In recent days, the price of crude oil has been on a roller coaster, rising and falling sharply. This is mainly due to two things that have affected the crude oil market. One is Saudi Arabia’s statement that it will increase production in 2024, and the other is the impact of the Palestinian-Israeli conflict.
In the face of rising crude oil, how will the textile market react?
Polyester yarn still runs under pressure
In the face of rising crude oil, the polyester market still maintains a stable but weak operation. From the perspective of PTA, the direct cost support brought by PX is insufficient, and the absolute price shows a downward trend.
However, due to the intensive maintenance of PTA equipment this month and the increase in downstream polyester load, PTA processing fees have been restored during the week. However, due to poor expectations of future supply and demand, overall confidence is still poor.
In addition, textile companies have insufficient new orders, market confidence is weak, and the polyester yarn market has also generally shown a downward trend. Many companies said that at present, orders are still mainly for small orders.
However, due to the sharp increase in crude oil, the price of polyester yarn is still expected to rise, but it has not yet been reflected in the market. However, even so, the production and sales of polyester yarn have not increased significantly.
Are textile companies no longer concerned about polyester prices?
In fact, textile companies no longer care much about polyester. After two years of hard work, many textile companies have been oppressed by raw material costs and have found their own way out after profits have been compressed.
Polyester prices fluctuate with it
After the beginning of this year, textile companies can be roughly divided into two types. One is to start on the research and development and custom-woven orders track, and the other is to choose a product and start to make off-the-shelf products.
It can be clearly felt that spot companies have sprung up since the beginning of this year. It is precisely because companies have adapted to the fast pace of the current e-commerce market that spot companies have adapted to the requirements of the times.
On the other hand, the R&D track is also in line with the needs of the times. As low-end production capacity gradually moves outward, the development of mid-to-high-end products has to be launched, and this is also the best way to get rid of low-price involution.
The company has something to say
A person in charge of a weaving company that specializes in yarn-dyed fabrics said: “Our products are relatively niche, so we mainly focus on orders. The prices given to customers are basically fixed and will not be affected by fluctuations in raw materials.”
Another business owner who specializes in spot elastic fabrics also said: “Because we are a company that produces spot goods, the raw materials are relatively single in variety, and we can stock up on large quantities, so the impact on us is not great.”
It can be seen that neither of these two methods has a particularly big impact on polyester price fluctuations for enterprises. So what is the biggest worry for enterprises now?
Decreasing orders and increasing inventory
The biggest trouble for enterprises now is excessive inventory, and the direct reason for the increase in inventory is the decrease in orders. In recent years, due to the reduction of global consumption power, people’s consumption level of clothes has dropped significantly.
Of course, some bosses also joked that the reason why people don’t like to buy clothes may be that the quality of the clothes nowadays is so good that they won’t wear out even if they are worn for several years, so the money will be spent elsewhere.
In order to cope with the problems of reduced orders and increased inventory, companies have embarked on a new path, a model that combines orders and spot goods.
The company has something to say
A company that specializes in Oxford cloth said: “Our biggest pressure now is the reduction of orders, and the inventory is more than 5 million meters, so we now adopt a method of combining orders and spot goods. When there are orders, we will make orders, and when there are no orders, we will make orders.” When the time comes, our machines will make spot goods to control inventory.”
The person in charge of the main light outdoor spot products said: “Our spot companies will definitely face inventory pressure. Our inventory is nearly 8 million meters, so we are also taking some orders now so that the machines can reduce the number of orders. Stock.”
This series of problems arise mainly because the shipment of consumer-end textiles has indeed driven the fabric market to a certain extent, but this part of the demand is only reflected in a small number of products and cannot satisfy most textile companies in the market. “.
�Having said that, there are still relatively eye-catching products on the market recently. The rise of light outdoor has also made some companies make a lot of money. Therefore, the current market is not good, which does not mean that the future will not be good. It is just that this ” “A small number of products” have not yet had their turn. Generally speaking, textile companies still use “cultivating internal strength” as the main response method.
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