Textile raw materials are “rising” and weaving companies are suffering

Recently, the commodity market has been turbulent, and the upstream raw materials of fabrics are not willing to be left alone, and they have adjusted their prices one after another. It has disturbed the entire industrial chain and deeply tested the industry’s ability to respond. The prices of raw materials such as cotton, polyester staple fiber, and viscose staple fiber have all increased to varying degrees. At the same time, imported yarn is also eyeing the market. The domestic market is constantly being compressed, causing downstream fabric companies to complain and suffer.

According to statistics, China’s cotton prices rose by 247 yuan/ton last week, an increase of 1.61%, polyester prices increased by 310 yuan/ton, an increase of 4.4%, and viscose prices dropped by 350 yuan/ton. tons, with a decrease of 2.25%. Among these three major fabric raw materials, except for viscose, which has a certain degree of narrow decline, the other two are showing a trend of “heading forward”.

Compared with the rising market prices of raw materials, downstream yarn mills and weaving mills seem to be a little “powerless” to increase prices, but they have to do their best! Last week, the Qianqing market in Zhejiang, China was pure The prices of cotton yarn and polyester-cotton yarn have been increased by about 100 yuan/ton. Since October 18, the Taihu Lake Cover Cloth Enterprise Group Association has once again increased the price of natural cotton cloth by 0.3 yuan to 0.5 yuan. Since the Wenzhou Leather and Fabric Chamber of Commerce increased the price of fabrics on August 22, it has once again increased by 1,000 yuan/ton.

On the other hand, the substantial increase in imported yarn is also the reason for the rise in domestic cotton prices. Qianzhan Industry Research Institute learned that,

Since early November, the number of cotton yarns and polyester cotton yarns from India, Pakistan, Vietnam, Uzbekistan and other origins that have arrived in Hong Kong and entered the bonded warehouse has gradually increased. The main varieties are C20-32S, Pakistan Sai Roofing C10-16S. The shipment and delivery volume of OE yarns have declined. Pre-sales of C21S and C32S jet and rapier yarns in India have been active. Some traders have signed contracts and sold out domestically as soon as they got on board.

Especially on November 10-11, the Zheng Cotton CF1701 contract successively exceeded 16,000 yuan/ton and 17,000 yuan/ton, causing cotton companies and traders to have a huge appetite for spot prices. The quotations of “Double 29, Double 30” machine-picked cotton and “Double 28, Double 29” hand-picked cotton in the supervision warehouse are all above 15,800 yuan/ton (gross weight). Due to cost pressure and market trends, yarn mills have raised their prices. Cotton yarn is quoted at 200-300 yuan/ton, and the price difference between internal and external yarns is widening.

As the price difference between internal and external yarns widens, the market will naturally lead to more influx into the cheaper side. In this regard, the yarn mill also expressed its helplessness. Although it is its own home field, it can only watch helplessly as these orders are taken away by foreign yarns. Because the cost of raw materials is there, it cannot “lose money to grab orders”. As of now, the inventory of imported yarn has increased to 85,000 tons, an increase of 10,000 tons from early October.

In the eyes of economists, high costs are a sign that industrialization is maturing. The more developed countries and regions, the sooner they will face this problem. However, maintaining market stability is a necessary condition for the healthy development of any country and any industry. Although raw materials are booming, overcapacity and sluggish consumption have forced end consumer goods manufacturers to face the choice of price reductions. The brutal price increase of raw materials will only reduce the enthusiasm of downstream production. In the long run, it will have a negative impact on the later market. It is definitely not a long-term solution that can achieve lasting progress!

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