Demand Determines Textile Market, Weaving Factories, Traders Reduce Inventory And Other Situation Improved.

At the beginning of last week, the Sino US trade negotiations resumed, and the US side said that it would no longer impose new tariffs on the Chinese side. As soon as the news came out, the polyester market was immediately bombed. PTA once stopped trading, and the polyester filament was also advancing all the way. Looking at this situation, many people were worried whether the market of last year's August would be staged.

However, this market did not last long. Last week, raw materials began to stabilize, near the weekend. Under the influence of PTA limit, some pet manufacturers even had price reduction operations. Now the price of polyester has been temporarily stabilized. However, the price of raw materials has been confusing the market before. How about the weaving factories and traders in this period?

Weaving factory: rest is to go further.

"The order is not yet, the raw material first up" is the most accurate evaluation of the weaving market last week. It is said that the raw materials will rise and the fabric will also increase a bit. But this is still in the off-season when the order quantity is still available. The orders of the terminal buyers are still large, and the fabric price can not rise at all. An industry and trade integration enterprise in Shengze said: "now there are not many monads. We also want to increase the price of grey cloth, that is, we can't go up. If the polyester goes up again, we can't afford it. If business is still so bad, we have the idea of reducing production or even having a holiday." It is understood that not only the boss in Shengze has this idea, but many bosses who transferred to northern Jiangsu, Hubei, Anhui and other places also began to act. "Stopping production and holidays can reduce inventory and relieve the pressure of high inventory." Only when we keep stocks down, can we have a day to catch our breath.

However, many manufacturers say that even if they lose money, they will not stop production, mainly because the workers are hard to recruit. Once the production is suspended, there will be a risk of the loss of workers. According to the data of China silk net monitoring, the loom start up rate in Shengze is 8-9 now, and the enthusiasm of manufacturers has declined.

Traders: do not blindly optimistic, see whether terminal demand can improve.

As we all know, Sino US trade relations have been divided into several rounds. Although Trump now says that it will no longer impose tariffs on Chinese exports, the risks remain. Trade friction is still unknown. Do not be blindly optimistic.

There are too many uncertainties in the foreign trade market, and the owner of the domestic trade is worried. "For our small traders, we can only buy some relatively small downstream buyers. Generally speaking, such buyers will have a lower price in order to ensure their own profits. Sometimes even the basic profits can not be guaranteed. The price is not easy to talk about. After arrival, there are various kinds of quality challenges. Not to mention payment, the payment will not be made in time. Payment in arrears for several months is a common phenomenon. Some may even be defaulted for more than six months. All say that traders are sandwich cakes, making money selling cabbage, and selling the white powder heart, this description is really appropriate.

Market demand ultimately depends on demand. Now many clothing factories and garment factories are in high inventory. Insufficient demand has also led to a slowdown in orders, and even some orders for garment factories are decreasing. Terminal demand is evident. In the second half of the year, if the demand for orders in garment factories and garment factories has not improved, the textile market will not improve. The list of traders will not be substantially reversed.

afterword

Whether it is a weaving enterprise or a trader, it is a grasshopper tied to a rope. What we need to do now is to understand each other and actively respond to the changing market situation. I believe that as long as we do our product well, we will survive this difficult period.