The textile peak season in the first half of the year has officially ended. Obviously, the textile market in March and April this year is not worthy of the title of “Gold, Three, Silver and Four”. The market only performed well in the second half of the year, and the hot-selling situation looked like a peak season. However, after entering mid-to-late March, the growth in the operating rates of weaving and printing and dyeing began to slow down significantly. Entering April, the operating rate of weaving has dropped for three consecutive weeks, and the operating rate of printing and dyeing is also fluctuating.
However, the epidemic in India has worsened in recent times, and there are constant news in the market about the return of orders from India. So has the market improved due to these possible orders?
The recent market conditions are average and there are no return orders
“There are not many orders at present, and the market is average, so stretch fabrics are better.”
“The sales situation is average, and they are all sold in stock. The best-selling ones are some elastic products.”
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The recent market situation is generally the feeling of the vast majority of textile people, and most textile people Enterprises say that current orders for elastic fabrics are relatively good. However, the number of textile companies that produce and process elastic fabrics or have elastic fabric customers on the market is limited after all. In the absence of hot-selling varieties, most textile companies are unable to feel the peak season. In addition, the recent epidemic in India has not significantly brought about a return of orders.
“I have not felt the impact of the epidemic in India , we currently do more foreign trade orders from Europe and the United States. This year, these European and American orders have decreased by 30% year-on-year, so no one of us has felt any signs of a return of orders.”
“No impact, no feeling” is the market’s most intuitive feeling about the Indian epidemic. Counting on the return of overseas orders is obviously impossible to resolve the “peak season” dilemma. Even if there is a return of orders, they will be lost again after the epidemic improves. Of course, not all textile people are immersed in the fantasy of returning orders from India. Some companies are still rationally adjusting their strategies based on the current market conditions.
Raw material promotions have become the norm, and weavers are unwilling to buy them
Last week, April 29 The Japanese polyester factory has once again launched a major polyester filament promotion. This month, the polyester factory has launched three polyester filament promotions. The previous two were on April 12 and April 22 respectively. The main reason for such frequent price reduction promotions by polyester raw material factories is that overall production and sales are not prosperous. Throughout April, except for the previous two promotions, the average production and sales exceeded 100% only on April 7, reaching about 110%. During the rest of the period, production and sales basically remained at a low level of 40-60%. On April 29, driven by promotions, the average production and sales of polyester factories were between 400% and 600%, and some factories reached 800%.
The production and sales data are very gratifying, but there are also Many weaving companies are unwilling to buy into the lackluster price cuts and promotions offered by raw material factories.
“There have been several price reductions for raw materials, but we have never stocked them. The main reason is that there are no orders, so we don’t need to prepare too many raw materials, and the current inventory is too big. , I feel that the price of raw materials will definitely fall next time.”
“The factory did not stock up on the sales, and I didn’t want to break the rhythm of stocking up on raw materials. I only bought them when they were almost used up. I guess the prices of raw materials will remain stable in the future.”
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The small number of orders in hand and the lack of optimism about the market outlook for raw materials have made many weaving companies not “cold” to price reduction promotions. In other words, it is difficult for the production and sales of raw materials to improve before the market improves. Sluggish production and sales leave raw material factories with no motivation to increase prices. So how will the textile market perform in May?
There are fewer samples and inquiries, and the market may be sluggish in May
Observe the future How the textile market is going can be known through the preliminary sampling and price inquiries. After all, the very beginning of all textile orders begins with proofing and inquiry. Customers placing more orders for proofing and inquiry at a certain time period also mean that there will be more corresponding orders at a certain time in the future. In other words, the market situation in May can be simply judged based on the proofing situation in April.
“Recent proofing and other things are average, and the market is expected to cool down after May Day.”
“There hasn’t been an increase in proofing recently, and I feel that orders will decrease after May Day.”
It’s not just that the number of customer proofings of various textile companies is small. , the flow of people in the textile market is generally average. These signs also seem to indicate that the market conditions on May Day may be difficult to change. After all, the “gold, three, silver, and four” markets all performed mediocrely. How can we expect the market to perform well in May, which is gradually heading towards the off-season.
May has arrived, and there is a high probability that polyester raw materials will have their fourth and fifth price reduction promotions, but textile companies are so confident about the market outlook. If the production and sales of raw materials are insufficient, it is unknown whether the production and sales of raw materials can reach new highs.
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