Textile Raw Materials Pull-Up Coincides With The Procurement Cycle Cold Quotation, Weaving More Cautious.

From the beginning of last weekend, the market of polyester filament has been in an early stage of downturn. Production and sales have been greatly outburdled, inventories have declined significantly. It has been playing chicken blood for several days, and the polyester industry chain has also boosted confidence. Not only the mainstream production and marketing of polyester is going up to the top, reaching 240%, 300%, but also 400%, 600%, 700% or even 1000%.

Through this wave of polyester industry chain "up and up" Carnival PARTY, we have to contact the downstream weaving market situation. So what is the downstream weaving Market? What is the mentality of raw material purchase?

"Red May" is expected to fail, the transaction is biased towards small quantities, lack of hot products.

Since May, the "red May", which was expected in the early days, has basically failed, and the weaving Market is growing in low season. In May, the new market transactions were not as good as expected, the fabric market continued to fade, the trading atmosphere was hard to get better, and the mentality began to weaken. Many products appeared to have a downward trend in volume and price, with fewer hot products and more cautious orders in the downstream market.

"As a weaving manufacturer, sales in this period are very ordinary. Compared with last year, the gap is really big. Once queuing and other cash and cash transactions are gone forever," Suzhou Ya Jin weaving knob manager said with emotion to the author, "we mainly produce four side bullet series and CEY, SPH, T400 series of such elastic products, as well as the seasonal double cropping series, twisting silk imitation products, mainly based on domestic trade orders, during this period, orders are generally reduced. Relatively speaking, the four side bullet series is better, but the order volume is generally not large. Market sales are not ideal, especially our weaving factories, the stock pressure has increased naturally.

Wan Gu textile manager Liu also said that at the recent stage, the sales situation of fabric market was not very optimistic, and the inventory pressure of fabric manufacturers had been enlarged to varying degrees. It is understood that the recent market demand for down channel seamless cloth is relatively good, but basically it is mainly small single, customers are mostly small batch and multi batch purchase, and there are few orders for bulk transactions, like tens of thousands of orders in the past are very rare now.

The raw material suddenly rises and pulls up, which coincides with the procurement cycle, triggering the purchasing enthusiasm of weaving factories.

As mentioned in the previous small article, the production and sale of this polyester filament is "exploded". In the final analysis, it benefits from the needs of weaving manufacturers, and the advantages of time, place and place. First of all, because the price of raw materials in the early stage is slow down, the weaving factories are generally cautious about raw material purchase, and have little enthusiasm for stock preparation and no stockpiling plan. Now, near the end of the month, the raw material inventory of weaving factories is at a low level, which belongs to the period when the weaving factories need to purchase. In addition, because of the low price of polyester in the year, the price of raw materials has suddenly risen. Driven by the mentality of buying or selling, the weaving factories will supplement some raw materials more or less, thus triggering a wave of low purchasing enthusiasm.

According to our research visits, raw material inventory of weaving factories is relatively low, the average fall to about 7-10 days, and the ratio has dropped by nearly 10 days. According to convention, the general weaving mills will store 10-15 days of raw material stock for turnover. As a general manager of Ho Mao textile company, as a conventional fabric manufacturer, such as spring Asia spinning and so on, the price of grey fabric has not risen up, or even dropped slightly, in the near term, because of the influence of sales. Therefore, the procurement of raw materials is mostly on demand. This time, at the end of the month, we need to enter a round of raw materials. We also feel that the price of raw materials is relatively low recently, and we have purchased some raw materials with fixed demand. Basically, the stock in the factory is about 45-60 days.

Weaving factories are mostly normal procurement, the follow-up capital pressure is large, and still cautious about raw materials.

Most weaving manufacturers have said that it is precisely because of the purchasing cycle near the end of the month, coupled with a wave of purchasing enthusiasm arising from the sudden emergence of the raw material market, but the follow-up efforts are not high enough. This wave of raw material procurement boom, apart from some traders' speculation, most of the weaving factories belong to normal procurement. In recent days, the market has also returned to the plain.

"Due to the escalation of trade frictions between China and the United States, the overall sales in the near term are not as good as expected. In the past trade wars, terminal customers would place orders in advance, but before the Levy of tariffs, they did not drive downstream merchants to place orders, and we had a strong wait-and-see mentality. We mainly focus on foreign trade, and the main marketing goes to Europe and America. "The chief executive of a major foreign textile company in Shengze is worried about it." so this year, the raw material operation is to meet the needs of rigid demand. On the one hand, due to the lack of our own orders, we are more cautious in our operation. On the other hand, we are not optimistic about the raw materials in the market, because the raw material market without terminal demand is hard to rise, and the stock of raw materials is too large and the risk coefficient will increase.

Most of the weaving factories are cautious about waiting for raw materials to purchase, and replenishment on demand is more common. Wu, general manager of Nantong JE Chuang Textile Co., Ltd. also said that the market is not very ideal, and the raw materials do not dare to enter too much.

Je textile is mainly sales of grey fabrics, mainly the production of conventional twatches, elastic satin and other products. In the near future, it should be the hot season for the production of simulated silk products, but now the market is also relatively popular with 50*75, and the other products have more stock than the earlier ones, which is also an increase in the financial pressure of weaving factories. Coupled with the summer's traditional off-season is approaching, weaving manufacturers will not take up a lot of liquidity to purchase raw materials, are required to purchase goods, to ensure that the balance of production and marketing can be.

Overall, the recent downstream market has not followed the pace of raw materials to pull up, the market turnover is still relatively cold, because the downstream orders are not smooth, so prices, inventory and other basic performance are relatively weak. The weaving Market is cold, and the raw material purchasing power is not enough. The shrinkage of orders, coupled with the uncertainty of raw materials prices and weaving manufacturers' consideration of funds, restrict the raw material stocking cycle of weaving factories to a certain extent.