, but reporters from the whole market reflects the situation, these new increase in inventory, due to technical force reasons, generally the production of conventional products, so that the situation of conventional products oversupply began to form, the price competition between peers is also increasingly fierce, and ultimately suppress the fabric price.