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    Order Cancellation + Raw Material Slump + Low Price Throw! Textile Bosses Face "Three Crit"

    2020/3/26 11:47:00 0

    Textile Market

    Us shares opened up 7%

    On Tuesday, March 24th, the opening day of the US stock market continued to extend the roller coaster mode for several weeks. The Dow Jones industrial average rose more than 1200 points on the 24 day after falling nearly 600 points on the 23 day. In addition, the standard & Poor's 500 index and Nasdaq index rose more than 5.5% after opening soon.

    US stocks moved out of the epic level, but crude oil, PTA and ethylene glycol did not keep up with the rally.

    On the 24 day, New York crude oil futures rose 0.65 US dollars in April, tied 24.01 yuan / barrel, and Brent futures rose 0.12 US dollars in May, settling 27.15 yuan / barrel.

    PTA, ethylene glycol, futures opening performance is not good, still maintain low shock finishing pattern. Crude oil, PTA and ethylene glycol still lack driving power under the good stimulus. The key reason is that the downstream polyester market is basically weak.

    Polyester market below the bottom price

    Polyester filament, as the mainstream product of polyester market, has been devastated in the "battle" before, and its price directly refers to the "floor price". Starting from 2000, the price of polyester filament began to fall in a waterfall style, based on the high storage of polyester filament and the serious shortage of downstream demand. Up to now, the prices of polyester filament products have been declining continuously. The manufacturers have many preferential promotions. The price of FDY products is about 5950 yuan / ton, the price of POY products is about 5450 yuan / ton, and the price of DTY products is around 7500 yuan / ton.

    Polyester production and marketing has been in a downturn in recent years, the price is also down, and has fallen below the low level in recent years. Every time it thinks that it is near the base price, it can still fall again, and market confidence has been severely hit.

       9 million meters, a brand order was canceled.

    The foreign trade market of Jiangsu and Zhejiang is seriously blocked.

    Polyester market prices fell to the sky, the main reason is poor market demand.

    "Foreign trade" has become the most popular word in the near future. As foreign epidemic situation is out of control, foreign trade orders are no longer "a piece of cake" but a question of "yes or no".

    According to the news, 78.4% of textile enterprises indicated that orders were decreasing after Shaoxing Keqiao resumed market, and 64.8% of enterprises reflected the cancellation of existing orders. The largest proportion of cancelled orders is still foreign trade orders.

    According to statistics, the number of confirmed cases of the global new crown has exceeded 400 thousand cases, the most serious in Italy, the United States and Spain. Last week, cloth boss revealed that orders from Italy were cancelled and orders from South Korea were canceled. Of course, this is only the tip of the iceberg.

    "This year's business really did not know how to do it. After that, it didn't receive any bills. Our next door market has not been opened yet. Anyway, no business. I have a friend who makes foreign trade in Hangzhou. A few days ago, orders for a brand exported to Europe and the United States for one or 9 million meters were cancelled. The market was so bad that they had already rested on the two day, and nearly 60% of Hangzhou's foreign trade was closed. A trader reluctantly sighed.

    Take Hangzhou's foreign trade as an example: in 2019, the total export volume of Hangzhou was 361 billion 270 million yuan, second only to Ningbo and Jinhua, ranking third in the province. Affected by domestic epidemic, in 2020 1-2, the total foreign trade import and export volume of Hangzhou was 73 billion 280 million yuan, down 9.5% from the same period last year, and the total export volume was 43 billion 130 million yuan, a decrease of 16.4%, of which the processing trade was greatly affected, and the total import and export volume of processing trade was 7 billion 770 million yuan, a decrease of 27.3%. The total export volume in February was the most obvious, with a drop of 60.6%.

    Hangzhou's foreign trade is a microcosm of the national foreign trade market, but it also sounded "alarm bell" to the market, internal and external troubles, and how to break through the predicament in the foreign trade market.

    Foreign trade market prospects are worrying, domestic demand and volume prices are falling, so many cloth owners have come up with the idea of lowering production and protecting prices. According to the statistics of China's silk net, at present, the opening rate of looms in Jiangsu and Zhejiang provinces is around 8, while grey stock is around 40 days.

       Earlier, Trump said the new crown pneumonia epidemic could last until 7 and August. If the spread of foreign epidemics is serious and there is no basic control, the textile market will be severely affected, and the inventory of grey fabrics will further increase. At the same time, prices will also be further lowered under the background of homogenization competition.

    The good of the financial market can stimulate the market trend of textile market to a certain extent, but the most important thing is the demand of terminal clothing. Whether it is the US stock market or the global financial futures market, the most influential factor is the continuous fermentation of the new crown pneumonia epidemic, which has led to the closure of various countries, the stagnation of logistics and the slack of demand.

    The textile industry as an important part of the global economy, the trend of the financial market will inevitably have an important impact on it. For this epidemic, the bad will be the most direct. But the occasional retaliatory rebound of US stock and global stock market is still very difficult to support the current textile market effectively.

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