The Market Has Gone Up And Down. The Textile Market Has Gone Through "Two Days Of Ice And Fire".

Recently, a friend who made a product cloth spot complained to Xiaobian that in the past two years, he had more than once felt that he was not like a cloth seller. Instead, he looked like a speculating trader. Watching the price of grey cloth every day was just like watching the stock market.


For more than a decade, cloth has never seen such a market.


The finished product spot is a traditional business in the textile market, and generally assumes the role of a middleman. Xiaobian's friend also began to do it very early. Now it has been more than 10 years, only a few regular varieties, a dozen regular products, each variety has been prepared for hundreds of thousands of meters, and the total inventory is almost 5 million meters.


According to him, let's not see that the cloth of 5 million meters now seems to be a lot, but the person who makes the finished product is not ready for millions of meters. It is normal for a small scale enterprise to stock tens of millions of meters. Some of them own weaving factories, some do not, but even if they have their own weaving factories, the products they produce are only a small part of their sales, and they usually place orders to the weaving enterprises according to the market rules seasonally.


In one go or two, they earn a slight price difference by relying on the advantages of scale and the price fluctuation in the peak season. However, because it is a conventional product, the profit margin is not high, which is purely a running amount of work.


But from last year, things seem to have changed. It seems that the market has become too fast for people to understand.


One heaven, one hell, two textile markets.


From last year to this year, the textile market has gone through the "ice and fire".


In the first half of last year, because of the regulation of water jet looms in Jiangsu and Zhejiang provinces, the new production capacity had not kept up. The capacity of conventional products had been greatly compressed, resulting in a shortage of conventional "rotten cloth" such as spring Asian spinning and polyester taffeta, and even the phenomenon of "one cloth hard to get", and the price of grey cloth rose sharply under the influence of supply and demand.


Starting in July last year, with the rising price of raw materials PX, PTA and polyester filament, the price of grey fabric increased again with the support of raw materials.


If we use one sentence to describe the cloth price of last year, it is not the highest, only higher.


But this year's situation seems to be against last year.


Beginning in mid April, the peak season in the first half of the year was half a month earlier than before. Weaving factories began to accumulate inventory in advance, because inventory pressure led to tight capital chains, and the phenomenon of selling goods was common. When textile people generally believe that the price of grey cloth has dropped to the bottom of the valley, it has been hit hard by reality.


Since July, the price of PTA and polyester filament has plummeted, causing the price of conventional products to drop further. Now, because of the coming of a new round of PTA production, the market is looking at the raw materials of polyester.


Such a big market, textile people really can not afford to live.


The consequences of such a sharp drop in the textile market can be said to be destructive.


Take the Xiaobian's friend who made the finished products as an example. Last year, the business was very good. At the same time, the list of weaving factories that he often worked with was simply too late to do so. He had to queue up for a few months later. But this year, the cloth price dropped nearly 1/3 from the beginning of this year, and the inventory value of the 5 million meters dropped from nearly 15 million to about 10 million. Not only did the price drop, but also the volume of the turnover was reduced. It was originally a small profits but quick turnover business. Now it is like selling stocks.


This is also not good news for weaving enterprises. The manufacturers generally assume the role of a buffer in the market. They will place orders for the weaving enterprises ahead of time in the off-season, and transfer part of the inventory of the weaving enterprises to their own hands, which is to help the weaving enterprises to reallocate part of their inventory in advance and alleviate some of their financial pressure.


But once this year's situation, cloth prices plummeted, inventory cloth day by day. Under such circumstances, the willingness of the spot traders to place orders will naturally become lower. The orders in the weaving enterprises' hands will become less visible, and the stock will inevitably be in their own hands, and the capital chain will become increasingly difficult.


Today's textile people earn money in selling cloth, and they are always watching the price of raw materials and cloth. They hope that it will not rise again last year when raw materials go up.