Weaving Enterprises Take Calmly To Deal With Raw Material Prices With Buying And Selling.

Compared with the heat of 2018, the textile market in 2019 seemed somewhat cold and cheerless, whether it was polyester raw materials or weaving enterprises, it seemed to become "Buddha system".

"Buddha" polyester raw material

Since the beginning of August, when Trump announced that he added 300 billion dollars and 10% customs duties in September (after some products were postponed to December), which led to a sharp fall, the price of polyester raw materials was like "stagnant water" in the following days, and fluctuated only in a very small range every day.

Take the PTA futures contract 1909 as an example. In July, on the 23 trading day, the time limit for trading or limit down was 6 days, which was more than 1/4, which can be said to be very stimulating.

But in August, in addition to the two wave of Trump's announcement of tax increases and later announced tax delays, the PTA futures lost almost no more than 100 points in the rest of the day, and became "Buddha" incomparable.

Weaving enterprises of "Buddha system"

Why does the price of raw materials become so "Buddha"? More because the downstream weaving enterprises have also become "Buddha system".

Over the past few years, when raw material prices have gone up and down, weaving in the lower reaches has always been the most exciting.

However, in June and July of this year, raw material prices were ups and downs. At the same time, weaving enterprises were more of a "cold shoulder to look at" attitude.

In the process of market visits, most of today's weaving enterprises also say that they will not hoard raw materials for a few months like the past two years. They are basically buying and using materials, and the raw material procurement cycle is shortened to 1-2 weeks.

Now, weaving enterprises see that raw materials have gone up, most of them are just looking at it. It is impossible to hoard goods and store goods. (of course, friends circle should be issued.)

"Buddha system" capacity retreats

Recall that in the 16 and 17 years, the traditional textile cluster of Jiangsu and Zhejiang Province just started to rewind the production capacity of water jet looms, which caused a uproar in the market at that time. It may be a bit too much to say "complaining", but some complaints are always indispensable.

This year, the regulation of water jet looms in Jiangsu and Zhejiang provinces has entered the stage of ending and sprinting. The number of water looms has not been slower than the previous two years. Unlike the past two years, the boss of the weaving factory is waiting for the government to evaluate and reclaim the workshop.

In the face of the closure of factories, the owners of weaving factories have become "Buddha systems". Anyway, the compensation is in place, and the loan is returned. The remaining money is stored in the bank every year to eat interest, and when doing the market, do business again and enjoy life.

Why are we all Buddhas?

The word "Buddha" was first used to describe young people who worked hard in big cities. They struggled for many years, but because of the high housing prices, they could not see the way to go. Finally, they became indifferent and indifferent to other things. Is this not the case in the textile industry?

For raw materials enterprises, the price of polyester raw materials is rising or falling, and the downstream seems to be out of stock. No matter the rise or fall, it is unlikely that the downstream weaving enterprises will be able to endure for a long time, and eventually become a stable state.

For weaving enterprises, raw materials will rise or fall, and the cloth produced will not be sold anyway. Money will be stored in grey cloth, and there is not much money to store raw materials.

For the boss of the weaving factory who is facing a retreat, it will be a bit reluctant for the factory to open for such a long time. But what can it do? Anyway, now the factory is tired and unable to earn money. It is very old. After the hard working years, it is very good.

So in the final analysis, it is still because the market environment is really bad, manufacturers do not have profits, and there is no demand downstream.

"Kim Gu" is right in front of us. Can we continue to "Buddha"?

September is the traditional peak season for textile industry. Although the market is going to be worse this year, people's basic clothing demand is there. The basic quantity will still be there every year.

As a matter of fact, from this week, orders for textile enterprises have increased significantly since the beginning of this week, and some of the dyeing factories have also seen a long time out of the "burst warehouse" news, and the market has improved.

Polyester raw materials, raw materials in the near future is more a kind of because the downstream weaving enterprises do not buy it, resulting in the "passive Buddha" state. At present, both PTA and polyester filament prices are in a very low position, and the average production and sales of polyester factories have also increased significantly over the first two months, which seems to be gaining momentum.

Perhaps in the near future, the price of polyester raw materials will start to rise. I do not know that at that time, weaving enterprises may hardly be able to "Buddha" again.