The point when cloth prices will rise may be after the National Day

More than half of September, the traditional peak season for the textile market in the second half of the year, has passed, but the market’s performance is different from what many textile people expected.

The price of raw materials has increased, but the price of cloth has not; customers have come to inquire, but they have not actually placed an order. What the hell does this happen? Under what circumstances can the price of cloth really rise?

Raw materials are generally rising

Throughout the third quarter, international oil prices continued to rise, driven intentionally by oil-producing countries such as Saudi Arabia and Russia. Crude oil rose nearly 20USD/ in the third quarter. Barrels, 11 London Brent crude oil futures prices rose to Per barrel94.34USD, The cumulative increase exceeded 27% .

The rise in crude oil will lead to a simultaneous rise in downstream chemical products.

PTAPrice7 months to date, from 5660yuan /tons rose to 6330yuan/tons, rose670yuan/ tons, an increase of 11.84%.

Ethylene glycol price7month to date, from3875yuan/ tons rose to 4270yuan/tons, up 395 span>yuan/ tons, an increase of 10.19%. The polyester filament yarn in the third quarter also showed an upward trend. 7To date, polyesterFDY150D rose from 7980yuan/ tons to 8750yuan/ tons, up 770yuan/ tons, an increase of 9.6%.

In general, from the beginning of July to the present, the cost of raw materials for weaving companies has increased by nearly 10%. As for the price of gray cloth, it has basically not changed much. I thought that the market would improve in September, but seeing that other companies were not raising prices, I had no reason to tell customers about the increase.

Mr. Huang, a trader, said: “It’s not easy to find a reliable customer these days. It’s hard to find a reliable customer but you still haven’t maintained it well. With the current market situation, it would be good to have stable orders. If you make less, make less.” Right.”

The main reason for the failure of orders

Of course, the main reason why raw materials cannot increase is that there are not enough orders in the market.

Mr. Li, the person in charge of a textile company that specializes in functional fabrics, said: “In previous years, after entering the 9 month, customers began to place orders one after another, but this year, although old customers are also We have inquired about orders, but many still maintain a wait-and-see attitude. The overall order volume is basically the same as in August. The overall feeling is that the orders are not as large as expected.” span>

Mr. Jin, who produces pongee, said: “The orders from foreign trade customers have not yet come in. Domestic trade is very popular now, but now domestic trade is all about quick reaction, and there are very few orders for large goods like ours. , we can only wait for 10 monthly market trends.”

In addition, July and August have a large amount of conventional gray fabrics flowing into the market. This part of gray fabrics will also be compressed. The living space of textile enterprises. It can only be said that some orders have disappeared due to changes in the market environment; some orders are still there, but customers are still waiting and watching. Under such circumstances, how can cloth prices rise?

When will cloth prices increase?

Nowadays, weaving companies are dreaming that the price of cloth will rise soon. After all, the price of raw materials is rising day by day, but the profits are getting lower day by day. Under what circumstances can the price of cloth rise?

The list is coming

The most fundamental reason why cloth prices are not rising now is insufficient external demand. Many cloth bosses said that the market is not without demand, but this demand needs a certain opportunity to be released, maybe the weather cools down, or maybe it comes at a specific time. At this point, by October 10, some of the wait-and-see orders may be placed.

Costs are rising and everyone can’t afford it

Although raw materials have increased the cost of raw materials for weaving mills by nearly 10% since July, many companies Because we use previously purchased raw materials in stock, the cost can still be controlled. When the raw materials in stock in the factory are exhausted and the price of cloth cannot cover the cost, textile companies will either reduce production or raise prices.

External factors

Another possibility of price increase is that the supply and demand relationship has been affected by certain influences and reversed in the short term. At this stage, polyester production capacity has begun to be overhauled one after another. The market judges that this production reduction may continue for a period of time. A large number of textile people are concerned about this. He also expressed great concern.

Editor’s note: After entering 9 months, market demand has not been fully released, so many textile companies have not felt the obvious peak season as in previous years. This situation Maybe things will change after October 10. The National Day may be the time when cloth prices rise.
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