The Spring Festival is getting closer and closer. Starting this week, the textile market has officially entered the final stage. Taking Jiangsu and Zhejiang regions as an example, the start-up rate has been reduced to about 60%. Some textile companies have already gone on holiday, and those with orders are still working. Work hard!
How will the market return after the holiday go? This is the topic that textile people are most concerned about at present. Will raw materials rise? Will gray cloth be easy to sell? Will there be queues at dyeing factories…
Will raw materials rise after the Spring Festival?
Affected by geopolitical conflicts recently, crude oil has started to rise Following a wave of price increases, some experts predict that if the conflict continues to escalate, international oil prices will soar to US$80 per barrel! This has a huge impact on the polyester market. At the same time, polyester yarn has also started to rise.
In the past 2019, the price of polyester yarn has been at a low level, and cloth bosses are not very enthusiastic about stocking up on raw materials. Recently, raw materials have begun to rise, and many cloth bosses also said that they are “taking action.” “In 2019 The price of polyester yarn has been falling, so we have adopted a buy-and-use strategy. Now that the raw materials have risen, we are affected by buying up and not buying down. Moreover, according to the practice of previous years, there will be a “good start” phenomenon. Therefore, we I took advantage of the situation and prepared some.” So the question is, will polyester filament prices continue to rise after the Spring Festival?
At present, from a cost perspective, PTA, the raw material for polyester filament, is weakly declining, and ethylene glycol is still at a high level, but the support from the cost side of polyester filament has been significantly weakened. From a profit perspective, the price of polyester filament has been reduced in order to be shipped in the early stage, and the profit margin has shrunk significantly. Some varieties are even on the edge of profit and loss, and there is not much room for price reduction after the holiday. However, the post-holiday increase may be very limited. After all, demand determines everything. Downstream demand will not improve significantly in the short term, so there is insufficient confidence for polyester yarn to rise.
There is still an accumulation of gray fabrics in the printing and dyeing factory, and the market can be expected to start the new year
Most printing and dyeing factories have officially gone on holiday last week, but before the holiday, some dyeing factories still have a lot of unfinished orders and can only wait until after the year.
Traders also revealed that although dyeing factories and weaving factories have been on holiday one after another, foreign buyers are still continuing to place orders. “I placed the final order of 50,000 meters last week, but it will definitely not be completed before the year, so I can only wait until after the year.” In the market, there are still inquiries, samples, and purchases.
During the holidays, printing and dyeing factories will press cards, pile up gray fabrics, and traders still have orders on hand. From this, we can foresee that, Coming back after the holidays may be quite hectic. Coupled with the recent positive news about Sino-US trade, those pending US orders may be successfully issued.
Spring Festival Afterwards, can gray fabrics stop falling and rebound? ?
Raw materials have increased, and downstream fabrics are also starting to move. After all, the previous price was really too low. Many textile companies have already lost money. At present, some weavers have begun to adjust gray fabrics. Therefore, textile companies are more likely to adjust fabric prices after the holiday.
When it comes to price, it is often linked to inventory. The inventory of conventional gray fabrics on the market is still very high, but �It is said that this is a major concern for cloth bosses. In order to smoothly digest the inventory, some cloth bosses said they would not raise prices. “Buyers now have no shortage of supply at all, and fabrics can be purchased at any time. If the price increases, we are afraid that customers will not accept it. It is still important to stabilize old customers.”
In 2019, low-end gray fabrics such as polyester taffeta and pongee In a state of oversupply, many manufacturers have begun to transform and reduce the production of these gray fabrics. However, there is still excess production capacity of this type of gray fabrics in the market, and prices have dropped again and again, leaving manufacturers with no profits at all. Some factories that make high-end gray fabrics are shipping smoothly and their inventories are at low levels. Perhaps in 2020, the prospects for conventional gray fabrics are still not very clear, and it will be very difficult to increase prices!
Textile friends, happiness is the result of hard work. No matter which direction the market will go after the Spring Festival in 2020, it is always right to roll up your sleeves and get started! Here, the editor also wishes the textile people a happy Spring Festival holiday.
