Textile Market Partial Recovery, But Weaving Market Overcapacity Is Still "Neck"!

How much is left in 2020? one-third! For the textile people who have gone through the "most slack season" for more than half a month, the painting style of the recent market is a bit elusive, but there is no doubt that part of the textile market is picking up!

Raw material end

Early bad smooth, polyester factory pressure delayed!

Entering the last week of July, the raw material market also showed some performance. In addition to maintaining a small rise in prices, production and sales are the best proof. The average production and sales of mainstream manufacturers increased from 40-50% in the early stage to 60-80% in the early stage, and even more than 100 quotations appeared at the end of the month. The inventory pressure of polyester manufacturers was transferred to downstream production enterprises again.

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According to the monitoring data of China silk capital network, as of July 31, the overall inventory of polyester market was concentrated in 30-39 days; in terms of specific products, POY inventory was up to 10-15 days, FDY inventory was around 21-28 days, and DTY inventory was about 29-39 days.

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According to an industry source, some large factories have said that they may reduce the preferential policies or even cancel the promotion in the later stage, which to a certain extent also drives the mentality of bargain hunting in the downstream market. Since entering the off-season, the downstream weaving manufacturers have been cautious in purchasing raw materials, and dare not put funds into the raw materials end at will, and the raw materials purchased in the early stage are not used much, which also leads to this wave of market.

Whether it is the stimulation of "yangmou" of polyester manufacturers or the just need of weaving manufacturers, this wave of purchasing really makes polyester manufacturers with high inventory breathe a sigh of relief! "Polyester manufacturers in the early negative should be smoothed off, the next wave of polyester factory pressure may be delayed to the fourth quarter." One professional said.

Trade side

Domestic and foreign trade orders have been issued, elastic fabric performance eye-catching

In late July, the textile market broke the shackles of "off-season", and good news was once heard from the market. Many textile owners said: "this wave of market was caught off guard, and finally let us go some goods!"

According to the monitoring data of China silk capital network, the trading atmosphere of Jiangsu and Zhejiang markets has improved compared with the previous period, and most transactions are focused on autumn and winter fabrics. Both domestic and foreign trade markets have certain performance, especially the domestic market.

"From the end of the Dragon Boat Festival to last week, the market is really weak. Sometimes I sit in the sales department for an afternoon, and there won't be a call to purchase gray cloth," said Shen, who does the four side elastic fabric. "But this week is totally different. I have received calls for gray cloth in the early morning. Here it is 20000 meters, and there is 50000. Recently, the inventory in the warehouse has gone Bo, and some orders need to be ordered and queued. "

In addition to good elastic performance, other conventional autumn and winter fabric orders are better than in the early stage, such as Shumei silk and gallbladder cloth used for lining materials, warp knitted suede and plain cloth for sand release. In addition, medium and thick clothing fabrics also have certain performance, especially after special finishing process, which is used to make down jacket, cotton clothing and other fabrics, market proofing and sample performance Better.

It can be seen that the market has indeed released a positive signal, whether it is the price of raw materials or orders issued in autumn and winter, at least the social inventory has been rising steadily in the early stage. In the interview and research of Xiaobian, the rise of grey fabric inventory of most weaving manufacturers began to slow down or the production and sales could be leveled off, and the inventory of a few manufacturers producing marketable products decreased slightly, which also boosted the confidence of market participants.

Overcapacity is still "stuck", textile market overall recovery is still worrying

For this wave of market, there are a few textile owners think: the market ahead of time, I do not know is good or bad!

According to the traditional practice, June and July belong to the traditional off-season of textile, and the phenomenon of load reduction and accumulated inventory in the market is also relatively common.

The difference between this year and previous years is that some enterprises have experienced the state of "low demand and high load" in the second quarter, and their own inventory has accumulated to a high level in recent years, and the pressure of capital is greater. Therefore, in the middle of June, the operation of rotation and holiday in the market is accelerated. The load of main clusters in Jiangsu and Zhejiang has been hovering around 60%, and the lower one is about 40%.

In the face of the current wave of market, the enterprises with better order receiving started to operate at full capacity, and the enterprises with general order receiving delayed the holiday plan to prepare for the market in August and September, resulting in a small increase in the market starting load.

According to the monitoring data of China silk capital network, the recent start-up of water jet looms has risen to about 70%, warp knitting has started at 70-80%, and the performance of circular knitting machines is slightly worse, at about 40%. Compared with last week, it has increased by 4 percentage points. Compared with the same period last year, the difference is not big.

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It can be seen that if the market situation in August is positive, it will only aggravate the negative trend of production capacity.

After all, the textile industry still faces the impact of the slow growth of the foreign trade market, especially in the case of the slow growth of the foreign trade market It is very easy for foreign trade activities to be suspended again.

In contrast, after the "two sessions" in China, a new development strategy began to appear in everyone's view, that is, "we should gradually form a new development pattern with domestic big cycle as the main body and domestic and international dual circulation promoting each other". It can be seen that China's economic structure will undergo a new round of great transformation. The domestic trade market with a huge consumer group of 1.4 billion has been mentioned frequently In terms of textile industry, it is beneficial to promote.

"At present, the volume and requirements of domestic first-line brands for fabric procurement have actually exceeded the orders of foreign countries. This year, it is better for us to receive orders in the domestic market, and it has not been reduced because of the epidemic situation. Therefore, I think the domestic market is still promising!" Zhao, a textile trader, said.

Generally speaking, today's textile market is standing at the crossroads. Whether the market is getting better to the left or weakening to the right is not predictable. In the current situation of coexistence of multiple spaces, textile enterprises need to reasonably arrange funds and inventory according to their own orders.