When Raw Materials Skyrocketed To Textile Low Season: Orders Are Insufficient And Profits Are Diluted.

From the end of June to the beginning of July, the polyester market took a short "roller coaster". The price of PTA rose sharply, and the trading ended, then continued to fall. It was very exciting. The price fluctuation of polyester market often affects the industrial chain, especially the downstream weaving is highly concerned in the industry.

What is the situation of the downstream weaving Market after the industry fluctuation? Is there an increase in orders? What will be the overall situation in the second half?

01

Weaving market enters low season

Starting from April this year, the overall market of downstream weaving began to go downhill. The speed of fabric delivery was slow, and fabric suppliers' orders were insufficient. The recent wave of raw material prices has not lifted the downstream weaving Market.

According to statistics, at present, weaving manufacturers and traders have more executive orders, and most of them can be maintained until September. This wave of raw materials did not lead to a single volume of fabric and traders in weaving factories, and there was no obvious sign of improvement.

Shen Chun, chief weaving company of Chun Ya spinning, nylon spinning and four rounds projectile, said: "the general market is general this year, our order quantity is also general, mainly depends on the old customers to get the goods, the old customers are big, the quantity is good, the quantity is also bad."

Manager of Wujiang, a main weaving silk weaving enterprise, returned to SPH in March this year. The market was beginning to fade after the Qingming Festival. Now the fabric has arrived at no one's purchase.

02

Downstream business profits diluted

The rise and fall of raw material prices are directly affected by profits. The textile market is in a bad environment and is affected by the price of raw materials.

Wu Chung, a weaving company whose main business is a satin, replied: "the profit is not high now. The output of a loom is 230 meters a day, and the profit per mu is less than 0.2 yuan, and the profit of a loom is 20-40 yuan a day."

Manager Wang also said: "at present, the profit is very low. The price of 75D Chiffon dropped from 3.30 yuan per meter last month to 3.20 yuan per meter. Raw materials are rising. At present, these conventional varieties are in a state of capital preservation, mostly for maintaining old customers." According to the sample statistics of China's silk net inspection, the price of 75D Chiffon grey fabric began to plummet in February.

Weaving enterprises are affected by the price of raw materials and the market downturn. The price of grey cloth is difficult to rise and profits are diluted. The days of trading companies are also disappointing, and profits are falling. Trading company Li said that the profit of the order was about 15%, and it could reach 20% last year, and the repayment was slow, and many orders were owed for more than half a year.

03

When the off-season comes, there are still enterprises stocking up.

The fluctuation of raw material prices will bring some changes to the market to a certain extent. The price of raw materials has risen nearly 1000 yuan compared with the previous period. Recently, some enterprises in the market began to stock up. Traders began to purchase orders for conventional chemical fiber grey cloth, though the current phenomenon is not widespread.

There are hundreds of water jet looms in a weaving mill in Wujiang. At present, the machines are full and produce some conventional varieties. But the head of the company, Niu TSE, still buys some twill, spring and Asian fabrics and other gray fabrics to make stock for some weaving factories. Niu also revealed that at present, besides the inventory produced in his factory and the grey fabric purchased outside, there are 7 warehouses, about 4 million meters. "Now the price of grey cloth is still low. If you eat some products, even if you can't sell them now, you can sell them in the peak season of September and October. This regular product has a large demand and can always be sold."

In addition, a main enterprise of Nei spun spot enterprises, besides regular daily circular purchase of grey cloth, has recently reduced the weaving mill's handling of inventory, thus storing up more than 100 million meters. Feng said: "if we buy the goods every day, if the price of the cloth is low, we will buy more. If we sell it well, we will buy more, and ensure that each species has 100 thousand meters of stock."

In recent years, stockpiling has become a routine operation for downstream enterprises. Whether it is a weaving enterprise or a trader, it will carry out batch preparation, but the quantity of stock will be based on market conditions, financial strength and varieties.

04

The forecast for future market is divided.

It is said that this wave of polyester price inflation is speculation. Facts have proved that it is hype. There is no support for downstream orders. Polyester prices and production and marketing are hard to make. In the final analysis, the market of downstream weaving industry is fading, and the shipment of grey fabric is slow and small, and the inventory pressure of grey fabric is larger. At present, weaving costs are not affected by the price of raw materials, the inventory of grey fabrics is rising, and the market orders have not improved. All these have caused many attacks on textile workers. Therefore, there are many opinions about the future market. They are either empty or optimistic.

Wu said that at present, each stock of grey fabric is in the range of 10-30 million meters, and the individual varieties have exceeded 300 thousand meters. Over the past six months, the market is still warm.

Feng Zong thinks that in the second half of September and October, when the order is the most in a year, it is estimated that this year is the same. It will be better than the first half of the year, but it will not be particularly prosperous. It can only be said that there has been a turn for the better.

No matter what the market will be like, confidence is not enough. Adjusting the mentality is the most important thing to meet the second half with positive energy. Xiaobian always supports tens of millions of textile workers behind the scenes, and faces the changing textile market with everyone.