A few days ago, most raw material factories carried out promotional activities,
“Tongxiang One A large factory has a discount on polyester yarn today, and the price is reduced by 300 yuan”;
“Another large factory in Tongxiang has a one-day sale on polyester yarn today, with a discount of 200-400 yuan. “;
“Jiangyin Factory No. 1 polyester price reduction”
….. .
Surge in crude oil and promotion of raw materials drive production and sales?
A number of raw material manufacturers invariably carried out promotions when crude oil rose sharply in the past few days, but the results went in two different directions. It is understood that one The production and sales of a large factory reached 300% today, while the production and sales of another large factory were only 0%.
Is it because the magic weapon of “promotion” has been lost? My own halo? Looking back, I am afraid that the frequent promotions of raw material manufacturers have led to this situation. Multiple promotions in a short period of time have caused the downstream textile industry to form a wait-and-see attitude. Textile bosses are afraid that prices will continue to fall during raw material promotions, and feel that the future is still bright. There is room for decline, and the current order quantity is not satisfactory. If you stock up on too much goods, you will have to swallow the loss yourself.
“The current raw material prices are like a roller coaster, and my heart can’t stand it. I don’t dare to buy when it goes up, and I don’t dare to buy when it goes down.” A weaving factory purchases raw materials the person in charge said.
The market is still sluggish
As we all know, the rise in chemical fiber raw materials is determined by production costs (including crude oil prices) and market supply and demand, and you can see from the figure below The trend of crude oil and the price of raw materials are basically the same, so the rise in crude oil is bound to drive up the price of raw materials in the long-term trend. However, the current surge in crude oil prices does not allow us to see the price of raw materials follow suit. On the contrary, the major Manufacturers are still conducting promotions, which also proves that the current textile market is poor.
As the downstream textile market improves, the downstream acceptance of price increases It is definitely high, but if there is still a lack of orders when the peak season comes, downstream acceptance may not be so high.
More inventory, less orders, even at low prices
Excessive inventory makes the weaving boss a The first two are big. When the market is down, there are no large orders. There are orders and small batch orders are not enough to sell off the excess inventory. When the market is good, inventory is money, but now the price of raw materials is skyrocketing, and downstream fabrics are The cold market situation has caused the weaving boss’s inventory to pile up higher and higher.
The expected “Golden Nine and Silver Ten” has not yet arrived, and the number of orders has not increased. Except for a few weaving bosses who have fixed orders, other manufacturing companies have reduced their inventory in order to reduce inventory. Turn-on rate.
“The current operating rate in our factory is only 60%-70%, which is pretty good. Some factories have already gone on holiday because they don’t have any orders. “said the owner of a weaving factory.
The most important thing for weaving bosses now is undoubtedly to get rid of excess inventory Although they were reluctant to give up, the textile bosses still sold their inventory at low prices to enrich themselves with cash and prepare for future raw material stocking.
The person in charge of a weaving factory that specializes in home textile fabrics said: “Due to the impact of the epidemic, , foreign trade orders for home textiles have dropped sharply, and factory operating rates have been below 60% for more than ten months. Under pressure, factories have transformed into the production of clothing fabrics. However, due to different equipment requirements for home textile fabrics and clothing fabrics, companies can only dispose of inventory at low prices in order to withdraw funds. Fabrics.”
Currently, the biggest impact on the market is the foreign epidemic. Raging, although crude oil is temporarily strong and volatile, the upper space is limited. After all, the recent rebound is the market’s early pessimistic revision of economic expectations, which is unlikely to trigger a trend market. Crude oil is expected to have a weak trend in the market outlook. .
<br
