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    Polyester Filament Prices Fell 35%, Grey Cloth Fell 20%, The Epidemic Is Fierce Market Difficult.

    2020/3/25 9:55:00 2

    Polyester FilamentGrey Cloth

    The US stock market plummeted on Monday, the Dow fell to the 19000 point mark, and the S & P 500 index was cleared all the way since Trump took office. At the same time, many stock markets such as Asia Pacific, Europe, America and so on are also in a state of panic. The US stock market has officially bid farewell to the bull market and has experienced four fuses in the past two weeks.

    This war extends to all industries. For the textile industry, in addition to fall or fall!


    Raw materials are falling too fast, like tornadoes! Textile boss: death!

    Due to the perfect transition between the shortage of production capacity and the shortage of supply, the new contradiction has been fermented again, and the pressure of the domestic textile market has doubled. One aspect is the decline of raw materials and the drop of no bottom line. The textile boss is very disturbed: every day, he receives the notice that the price of raw materials factory falls, and it is numb.

    Compared with the same period last year, the price of the raw material market has been "desolate". The price of polyester filament has been declining continuously, and it has hit a low level in recent years, and the price of its products is approaching 25%--35%.


    The most direct factor is the crude oil slump. In 2016, oil prices reached a minimum of $26.12 / barrel in February, because OPEC could not agree on the issue of reduction in production.

    Four years later, the OPEC led by Saudi Arabia and the non OPEC countries led by Russia are divided on the issue of production reduction. Crude oil prices are constantly dropping down. In addition, many countries and regions in response to the impact of the new prevention and control measures against the outbreak of the new crown pneumonia, and the current production reduction agreement is about to expire at the end of the month, the international oil price has dropped sharply, which has reached the low level of 20 US dollars / barrel.

    As the most upstream product of the entire textile industry, crude oil prices have fallen sharply, resulting in the collapse of PTA and MEG. Polyester filament is also doomed to bad luck, and prices are constantly dropping.

    Grey cloth fell at 10-20%! Textile boss: crash!

    In March, in the face of the rising price of polyester filament, many textile bosses looked forward to the price drop and reduced the cost of weaving. But in the face of such a "waterfall" crash, the textile boss called out: "don't fall down, fall down again!"

    According to the analysis of sample data from China's silk net, before the Spring Festival of 2020, the raw material storage period of weaving factories was about 20 days. From the perspective of the production and sales trend of polyester filament, the production and sales in March 3rd were broken by 100%, while the remaining average production and sales remained at a low level of 4-5.


    It can be seen that many textile owners are producing raw materials before the new year or early March. Therefore, the price of raw materials for production is higher than the current price.

    The current sales environment comes from two pressures: on the one hand, the price of raw materials is constantly dropping, causing customers to press down prices; on the other hand, poor demand, the domestic and foreign trade markets have spread bad news, the new single is not smooth, and the previous orders have been canceled, and so on, which has led to the beginning of the market tired inventory. Based on the anticipation of panic in the market, cloth boss took a price cut to advance inventory.

    "Customers have called more enquiries this week, but the order is obviously not as good as the beginning of March. Now the raw materials have fallen, and our products have generally fallen by about 0.20 yuan / meter, and some stocks have fallen even more. Although these are produced by high priced raw materials, we have to fall! " A silk imitation boss Wang said.

    At present, 210T polyester taffeta dropped from 1.30 yuan / M last year to the current 1.10 yuan / meter, or 15%.

    75D has light color Ding from 2.30 yuan / meter to 2.10 yuan / meter, or nearly 10%;

    A textile boss said that the decline of grey cloth far exceeded the cost of raw materials, which led to the lack of profit space and entered the "production deficit of one meter per meter".

    The terrible price drop is worse than the price drop: the customer has stopped production.

    Low cost of raw materials, cost collapse and lack of profits have become a headache for textile owners in recent years. The curse of the foreign market caused by the epidemic also brings new drag on the current textile market.

    In recent years, a large number of famous brands have announced a shutdown: Hermes, Gucci, Chanel, Patek Philippe and other world-renowned brands have all announced the shutdown. Many well-known foreign clothing brands such as ZARA also announced that they closed overseas stores. Foreign demand was blocked, resulting in the recent cancellation of orders and the arrival of suspension.

    As early as the start of the project, foreign merchants who had placed orders before the earliest time were also following up the reminder, requiring the suppliers to complete the order as soon as possible, but the result was that when the enterprise rushed to complete the work, the notice of cancellation of the order was suddenly received the other day. This has become a common disease in the industry.

    "Before pushing the delivery, it was not easy to drive out the order from the printing plant, but it was too hard to say that it would not happen. I don't know if customers want to cancel or is it too hard? " A trader reluctantly said.

    More than just foreign trade enterprises, the domestic market also encountered many difficulties. At present, the major professional markets in China have been slow to recover, and many textile enterprises have entered the stage of not many orders or even no orders. "Now that we are in a dilemma, it is easy to face losses or cancellations, and there is great pressure from all sides. We hope that we will have a new turn through 3 and April."

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