The weaving industry is really booming recently! The downturn in the textile market for many years has caused practitioners to gradually lose confidence and see no hope. However, I don’t know when the breeze in the textile market came inexplicably. From rags and polyester taffeta out of stock to imitation silk, spring is ushering in, the inventory is cleared, and goods are being delivered… Many cloth bosses have begun to lament that this market situation Come as you say.
Of course, everyone loves to hear that the market is going well. But what the author wants to say is that since last year’s G20, there have been constant price increases caused by raw materials and auxiliary materials and environmental protection regulations, and industry chaos has begun to ferment since then. Is there real demand in the weaving market today or is there another reason? Textile people are reminded to still keep their eyes open!
Why are the average production and sales of filament yarns stagnant despite the hot sales of fabrics?
Since April this year, weaving manufacturers have been relatively busy with orders, making the overall market start-up at a high level. As of the end of May, the operating rate in Shengze was still around 80%. Compared with the same period last year, the operating rate this year was 7.4% higher.
Looking back at the situation of polyester filament, the main raw material of filament weaving fabrics, which accounts for 80% of the cost, production and sales have fluctuated greatly since this year, especially since mid-May. The market sales are actually not very optimistic. Compared with the same period last year, the production and sales situation , and there was no outstanding performance.
The price of polyester filament fell by as much as a thousand yuan, but the price of fabrics did not fall but rose?
The following is a table of price changes of conventional fabrics in the market. It can be seen from the change table that the prices of conventional fabrics in the market have increased significantly both year-on-year and month-on-month. In the past, it was rare for fabric prices to rise so frequently.
On the other hand, the price of polyester filament, the main raw material for filament weaving fabrics, which accounts for 80% of the cost, has fluctuated greatly since this year. Since the beginning of the year, all varieties of polyester filament have fallen by more than 1,000 yuan.
With fabrics selling so well, why are printing and dyeing factories not optimistic about their business?
Logically speaking, if there is any disturbance in the weaving industry in previous years, the imbalance between supply and demand of printing and dyeing production capacity will inevitably lead to price increases by printing and dyeing companies. However, in today’s hot-selling fabric market, printing and dyeing companies have remained unchanged. The price increase of fabric companies has not caused them to take any action. According to the author’s investigation into some dyeing factories in the Shengze area, the current business performance of the dyeing factories is very average, and the order cycle has not been delayed like during the peak season.
It’s the traditional off-season, can fabrics still sell well? This is a peak weaving season supported by environmental protection
In the eyes of the older generation of textile people, “Gold, Three Silver, Four” are the traditional peak seasons, but times are also changing or mixed with the vision of textile people, and “Gold, Three Silver, Four, Red and Five” have been derived. Although in recent years Everyone says that if the peak season is not busy, the off-season is not slow, but what I want to say is that the off-season will not be late for too long. In previous years, after June, the traditional distinction between busy and slow seasons is actually very obvious. But this year is special. The market shows no sign of slowing down at all. What’s the reason? When the author recently visited the market, industry professionals put forward unique insights. The author has recorded this, but the true situation needs to be verified.
1. The price increase at the end of last year emptied the inventory in the weaving market
Before the G20, the market was under high pressure on environmental protection. Almost all textile companies had limited or stopped production. However, the demand for textiles and clothing existed for a long time. In addition, the peak e-commerce seasons such as Double Eleven and Double Twelve led to the wave in the fabric market in October last year. The market situation has greatly alleviated the previous problem of high inventory in the fabric market. For example, many manufacturers of polyester taffeta and simulated silk have low inventories this year. Some best-selling specifications such as polyester taffeta 210T and 290T, and manufacturers of simulated silk tangle, high twist, and high elastic series products are often over-sold, and downstream customers are queuing up to wait for goods. . It is precisely because of this wave of market conditions that the raw material market sales were overdrawn in advance, and the market collapsed after the year. On the other hand, the high inventory clearance phenomenon caused by environmental protection and high pressure will eventually accumulate again over time. Do you think this is a normal demand phenomenon?
2. The recent elimination of water-jet looms has exacerbated the imbalance between market supply and demand
I heard that in the past two years, a loom could earn 20-30 yuan for producing polyester taffeta, which basically only earned the labor cost. Polyester taffeta machines are very profitable these days. One loom can make hundreds of dollars in profit.For a loom, it would be 10,000 yuan, and the profit would be much better than before. Why? It’s not just a moth caused by environmental protection!
This year’s environmental protection efforts seem to be more fierce than last year. In recent years, Jiangsu and Zhejiang have targeted the water-jet industry, which accounts for more than 70% of the textile market, and a large number of water-jet looms are being shut down. and elimination. Looking at the changes in the downstream clothing market, it can be seen from the foreign trade order data that in fact the order volume of terminal clothing has not changed much. Although the output has decreased, but the demand has always existed, the number of water-jet looms has been reduced by 1/4. The transfer has led to an overflow of market orders, which explains why the production and sales of raw material manufacturers are still difficult to achieve outstanding performance!
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