This year’s market situation is a bit strange. In the traditional peak season of “Gold, Three, Silver and Four”, the prices of gray fabrics and fabrics have fallen instead of rising. The price of SPH80D has dropped from the highest point of 3.5 yuan/meter to nearly 3 yuan/meter now. The price of some specifications of the previously popular four-sided elastic has also dropped by nearly 0.5 yuan/meter.
What is the reason for the price reduction during the “peak season”?
Raw material prices fall
Since early March, the price of polyester filament, the main raw material for weaving, has slowed down from the continuous rise since the beginning of the year. Slowly separated, and began to slowly reduce prices. The prices of other polyester raw materials such as nylon and spandex also fell to varying degrees. Raw materials account for most of the cost of gray cloth, which will naturally directly affect the price of gray cloth.
The order situation is not good
However, compared to the price of raw materials, what has a greater impact on the price of gray fabrics is the poor situation of weaving companies receiving orders. The textile industry is subject to strong seasonal influences. To put it simply, it depends on the weather.
A common pattern among weaving companies in previous years is to accumulate inventory during the off-season, and then sell it intensively during the peak season. There is a big gap in the number of orders in the off-peak and peak seasons. But this year’s situation is that the orders received by weaving companies since March do not seem to have increased significantly.
Where have all the orders gone?
European and American epidemics
With the spread of mutated viruses, the third wave of epidemics in Europe is approaching fiercely , many countries have restarted blockade measures. The German Health Minister said on the 27th that he was considering implementing a new round of “city blockade”; in France, the latest data on the 27th showed that the number of newly confirmed cases in a single day has exceeded 40,000 for three consecutive days.
The epidemic prevention situation in the United States is also very serious. According to data collected by Johns Hopkins University, there are currently an average of 63,239 new cases in the United States every day, an increase of 16% from a week ago. . In 30 states and the District of Columbia, daily increases are at least 5%.
Under such circumstances, the expected demand for future clothing in European and American countries will naturally decrease, and the number of domestic orders will naturally decrease.
Preliminary overdraft
Due to the increase in raw material prices at the beginning of the year, the price of gray fabrics began to increase, and many weaving companies shipped large quantities of goods. , these goods are “stagnant” in the industrial chain. When the order comes, this batch of goods is digested first, which means that the weaving companies have advanced the peak season market in March this year to February, and the current orders are naturally not as good as in previous years. This time there is more.
Will the price reduction of gray fabrics last for a long time?
The editor is opposed to this, and the reason is also analyzed from two aspects: cost and demand.
The decline in raw materials seems to be on hold
After the “roller coaster” of crude oil prices last week, the negative impact caused by the epidemic in Europe and the United States It’s basically exhausted. After crude oil dropped from US$70 to around US$60, there is not much room for decline.
For polyester yarn, the price itself is relatively strong in the environment where several giants have the right to speak in the industry. In the past two weeks, the bubbles of PTA and ethylene glycol at the beginning of the year were also suppressed. A lot has been squeezed out, and there will be very little room for polyester prices to fall in the future.
The business of the dyeing factory is booming
Compared with the tepid weaving market, the recent business of the dyeing factory has been extremely booming, and the dyeing costs The business has also increased. Some popular dyeing factories even charge for “bucket trucks”, and the delivery time has reached about two weeks.
The good business of dyeing factories means that there is no shortage of orders in the market, and it also means that the portion of gray fabrics stocked by traders at the beginning of the year is being consumed rapidly.
I believe that after April, the “peak season” will finally show its original appearance. </p
