Textile raw materials experienced a wave of increases after the Spring Festival. Although there was a sharp correction in prices in mid-March, the current prices still increased significantly compared to the beginning of the year. , among which FDY150D rose by 26.86%, POY150D rose by 25.83%, and DTY150D rose by 14.01%. Compared with half a year ago, all polyester yarn types increased by more than 30%.
On April 12, some polyester factories started price reduction promotions, but then on April 13, many raw material factories raised their prices back up.
The price of polyester yarn from a major major manufacturer in Shengze has increased by 100-200 yuan today
Tongxiang The price of polyester yarn from another major factory increased by 250 yuan
Another POY factory in Xiaoshan raised the price of polyester yarn by 150 yuan today, and the discount was cancelled
The polyester yarn price of a major factory in Xiaoshan increased by 100-150 yuan today
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Under this kind of increase, the profits of all aspects of textile have gradually shifted to the raw materials. Due to the transfer, downstream weaving, printing and dyeing, and trade are all suffering.
“With the price increase of upstream raw materials, the procurement cost and production cost of fabric companies have increased significantly. If the price of raw materials continues to rise, the company will face an unprecedented crisis. It’s a small challenge.” The relevant person in charge of a dyeing and finishing company in Jiangsu said that in order to ensure the interests of customers, the company has not yet raised fabric prices, which will undoubtedly cause the company’s profits to decline and have a certain impact on the company.
Another relevant person in charge of a textile company said frankly that the direct pressure brought by the increase in raw material prices lies in the shrinkage of the company’s own funds. However, because prices are rising day by day, customers are waiting and watching, and the market is unclear, companies do not dare to take risks and sell inventory at high prices. Moreover, many contracts signed before the price increase could not be executed due to the excessive increase in raw material prices. Many contracts need to be renegotiated, and some orders may be cancelled.
On the one hand, you have to suffer from low profits or even losses, and on the other hand, you have to worry about customers not accepting the quotation and canceling the order. Especially as the epidemic in Europe and the United States has repeatedly locked down cities in many countries, market demand has slowly recovered, and at the same time, the Southeast Asian textile industry is competing for domestic and foreign trade orders. The entire textile market did not feel the warmth of “gold, three, silver and four” this spring. The operating rates of weaving, printing and dyeing began to show a rare decline at the beginning of the year, and fabric inventories began to grow slowly. The entire market is struggling to move forward under the shadow of price increases, but some textile companies are very happy to increase the price of raw materials.
Spot merchants have become beneficiaries of the price increase of raw materials
“The increase in raw material prices has an impact on us, but it is a positive impact. Our main business is the fabric supermarket, and most of the products are in stock, so we have sufficient Inventories are in stock, product prices are relatively stable, and sales are growing against the trend.” A spot dealer in Wujiang, Suzhou said that currently, the sales of the company’s products in both domestic and foreign trade markets have increased steadily.
From the introduction of the relevant person in charge of the fabric supermarket, it can be seen that the price increase of raw materials and fabrics has a positive impact on them. This situation occurs mainly because fabric supermarkets have a certain amount of fabrics in stock, and most of this stocking was prepared last year when the prices of raw materials, fabrics, and dyeing fees were low.
The current impact of various cost increases on these fabric supermarkets is mainly from two aspects:
Follow the market and raise prices
Although the stocks of many fabric supermarkets are fabrics produced at low prices last year, the price increase of raw materials this time has also allowed them to raise fabric prices. Price opportunity. At present, the more common spot prices on the market are that these products are mainly white spot products. The overall price increased by 0.1-0.3 yuan/meter compared to the previous year. According to a trader, he bought about 3,000 meters of 100D chiffon in the market at 4.3 yuan/meter in early January this year. At that time, the price was beyond what he could make by himself. But now the price is around 4.5 yuan/meter.
The spot dealer’s inventory of fabrics before use In this case, profits increased significantly. At the same time, with the surge in raw materials after the new year, spot dealers are also the fastest-responsive group in the market. They quickly move to sweep away a large number of low-priced gray fabrics from last year on the market, ensuring their own spot supermarket inventory for a period of time.
Low price, guaranteed sales
Although most of the spot dealers also use raw materials to increase prices They raised their spot prices, but even so, their spot prices were still lower than the market prices. After many rounds of raw material price increases for the more common imitation silk on the market, the current prices of 75D24T chiffon, 50D chiffon, and 75D tangled hemp are 2.4 yuan/meter, 3 yuan/meter, and 4.4 yuan/meter respectively. The prices of finished products are 4.5 yuan/meter, 5.2 yuan/meter, and 5.3 yuan/meter. Normally processed in a dyeing factory, plus the dyeing fee of about 1.7 yuan/meter, plus more than 25%shrinkage rate, the final cost is far higher than the spot price on the market. In other words, making orders by yourself is far less cost-effective and convenient than buying spot goods in the market. In this case, textile traders are naturally willing to buy spot goods directly in the market.
Spot supermarkets need to stock a large amount of goods because of their own characteristics , you can restock when the prices of fabrics and dyeing fees are low, lock in the low price of fabrics, and wait for the price of raw materials to rise sharply, which can not only ensure higher profits, but also have more sales. In addition to polyester factories, spot traders have become the biggest beneficiaries of raw material prices.
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