2019 Textile Raw Material Price Fluctuation Is Normal, 2020 Quotation Or Warming Up

Looking back at the market situation in 2019, most of the spinning factory owners are talking about the word "market cold winter". More and more textile people complain that business is becoming more and more difficult, operating costs are rising, sales promotion is becoming more and more difficult, and competition content is constantly refining.

Give money to sell! Orders to reduce the price of low dumping into small and medium-sized textile enterprises helpless

For small and medium-sized spinning enterprises, the reduction of orders is a common problem. "In the past year, we have received orders from cotton mills. But by the end of the year, inventories are still accumulating. The head of a spinning factory in Hebei regrets that many manufacturers are in the inventory stage at the moment, and even say that the cotton yarn is sold for money.

It is understood that in 2019, some small factories with a smaller volume and weak market contention were suspended for production. With the rise of the cotton textile market, some small factories resumed production and processed some small and micro order products. For enterprises in normal production and sales, there is no plan to increase production at the close of the year. One is that the market is changing again. The two is that orders are not abundant. The three is the end of the year, which has already passed the peak season of production and marketing of cloth clothing market, and the demand for raw materials has been balanced or slightly reduced.

Specifically, the production and operation status and plans of textile enterprises all over the country are also different. The driving rate of enterprises is based on the production status, such as the rate of private textile enterprises in Nantong, Jiangsu, which is about 5%~10% higher than that in Yancheng. The reason is that the textile industry in Shanghai and Hangzhou, which is close to Nantong, is relatively developed. Nantong has always been the main raw material supply side for such areas as cotton spinning, clothing, bedding, and so the market conditions are more favorable than that of Northern Jiangsu.

For some textile enterprises, the time before the new year is much more busier than usual. If you look closely, you will find that quite a part of the orders received in the textile market at the end of the year are foreign trade orders, because during the Chinese New Year holidays, they are actually working hours, and they are also the new year's day after Christmas. It is not surprising that foreign customers' holiday ends and the long overdue demand for fabrics is concentrated during this time. A jacquard and embroidery weaving enterprise in Shengze mainly exported to Arabia. It has just received an order not long ago. Now it is a busy time. Now, they are rushing to catch up with the order a year ago. It can be said that checking accounts, collecting money, maintaining customers and appeasing workers are the main tasks of most textile enterprises at present.

In addition, many enterprises in the market focus on the order organization in order to achieve a smooth transition before and after the festival. Yancheng Dafeng textile enterprises visit customers, negotiate business and sign orders. It is understood that the local textile enterprises order production has been arranged until the Spring Festival, the focus of work is the first quarter of 2020 after the Spring Festival production orders. The local production and marketing situation of the textile enterprises in the hands of orders have been arranged to April 2020, but the bulk of the order is smaller.

The game between raw material purchase and capital withdrawal is the choice of spinning enterprises: "let the bullets fly for a while"!

In terms of raw material procurement, the reserve of textile enterprises is still limited. At the end of the year, in the face of sudden changes in the prices of raw materials, they can also analyze calmly, rather than rush to make judgments.

Spinning enterprises have different plans for how many raw materials they prepare, but there are not many enterprises intending to increase their inventories. Zhu Hong, head of the main weaving plant of Chun Ya spinning and polyester taffe, said that after repeated fluctuations in raw materials this year, the price of raw materials will not be released for the first time. If it is not continuously rising, it will not change plans and buy more raw materials. Wu, the head of another Nantong weaving enterprise, also said that the price of raw materials is not stable recently, and it is unclear whether prices will really rise, so they will also choose to wait and see. Today's textile people often choose to "let the bullets fly for a while" in the face of rising prices of raw materials.

At present, enterprises that choose to enter fast selling rapidly are still in the majority. The survey shows that it is quite common to reserve raw materials for 30 days ~45 days. Because the production transfer after the Spring Festival, there are not many special arrangements for enterprises to increase inventories. As long as there are orders and funds on hand, it is not a problem to organize raw materials on board production in real time.

At the same time, for most textile enterprises, this year's market is not as good as expected. The upstream and downstream capital chains of textile industry are very tense, so the accounts period is much longer than in previous years. Shengze, an annual output value of 20 million yuan, the main producers of printing products traders Hu general complained that this year's account has been extended from one month to three months in the past year, now is almost new year, but there are still 1 million of the accounts did not receive back, do not know how much money before the new year can come back.

Friction between China and the United States is a good omen for the 2020 textile market.

In market research, textile people generally believe that in addition to excess capacity, Sino US trade friction is the main reason for this year's poor market, and recently there is good news about Sino US trade.

Recently, China signed the first stage economic and trade agreement with the US side. According to the information previously disclosed, when the agreement is reached, there will be a certain percentage of exemption from tariffs imposed by the United States before trade friction. In 2019, although Sino US trade frictions had also experienced several mitigating situations, the United States eventually reversed itself, without substantial progress. And the agreement reached is different. The exemption of tariff increases can be said to be real.

In addition, the inventory of grey fabric manufacturers is larger this year, and another main factor is that there are more stock in downstream garment industry. Due to the anticipation of the cold winter in the previous year, most clothing enterprises have hoarding a lot of winter clothes, and coupled with the warm winter this year has led to the further down sale of down garments and cotton clothes, and the clothing industry is afraid to store up goods to the upstream, causing the imbalance between supply and demand of grey fabrics.

In 2020, new spring and summer costumes are being prepared. Unlike the down jacket, spring and summer fashions demand higher style, so they need to re play and purchase. Therefore, the rigid demand for fabrics still exists. "At present, our orders have been received in April, all of which are simulated silk fabrics. Recently, there are not many stocks in the factory. They are busy making fixed fabrics. Next year they will start to imitate silk or raise their points." A textile owner with hundreds of looms in Shengze said.

For the new year's market, in spite of the big market situation in 2019, textile enterprises, though not too optimistic, are also full of hope. (source: China Textile Press, cloth factory)