The Rise Of Grey Fabric Price In Peak Season Has Become A Common Phenomenon

The new year's atmosphere has not completely faded, textile people's business has been in full swing! Since the fourth day of the year, many large chemical fiber raw materials factories have started normal production and sales, with hundreds of trucks per day, and it is very common for orders to be arranged after a few months; on the eighth day of the year, most weaving enterprises also began to open their doors, and the order situation was gratifying.

"New Year's first order, 60000 meters 240 spring Asian textile delivery..." A textile man's circle of friends revealed the first day of work in the year of the ox. And we can see that not only some real orders have been placed, but also many inquiries. Not only this textile enterprise, many textile enterprises have it on the first day of the new year

During the Spring Festival, although the national textile market nearly closed, but the foreign market did not close, there are still a lot of quotations, orders. This is why many enterprises bought grey cloth on the first day, but there is still a question. That is why most of the printing and dyeing factories have not yet started because the workers from other places have not returned. Why are textile enterprises eager to buy grey cloth, after all, there is no place to process them? In fact, one of the important reasons why trading enterprises are eager to buy grey cloth on the first day is that the price of grey cloth is about to rise.

The rise of grey fabric price has become a common phenomenon

In recent days, in addition to the new year's greetings, the most frequently seen in textile people's circle of friends may be all kinds of notices of price increase or preparation for price increase.

All textile enterprises generally raise prices around 0.1-0.2 yuan / meter, but there are also increases of 1-1.5 yuan / meter. Around Taihu Lake shade cloth home textile chamber of Commerce, hundreds of enterprises group up to raise prices, the price space is far more than other textile enterprises. However, due to the high price of shading cloth, often more than 20 yuan a meter, so the increase is not big.

However, in terms of the scale of price increase, more than 100 enterprises have raised the grey fabric price at the same time, which indicates that the grey cloth market has gone out of the low price in 2020 and has begun to rebound.

Cost drives grey fabric up

Fabric prices are usually affected by the cost side or demand side of the impact and change. Recently, although the overall performance of the textile market is better, the raw material end and the weaving end have different degrees of goods, but it is obviously too early to say that the textile peak season is coming. On the one hand, most of the printing and dyeing factories have not entered the production state, and the quantity of the dyeing factories that can reflect the market situation is not clear; on the other hand, even if there are many orders at present, they are likely to be overstocked orders before the year, and the order market after the year is still unclear.

So the demand side is not the direct driver of the fabric price hike, so the only remaining cost increase. In fact, it can be seen from the notice of price increase of various textile enterprises that most of the enterprises mentioned that the recent price rise of raw materials has pushed up the cost, and the textile enterprises are also forced to raise the price.

However, out of the demand side, just because of the rising cost, how long can the price rise last?

Crude oil drives raw materials up

The rise in raw material prices is mainly due to the soaring national oil prices during the Spring Festival. The main reason for the rise in international oil prices is that, affected by the unprecedented Arctic cold wave on February 15, the temperature in most parts of the United States dropped sharply and the energy market was in chaos. Dallas, Houston and other cities in turn cut power in large areas, and the surge in heating demand has pushed the power grid to the limit. The sub zero temperature in Midland, Texas, reduced shale gas production by 1 million barrels per day, pushing oil prices to a new 13 month high, with us oil breaking through $60 per barrel. Cold weather may also trigger a rush to buy fuel. Heating oil futures rose more than 2% and natural gas rose more than 3%.

The rise of textile raw materials after the festival is a supplement to the oil price surge. However, the cold wave in the United States will eventually be over, and the oil price will lack the power to soar. It is also very difficult for our textile raw materials to produce a sustained impetus, and the price of raw materials will eventually return to a stable level. Moreover, many enterprises in the fabric market still have a lot of inventory of low-cost raw materials last year, as well as a large number of low-cost raw materials purchased years ago. Therefore, many enterprises are eager to digest the inventory and do not follow the trend of price increase.

In all kinds of "rising" voices, we also need to be calm. After all, before the market is substantially improved, price increases will only lead to price without market. At the same time, enterprises maintaining the original price may make the market more competitive.