Before we knew it, it had been more than half a month since we resumed work and production.
“The maximum increase is 1,500 yuan/ton, and many companies have joined forces to raise dyeing fees!”
“Dyeing fees have gone up again! Printing and dyeing factories are starting to run out of stock, and delivery is delayed!”
In the blink of an eye, news such as “Dyeing Factory Liquidation” and “Dyeing Fee Increase” have spread throughout the circle of friends. How will the textile market recover after the holiday? Let’s take a look at what companies say.
There are increases and decreases, and there are differences in order-taking performance.
First, let’s take stock of the company’s current order maintenance situation.
“Currently, orders can be maintained until the end of March, which is an improvement compared with the previous year. We mainly focus on domestic trade, and the order volume has increased by 30% compared with the same period last year. The operating rate is currently 90%, and we will strive to reach 100% in the future.” Main business Mr. Li from Stretch Fabrics said.
“Our company’s domestic trade accounts for 85%. Since the start of construction, the order reception has been good, with an increase of about 15% over the same period last year. The current orders can be maintained for more than 2 months, and the operating rate has rebounded to 100%.” Mr. Gu, who specializes in luggage fabrics said.
“Our company mainly focuses on foreign trade. Although the order situation will continue to improve after the year, it has declined year-on-year.” Ms. Wu, who specializes in functional fabrics, said with emotion.
Through research, it was found that the orders received by the above-mentioned enterprises have become obviously polarized. The foreign trade orders that originally had high hopes performed unsatisfactory, while the domestic trade orders that mainly focused on rigid needs performed well. In general, since the resumption of work, the order receiving situation of the surveyed companies has improved significantly. This conclusion can also be verified from the boot data.
According to monitoring data from Silkdu.com, during the resumption of work and production stage, affected by the acceptance of orders and the arrival of employees, the operating rate of looms in Jiangsu and Zhejiang has shown a slow recovery trend. By mid-February, as market demand gradually released and new orders arrived one after another, the operating rate of weaving companies in the sample rose steadily to 63.5%, which is almost the same as the same period last year (64%).
Fabric prices are fine-tuned, and there are price cuts
Secondly, let’s review the recent situation in the fabric market.
“At this stage, nylon products are relatively hot-selling, and the price of fabrics has been slightly adjusted by 3%-5% compared with the beginning of the year. There are price reductions, and they basically appear in foreign trade orders.” Mr. Gu, who specializes in luggage fabrics, reported back.
“Since February, the sales of four-sided elastic have been good, and the overall price has remained stable. Price reductions have always existed, especially for large customers, and the price reductions have been even more severe.” Ms. Wu, who specializes in functional fabrics, revealed.
“After the resumption of work and production, the best-selling fabrics include elastic eight-piece satin, CEY, etc. During price negotiations, old customers rarely lowered prices, and the overall price increased slightly.” said Mr. Li, who specializes in elastic fabrics.
It can be seen from the hot-selling fabrics that, boosted by the hot sales of downstream clothing, “small batch, multi-batch” fabric replenishment orders are coming one after another, and the sales of spring and summer related fabrics such as imitation silk have begun to rise. However, due to the strong wait-and-see atmosphere in the early stage of the market and the lack of willingness of enterprises to stock up, some fabrics began to be in short supply, and fabric prices naturally rose in response.
According to monitoring data from Silkdu.com, after the resumption of work and production, the inventory of gray fabrics in Jiangsu and Zhejiang regions has become loose, and a downward trend has initially emerged. As the trading atmosphere for spring and summer fabrics has improved, transactions have gradually increased. Entering this week, the decline in gray fabric inventory has significantly expanded (down by 0.8 days).
However, whether it is a foreign trade order or a domestic trade order, the phenomenon of customers lowering prices more or less appeared during the negotiation period. Enterprises generally believe that price-lowering competition is a manifestation of the involution of the industrial chain. Currently, the fabric market supply far exceeds demand, causing pricing power to gradually tilt toward buyers.
Dyeing costs are generally stable, but delivery times have been extended.
Finally, it is the situation in dyeing factories that attracts the most attention at the moment.
“We have not received any news of an increase in dyeing fees for the time being, but the dyeing delivery time has indeed been extended.” Ms. Wu, who specializes in functional fabrics, said.
“I haven’t heard of price increases for the time being, and dyeing fees remain stable, but order delivery is delayed.” said Mr. Gu, who specializes in luggage fabrics.
It can be seen from the feedback from enterprises that there is currently no large-scale “price increase” in local dyeing factories. The overall dyeing fee remains stable, and delays in dyeing delivery are real. Since the dyeing factory is still in its infancy, the orders it accepts include not only unfinished orders before the holiday, but also new orders that are coming into the warehouse one after another. The combination of the two has caused a “traffic jam” in the dyeing factory. Under this circumstance, the dyeing fees for some in-demand varieties have also increased.
For example, Mr. Pu, who specializes in outdoor fabrics, lamented, “Dyeing fees have increased by about 10%, mainly due to the increase in fabric prices in spring.”
As can be seen from the chart above, after entering February, the operating rate of printing and dyeing companies in the sample has rebounded significantly, and dyeing plants are operating at full capacity.Work hard to catch up on production. As of this week, the printing and dyeing operation rate has increased to 69.8%. In terms of delivery time, the dyeing delivery time is generally more than 7 days, and some busy manufacturers require more than 10 days.
Regarding the traditional peak seasons of “gold, three, silver and four”, research companies generally believe that the performance of foreign trade will be weaker than the performance of domestic trade, and generally adopt a cautious wait-and-see attitude. At present, some companies are worried about the promotion and publicity of their products; others feel that inventory backlog and extended payment cycle are the biggest obstacles to maintaining production operations; still others believe that ensuring the continuity of orders is the top priority . On the whole, since the start of construction, the company has performed relatively well in all aspects, and the degree of recovery on the demand side will directly determine the subsequent market trend.
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