Textile Market Is Still In The Doldrums: Grey Fabric Inventory 10% Growth, Fabric Prices 20% Decline

The first half of 2019 has passed, and the overwhelming majority of textile people's biggest feeling is that this year's market is really not good. Of course, there are very few individuals doing well, but it is difficult to promote the entire textile market, or is difficult to be fully promoted. However, there are signs of improvement in the textile market recently. The rate of start up of weaving factories is beginning to rise, and orders are beginning to come out. What is the specific market situation?

Textile stocks rose sharply and prices plummeted.

At present, the overall textile market is still not out of the haze of the off-season, inventory is still at a high level, and the growth rate of inventory is also exceptionally high. According to the growth rate of textile industry inventory released by the National Bureau of statistics, the first half of 18 is still relatively stable, with the inventory growth both year-on-year and three consecutive months. But from the second half of 18, the growth rate began to lose control, even in the three or four months of the traditional textile season, inventory is still growing. Wait until the summer textile off-season, but also for four consecutive months, the inventory grew by more than 10% over the same period.

High inventory is not horrible, and the fear is that inventory growth is not low. Actually, the reason behind it is the serious "oversupply". The textile industry chain is running at a high speed, but the demand for the terminal customers is lagging behind. Another phenomenon follows: textile prices are flying down.

From the past two years, the National Bureau of Statistics announced the changes in the prices of chemical fibers, cotton fabrics and corresponding printing and dyeing finishing prices, we can see chemical fiber fabrics and cotton fabrics. The prices of these textile fabrics, which we used most frequently, ended this year. The growth trend began to decline sharply compared with the same period last year, and the drop was strong. There was no sign of a rebound in September.

According to the feedback of the head of a simulation silk weaving mill, they have nearly 1000 looms, catching up with the bad market this year, resulting in their stock being particularly high. Taking 75D as an example, the inventory of more than 1 million meters of grey cloth is now, though the price has dropped to nearly 3.8 yuan / m from nearly 5 yuan / M last year, but the order is still very scarce.

The price of conventional silk is bottomed out.

Textile high inventory and low prices make some textile people worried about the future, but also let some people see hope. Taking advantage of the price of raw materials, grey cloth prices and dyeing fees are not high enough to enter the market, and wait until the market gets warmer and sell at a high price seems to be the best way to deal with the current market. In fact, many people in the market have already acted.

The most miserable fabric this year is second. It is estimated that no other species will dare to say the first. 75D 24T Chiffon dropped from last year's 3.3 yuan / meter to 2.6 yuan / meter, 75D 75D from 4.8 yuan / meter to 3.8 yuan / meter...... The price drop of all kinds of imitation silk was mostly around 20%, and the price almost returned to three or four years ago. Therefore, the textile people who have searched the bottom mostly start with this kind of fabric. Until next spring and summer, the price of the silk fabric will pick up when it gets warmer.

According to a textile enterprise in Wujiang, they have a thousand grey looms in the field. At present, 75D Chiffon is popular, and nearly 200 thousand meters per day. Customers are basically doing spot goods, that is, taking advantage of the low prices of all aspects to come to the bottom, and then slowly sell the finished products.

Hot T400 fabric, another form of bottom reading.

Of course, not everyone recognizes the prospect of silk imitation. After all, the stock of this kind of fabric is too large at present. The speed of inventory in the downstream market is difficult to shake up the total inventory, and the driving force of price recovery is relatively insufficient. The money in the textile market should always have a place to go. Where is this place to go?

In fact, the recent hot T400 is a textile investment. Why is T400 chosen? The main reason is that compared with other raw materials used in fabrics, the raw materials of T400 are limited and the quantity of raw materials is limited. That is to say, this year you have more than 1 million meters of T400 in your hands and 1 million meters in other people's homes. Coupled with the excellent performance of T400 fabrics, the number of orders is very high every year during the peak season. The limited supply corresponds to the unlimited demand, which is bound to be a rise in fabric prices and profits.

Entering the market is one of the ways to solve the current textile market, but to some extent overdraw the future textile market. It may lead to further reduction of orders in the future, all kinds of fabric inventory will continue to increase, prices will continue to decline, and the fabric from the bottom will probably be converted into stocks.