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Textile Market Undergoes Surging Pressure To Inventory

2019/5/24 17:26:00 8109

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Recently, the textile market has been surging and business risks are increasing. The current situation and market mindset of the main bodies are changing. Although companies are holding up prices, enterprises are losing their pricing power under the pressure of mountains.

Market downturn, enterprises are difficult to obtain orders. Due to the escalation of the Sino US trade war, the two countries impose tariffs on each other, the domestic textile export orders are blocked, the demand weakens, and the production and marketing of the supply chain is clear. According to enterprises in Shandong, Jiangsu and other places, yarn orders have declined significantly since May, although enterprises have been reducing their quotations for a long time, the market mentality is still pessimistic. At present, enterprises are facing a dilemma: continuing production, increasing inventory pressure, parking waiting and watching, and greater losses. Business is running on thin ice.

Raw materials fluctuate greatly, and purchase is the main factor. 。 In the near future, Zheng cotton continued to decline and the low point dropped to 13370 yuan / ton. This week, the reserve price of the cotton reserves was 13893 yuan / ton (standard class price), down 579 yuan / ton compared with the previous week. Xinjiang cotton spot reduction of nearly 1000 yuan / ton. Large fluctuations in raw materials, most of the textile enterprises do not dare to hoard cotton. According to the introduction, after the Spring Festival, most textile enterprises have kept their raw materials inventory low, and the raw material inventory of the large plant has been maintained for 20-30 days, and the small factory has only maintained 10-12 days. Although the enterprise is thirsty for cotton, it avoids the need for cotton. Entering this week, textile enterprises are mainly buying cotton and other cotton resources have been reduced.

The yarn market is precarious. Recently, domestic yarn has been stable. As of May 23rd, the price of 40 cotton yarns in Binzhou District of Shandong was quoted at 25000 yuan / ton, down 300 yuan / ton compared with 20 days, and 32 rounds of Shandong Weifang ring spinning price 22100 yuan / ton, 20 yuan or 400 yuan / ton compared with 20 days. At the same time, the price of polyester yarn and man cotton yarn also dropped slightly. As of May 23rd, the price of 32S polyester yarn in a factory in Shijiazhuang, Hebei, was 14300 yuan / ton (including tax), compared with May 20th, the price dropped by 200 yuan / ton, and sales volume was acceptable. Shandong Weifang factory 32S cotton yarn quoted price of 15200 yuan / ton (including tax factory), compared with May 20th, the price fell 200 yuan / ton, more volume and a slight discount.

Because of the stagnation of yarn sales and the sharp decline in the cost of raw materials, textile mills have plans to cut prices and attract orders. A person in charge of an enterprise in Foshan, Guangdong, said that the impact of Sino US trade friction on the cotton textile industry chain is far greater than that of the industry. At present, the Foshan market is selling cotton yarns, and the textile enterprises basically send all the salesmen in the enterprise to the first-line market, which shows the difficulty of sales. At the moment, yarn prices are shaky, and the reason for the price cut is not yet coming. The reason is that the price of raw materials for pre purchase is still high, and high cost yarns are still struggling.

It is difficult for domestic yarn to go out of stock when downstream does not give strength and external yarn impact. According to the analysis of the industry, even if the recent price of yarn is coming down, the pressure to stock is still very large. On the one hand, the weak consumption of gray cloth and insufficient orders caused the low operating rate of enterprises. On the other hand, in May, China's main port's external yarn inventory reached a record high, and the bonded area and logistics area were full of yarn. Traders were eager to cash in.

Therefore, during the 5-6 months, domestic textile enterprises still face many difficulties. Despite the shortage of raw materials, they dare not hoard goods. Although the price of yarn has been lowered, it is still difficult to get orders. Although the cost is upside down, it is still severely affected by foreign yarn. Enterprises generally look forward to a better trade situation and hope that the G20 heads of state of China and the United States will bring good news.