If you ask the textile bosses in April, it is estimated that today’s lowest price may be tomorrow’s highest price. Either no one inquires about the price, or there is no trace of the price after asking. Unless it is urgently needed, otherwise everyone Everyone is watching from the sidelines!
But the market trend has turned recently!
Raw materials have increased three times a week! The illusion of returning to the peak season in a daze
Recently, there have been news of price increases in the raw material market:
The economies of many countries are gradually recovering, and U.S. oil It has risen for five consecutive days, hitting two-month highs for three consecutive days. Brent oil once stood at $36. The bullish forces in the market counterattacked, and crude oil prices rose sharply, which gave a shot in the arm to the raw material market that had been falling. The prices of bulk textile raw materials, including PTA and ethylene glycol, have been rising, and polyester filament manufacturers have also started to rise, ending many days of decline.
(A leading company raised its quotation three times within a week)
According to the monitoring data of China Silk City Network, as of the 21st, the current mainstream quotations for POY 100D/36F are between 5700-5800 yuan/ton, the mainstream quotations for FDY75D/36F are between 6600-6700 yuan/ton, and the mainstream quotations for DTY75D/36F are between 6600-6700 yuan/ton. Between 8400-8600 yuan/ton.
At the end of April, the mainstream quotations for POY100D/36F were between 5300-5400 yuan/ton, the mainstream quotations for FDY75D/36F were between 6000-6100 yuan/ton, and the mainstream quotations for DTY 75D/36F were between 8200-8400 yuan/ton. between tons.
▲Polyester filament price increase and decrease table this week
It can be seen from this The price of polyester filament has increased to varying degrees. For textile companies in the “post-epidemic era”, the continuous rise in raw material prices in the short term is not something to be happy about. Some weaving companies can’t sit still and have issued price increase notices to alleviate the costs caused by rising raw materials. pressure.
▲ It is recommended that all member companies increase the price of gray fabrics by 0.5-1 yuan/meter based on the increase in raw material prices
Since July and August 2 years ago, raw materials have continued to skyrocket, causing weaving companies to suffer in the off-season. The Taihu Lake Shade Cloth and Home Textile Chamber of Commerce has issued three price increase notices in a row, which shows that the chamber of commerce has a deep understanding of the price increase. Raw material prices have always been very sensitive, so can the market price of gray fabrics smoothly follow the rise this time?
▲Faced with the surge in raw materials, the chamber of commerce issued three price increase orders in a row
Price increase: three points are due to speculation, seven points Depends on demand!
For this year’s textile bosses, they have almost forgotten what price increases feel like. A closer look at the price increase notice above can be regarded as the “history of blood and tears” of textile bosses after the epidemic. In the early stage, due to the epidemic, domestic and foreign trade orders were suppressed to varying degrees, and orders from many companies were directly cut off.
The market was once in a panic about orders. From the end of March to April, the price of raw materials plummeted to the bottom, and some specifications even fell below the 5,000 price point. The price of gray fabrics dropped one after another in the context of weak demand. Due to the sell-off, some products with large social stocks even fell to the edge of profit and loss: 75D chiffon fell to 2.20 yuan/meter; 190T polyester taffeta fell to 0.70 yuan/meter…
In late April, as the concept of chemical fiber protective clothing fabrics heated up, large orders emerged in the market, which led to an atmosphere of rising raw material prices. For a time, the price of FDY increased by thousands of yuan. Although polyester The price of husband and pongee also increased to varying degrees, but the increase was far less than the increase in raw materials.
“We recently received a large order of 4 million meters. Going to the factory to get raw materials has already increased, but we have already signed the contract. The original profit was only a few cents. All the seeds were eaten up by the raw materials!” This is the painful memory of a cloth boss during the wave of raw material prices in late April.
History is always surprisingly similar. With the rise in raw materials in May, it is indeed “making things worse” for cloth bosses who originally had low profit margins! Especially for fabrics with heavier weights such as blackout cloth and Oxford cloth, the profit erosion caused by the increase in raw materials will be greater.
“With the recent increase in raw materials, we did not purchase a lot more raw materials. Instead, we changed the machines that originally produced Oxford cloth in the factory to polyester taffeta with a lighter weight to make some Inventory and save some raw materials.” Mr. Shen, a fabric manufacturer specializing in Oxford cloth and polyester taffeta, said.
Affected by the epidemic this year, both regulated companies and small and micro enterprises are under great pressure to survive. Although in May, the country is trying its best to stimulate consumption and promote economic recovery, and many foreign countries have lifted the lockdown and started economic activities, the pace of ordering, both in domestic and foreign trade, is far from enough to consume the current inventory of enterprises. The contradiction between market supply and demand is difficult to subside in the short term.
For polyester manufacturers, the surge in international crude oil has accelerated the rise in spinning prices, and it will be difficult for downstream weaving companies to start operations after May.In the early stage, the demand for polyester increased, which also became the driving force behind the increase in polyester filament. It can be said that this round of price increases is “reasonable”! However, the current general environment has not improved. On the premise that the terminal demand is not yet clear, it is not easy for polyester filament to “come back” for a long time.
For weaving companies, it is still a “buyer’s market” and their bargaining power is weak. On the one hand, rising raw materials have brought cost pressure to them; on the other hand, customers have lowered prices and have no choice but to accept orders in order to survive. No matter which aspect, for weaving bosses, the road to price increase is long!
To paraphrase an old saying: Price increases without demand are just hooliganism! Although the unilateral increase in raw materials has allowed gray fabrics to stop falling, deep changes in the supply and demand pattern are the basis for determining prices. The current vagaries of the global economy have undoubtedly slowed down the pace of demand recovery. In the short term, the entire industry chain will resonate. The consistent rise is yet to gain momentum!
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