Orders Hit Hard At The End Of The Year. What Is The "Closed Door" In Textile Market?

Raw materials continue to rise, dyeing factories keep on catching orders, traders are busy with delivery. If judging from the current situation, I believe most people will feel that this year's textile market is very good.

But as we all know, this year's textile market can be said to be the worst in recent years, and many textile people complain incessantly. But by the end of the year, the market seemed to be "getting better". What is going on?

Raw materials prices rise, orders can not be completed, textile market ushered in "closed door red"

Starting from December 11th, polyester raw materials opened up a wave of growth. As of December 19th, the largest increase in polyester FDY rose nearly 400 yuan / ton in nearly a week.

Printing and dyeing enterprises also showed a busy scene. With the coming of the new year, printing and dyeing enterprises have issued holiday notices, but on holiday notice, we can find something different from the past. From the following notice, we can see that some printing and dyeing enterprises have begun to ask for delivery. It is the only thing that happens before the peak season in the dye factory, that is, the explosion of the warehouse, the queuing, and the pick-up of goods.

Some traders also have similar signs of real warming, such as silk, memory, and four rounds. Due to the delivery date of some orders years ago, as the vacation time is getting closer, it has become the busiest time for some textile workers in a year. In particular, imitation silk, which occupies the "C position" at the end of this year, said Wu, the head of an old simulation silk production company. Their orders may not be finished this year, or even to the next year.

When the holiday is limited, the demand will erupt at the end of the year.

Sino US trade good

On the 13 Friday, after the joint efforts of the Sino US economic and trade team, the two sides reached agreement on the Sino US economic and trade agreement on the basis of the principle of equality and mutual respect. On the evening of 20, the two heads of state of China and the United States exchanged telephone calls to ease differences.

Textile people generally believe that Sino US trade friction is the main reason for the downturn in textile market this year. The trade friction can be eased. Although the new orders can not be brought in a short time, the confidence in the textile market next year is definitely a great boost. Affected by this, textile workers are becoming more decisive at the end of the year.

New year's Eve dyeing factory limited production

On the morning of 17 July, the Wujiang district government held a special action plan to "sprint fifteen days and strive to increase the blue sky". The stereotype machine in Shengze was limited to more than 50%. From past experience, unless short-term documents are needed, the short-term closure will have little impact on the textile industry. But unfortunately, because the new year's time is earlier this year, the "dead line" at the end of the year is more than half a month ahead of the previous years. These two things have come together. The period of printing and dyeing that was not enough has become more intense.

Demand has always been there, but at the end of the year, there was a concentrated outbreak.

In fact, the demand for conventional products in the market has always been there, but it has been concealed by the excess capacity in the past two years. At the end of the year, textile enterprises stocked the market in the coming year, which was originally a "routine operation". However, these orders came out at the end of the year, and the impact on them was very large.

In addition, there is also a certain psychological effect. After all, the current market is not as big as it was in the past years, but it is "stand out" compared with the rest of the year.

Behind the "closed door red" is a bit "empty".

Through market visits, it is found that such a prosperous market is still somewhat "empty", hidden in it.

The downstream is not buying up the price.

From the market survey, we found that part of the weaving enterprises have low acceptance of the price of raw materials. Such weaving enterprises generally produce conventional products such as spring Asian spinning, polyester taffeta and so on, and lack stable customers to digest their capacity.

Such enterprises in the textile market are quite numerous and also the main source of raw materials. For this kind of weaving enterprises, the pressure of funds and the pessimistic judgement of the market will make them not buy the price of polyester raw materials.

The fact is also true. In terms of production and marketing, according to the data monitoring of China's silk net, the price rise of polyester in December 11th has led to a wave of production and marketing, but since then polyester production and marketing have fallen into a more doldrums.

In terms of price, by the beginning of December 20th, the rise of polyester filament was stopped, and prices began to stabilize, and PTA, ethylene glycol and other raw materials even began to decline.

Inventory is still a big problem.

In terms of polyester stocks, although the polyester plant has increased production efforts recently, the stock of polyester factories has decreased slightly, but it still exceeds 20 days. After investigation, it is concluded that the holiday time of weaving enterprises is generally around New Year's day. As the time of the holiday is getting closer and closer, the weaving enterprises have already finished their stocking at the end of the year. The production and sale of polyester factories in the near future may have a big decline, and will also go back to the stage of tired inventory.

The weaving factories showed obvious polarization. Orders were slightly warmer at the end of the year, although the textile enterprises had removed a part of the inventory, but only limited to imitation silk, imitation memory and some other products. For spring Asian spinning and polyester taffeta products, inventory problems are still more serious due to overcapacity. Excessive inventory will have adverse effects on the production and sale of weaving enterprises in the coming spring, and it will take longer for the textile market to really warm up.