Grey Cloth Prices Rose But Raw Materials Rose And Demand Clogged.

Recently, a letter of proposal for raising prices of grey fabrics was suddenly appeared in my circle of friends. The general idea is that the price of raw materials will continue to rise, and all member enterprises will increase the price of grey cloth 0.5-1 yuan / meter. The rise is not small. After all, many of the profits of the billet traders are only a few cents, or even a few cents.

At the same time, Xiaobian found that in fact, the price of selling grey cloth in the circle of friends has already "secretly" increased the price.

From the end of March to April, raw material prices plummeted to a low level. Some of the specifications even fell below 5000 of the price. The price of grey cloth was selling at a low price in the environment of weak demand. Some of the larger social products even fell to the margins: 75D Chiffon fell to 2.20 yuan / M; 190T polyester Taft dropped to 0.70 yuan / M...

In late April, as the concept of chemical fiber protective clothing was heated up, a large number of markets emerged, which led to the rising price of raw materials. At a time, the price of FDY increased by more than 1000 yuan. Although polyester taffeta and spring Asia spinning also rose to varying degrees, the increase was far less than that of raw materials.

History is always strikingly similar. With the rise of raw materials in May, it is indeed "adding insult to injury" to the cloth boss whose profit margins are not high enough. In particular, heavy weight fabrics such as shading cloth, Oxford cloth, and so on, will cause greater erosion of profits. "We have recently received a 4 million meter large list. The raw materials have gone up in the factory, but we have already signed the contract. The original profit is a little bit, and it is eaten by raw materials at once." When the raw material goes up, a cloth boss replies.

It is understood that although the domestic demand market is recovering, many textile bosses still say that there are not many orders on hand, or even no orders, and orders are in the hands of textile owners whose quotations are low enough to exceed the market price. "We still haven't received orders yet. From March to now, there are very few orders. Although the domestic demand market is getting warmer now, after all, the recovery will take time, but it can not be compared with the previous orders. If there is no order, we may consider continuing to cut production or stop production." A textile boss said helplessly. According to data monitoring, as of May 23rd, the loom start rate has risen to 75%, although it has increased compared with the previous period, indicating that the market has really changed, but in May, the market can be called the stage of the market, but today's boot rate is slightly less than the previous off-season. Many textile bosses are still keeping factories running by lowering production rates. At the same time, it is far from enough to consume the inventory of current enterprises, no matter from the internal trade or the order of foreign trade, the contradiction between oversupply and market demand is very difficult to recede in the short term.

A trader told Xiaobian: "two weeks ago, we had 2 million meters of taffeta in our hands, because the profit of the finished product is still OK, about 0.5 yuan / meter, but now there is no order." In the past year, the fabric of the season has been "lone into the cold palace". Before the epidemic control, the epidemic prevention fabric gradually decreased.

The reduction of raw material orders is enough to prove that all kinds of clothing orders are lacking. Xiaobian originally thought that the order quantity of sunscreen clothing, summer dress and so on should have been restored to normal, but through various aspects, it was totally impossible to see the appearance of "hot". A lot of bosses complained to Xiaobian, because the backlog of orders caused by the shutdown of the epidemic broke out, and the factory capacity reached 100%. But after a long period of time less than 50%, nearly a month is exaggerated to 30% less than the original, there were 6 machines, now open 1, factories not single, workers do not work, some workers see the market is not optimistic, directly back home to find a way out.

It seems that the reason for the increase in price of the fabric is not much related to the increase or decrease in the order, but simply because the price of the upstream raw material is rising. What's more, there is a high inventory of grey cloth on the market now, many of which are being sold at a loss. Maybe the price increase can relieve the pressure of the present grey cloth factory.

At present, the global epidemic is still at its peak. On the demand side, besides the fact that some epidemic related products are hot, the rest of the traditional demand has not improved. However, there is a gradual expectation for the future in the market, which is mainly based on the overseas part of the release and the OPEC+ reduction. This is reflected in the polyester market.

However, at present, the actual demand is still in a jam state. On the one hand, the terminal bullets and looms were not fully started in April, and the raw materials inventory of the stocking was not digested. On the other hand, the demand for the finished products, whether domestic or exported, still decreased significantly compared with that of the previous year. According to the data released by the General Administration of customs, the export volume of textiles and clothing in 1-4 this year.

In the first quarter, the export volume of textiles and clothing dropped sharply compared with the same period last year, mainly due to the impact of the new crown pneumonia epidemic. In March, the European and American large-scale cancellation or postponement of clothing orders had a greater impact on clothing exports than textiles. The total export volume of textiles and clothing and clothing in the 1-4 months is still less than that of the same period last year, and the total export volume of clothing declined further compared with the first quarter, but the total export volume of textiles increased year by year. This is mainly due to the surge in export of anti epidemic products in textiles in April, which has increased the overall export volume of textiles, while clothing exports continue to be further affected by the epidemic.

In May, although some overseas countries have been unsealed, foreign trade orders may increase. The export of textile and clothing in the two quarter is expected to be better than that in the first quarter, but the impact of consumption or 3-4 month income is actually limited or limited. In addition, the 5-7 month is the traditional off-season demand, and the short-term improvement may be limited even if the demand is on the turn for the better because of the easing of the epidemic. In the medium to long term, if the global epidemic situation gradually alleviated in the second half of the year, the expected increase in supply and demand of crude oil will be overlooked. The textile industry may still have some expectations in the peak season of Jin Jiuyin ten.