Sino US Tariff Threat To Eliminate Textile Market And "Gasp"

After 209 days, the heads of state of China and the United States will meet again.

In the first meeting of the US dollar meeting in June 29th, leaders of the two countries reached a consensus, and China and the United States resumed economic and trade consultations on the basis of equality and mutual respect. The US side said it would no longer impose new tariffs on Chinese exports. The two countries' economic and trade teams will discuss specific issues.

"No longer (NOT TO) has imposed new tariffs" has gone beyond the "postponed" levy that the market expects.

The news is boiling and the market is boiling.

Since May 2019, the Sino US trade war has continued to escalate. For the textile and garment industry, the change of Sino US trade policy has broken the pattern of import and export in every link of the industrial chain, resulting in an imbalance between supply and demand in the industrial chain, which once led to a poor market order and a strong market wait-and-see atmosphere.

After a lapse of 1 months, the stalemate pattern finally achieved a substantial breakthrough. The tariff threat of $300 billion was eliminated, and a "strong heart" was injected into the market that originally weighed ahead.

Industrial chain from top to bottom, or will reproduce the wave of price increases!

Just last week, the good face of the macro level directly stimulated the successive increase of polyester products. After the Dragon Boat Festival, polyester filament products began to rise collectively, with a range of 200-300 yuan / ton, only a small number of weaving enterprises entered the field to replenish the goods; in the middle of the POY market, the market rose again, rising at 200-300 yuan / ton, and more than half of the enterprises began to purchase raw materials. Recently, the price of raw materials has increased again, and the prices of mainstream manufacturers have increased by 200-400 yuan / ton.

The price of raw materials has risen to more than 1000 yuan, and the cost of weaving factories has increased linearly. The price of grey cloth has begun to stabilize.

Next, the low price polyester factories will not let go of the opportunity to raise prices. It is very likely that the price will be raised again with the help of this great advantage. Although weaving mills have a lot of stocks in advance, they will gradually increase their quotations and recover the lost land with the help of raw materials and foreign trade markets.

Grey cloth is in the lowest valley, traders can make replenishment.

The rising prices of raw materials have driven traders who have been sitting on the fence for the lowest price. It is understood that last week, many weaving manufacturers said they were more busy than before, and more or less came to pick up the goods.

The owner of a textile mill in Wujiang said that the average daily shipment of the factory was 20 thousand meters above the average, mainly in T400 and imitation memory, mainly in Fujian customers.

Another textile owner based on silk imitation said that although the market is unstable, many goods have been sent to the Keqiao market before the goods are better. The volume of market transactions has been peg, which has led to a decline in the stock of the industry.

According to the sample data from China's silk net, the inventory of the grey fabric market has dropped to about 40 days. Although the decline is not obvious, at least the momentum has been suppressed at the early stage and the market confidence has been restored.

Although there are different views on the development trend of the industrial chain, many textile enterprises believe that the stabilization and recovery of the industrial chain price will play a positive role in promoting the whole industry chain. The rising cost of raw materials will inhibit the price of grey cloth which has fallen to the end of the previous period.

After several rounds of replenishment of raw materials, most of the raw material inventory of the weaving factories increased from 7-10 days to 15-20 days, and the number of individual raw materials in 1 months was the largest.

Therefore, it can be seen that the production cost of the cloth manufacturers nearly a month has also been locked. "The price of grey cloth has been at the lowest level in the last two years. Some varieties have fallen to losses, and they will not fall much later, and the prices of raw materials are there." A weaving factory owner Wang said.

Blockage of the industrial chain "sewer" will really get through?!

This year, we have always said that the high storage of grey fabric directly blocked the circulation of the upstream and downstream industries, and the order flow rate was very slow. But at present, the inventory of industry is slowly declining, and the trade in the United States has spread well. Does this mean that the industrial chain "sewer" has been quickly opened up?

We first look at the printing and dyeing links, as the downstream market of the textile industry, and the prosperity of the printing and dyeing industry represents the amount of market orders. From the printing and dyeing Market in Jiangsu and Zhejiang provinces, we know that since last week, orders for printing and dyeing factories have increased slightly, but they are far from being "saturated". The delivery date is still relatively fast.

As a dyeing factory operator in Shengze said, there are not many orders in the factory at present. There are more factories in the high elastic fabric, but there are no big orders, the orders are rather messy, and the delivery time is still maintained for about 4-5 days.

Another head of the printing and dyeing factory also admitted that there were not many orders in the factory recently. The workshop began to rest on Sunday, and the price of dye was still high. The cost of dyeing factory was very high, and the dye cost could not go down.

It is understood that at present, the delivery date in the market is maintained at around 5-9 days, basically maintaining the level of last week. Most dyeing factories indicate that the orders in the factory haven't been improved in large areas, and the market is still closing to the off-season. It can be seen that the printing and dyeing Market is still not warm, or even "insufficient to eat", and the market still lacks the guidance of terminal market orders.

Xiao Bian has words.

The use of "hot" to describe the inventory of grey cloth in the industry is mainly due to the low inventory, and the market demand has been exploded in short supply, which is good for any part of the textile upstream and downstream. However, the high inventory status of grey cloth has become the most crucial factor to choke off the improvement of the market. When the industry inventory is huge, it will take time to digest the market.

However, the easing of trade relations between China and the United States will help push the market forward. Although it is not known that the market is improving, it needs further orders to verify it. Only to boost the confidence of the whole industry chain is the root.