After mid-September, raw material prices that had been rising suddenly began to plummet, catching many textile companies off guard. Even a short-term rebound in crude oil prices due to the Palestinian-Israeli conflict has not curbed the decline in raw materials.
When crude oil also began to fall, the price of polyester yarn couldn’t stop falling. In one and a half months, some specifications of polyester yarn dropped by nearly 1,000 yuan//ton.
dismal market
Behind the sharp price reduction of raw materials is the sluggish business of weaving enterprises.
During the peak season of September and October, business was not as expected. After October passed, orders were even worse.
According to data monitoring from China Silk City Network, the overall market situation is currently sluggish, factory inventories have begun to rebound, production enthusiasm has declined, and the load of weaving factories has dropped to 73%. In terms of gray cloth inventory, there are many sales of goods at reduced prices in the market, and traders have slightly stocked up. However, the inventory of gray cloth has still slightly increased to 35.4 days.
Trader Mr. Zhang said: “Starting from the second half of this year, the market has been good for two weeks in October. Now it is no longer good. I only have a few small orders in hand.” span>
At the same time, due to excessive fluctuations in raw materials, the purchase cycle of raw materials for some weaving companies has changed from one month to one week now. Mr. Zhou, the person in charge of a weaving company, said: “Raw materials fluctuate too much now. If we continue to purchase polyester yarn on a monthly basis as before, profits may be further compressed.”
However, at this stage, the price of raw materials has not greatly affected the price of gray cloth and fabrics. However, this is not because customers do not want to lower prices.
On the one hand, the current price has been suppressed for many rounds. Mr. Li, an outdoor fabric manufacturer, said: “The price we get from the gray fabric factory now is no different from the previous period, but compared with last year, it is already much cheaper. I also know that their profits are already very low. , but who isn’t now?”
On the other hand, there are no orders, so there is no point in lowering the price.
A functional fabric supplier said: “We haven’t received much fabric from gray fabric manufacturers during this period, but if the order comes, based on the price of raw materials, the gray fabric factory will definitely make the quotation cheaper, because our customers will also There’s nothing you can do about lowering the price for us.”
Even though prices are already low now, unfortunately, there may be room for further declines.
Expectations of a “warm winter”
When the house leaks, it rains all night. As an industry that “depends on the weather”, the textile industry is greatly affected by temperature. Whenever the weather cools down, it will drive the sales of autumn and winter clothing to a certain extent, but this year’s weather is not what textile people want.
On November January 1 , the highest temperature in Jiangsu exceeded 31℃! In the past few days, most areas of our country have experienced rare warm temperatures for the same period of the year. It’s so hot, many netizens lamented “I never expected that11 would still be wearing short sleeves and turning on the air conditioner ”!
In the November month of previous years, clothing stores have already launched all kinds of new down jackets and cotton jackets, but the cold air came very late this year. Many people were wearing short-sleeves not long ago. Who would Have a desire to buy winter clothing? A trader who specializes in down jacket fabrics said: “In November November, orders have stagnated and there is no available material on hand. The order has been executed. The weather is so hot. How can there be sales of clothing?”
More importantly, many textile people now have the judgment that this winter will be a warm winter. A warm winter will affect the sales of winter clothing. Therefore, brand owners and traders are more cautious in stocking, which further affects the market sales.
The trouble with taking orders
Some textile companies are unable to receive orders, and there are still many textile companies in the market who are unwilling to accept some orders even if they can.
Mr. Zhou, the person in charge of a certain weaving company, said: “Nowadays, most of the customers are in debt. Old customers have been cooperating for a long time and know each other well. Even if they owe money, we feel more at ease because we have a mutual relationship with them.” It’s easier to talk to them, but for new customers, we really don’t dare to pay them what they owe.”
In addition, the lengthening of the payment cycle is also a problem. This year, because everyone is short of money, customers’ payment time tends to be 1-2 months longer than in previous years. It is already11 It’s already been 11 months. If I receive an order now, it will be veryIt is possible that the arrears cannot be collected before the Chinese New Year. This year’s cash flow is already relatively tight. A large amount of cash is needed to pay for goods, workers’ wages, etc. before the New Year. This has also led to the closer to the Chinese New Year, some textile companies are less likely to accept orders. The lower the willingness.
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