The time has quickly come to the end of September, and the “Golden Nine” peak season that we have been looking forward to seems to be getting weaker and weaker! In September of previous years, gray fabrics were busy with goods, the printing and dyeing factories had piles of white fabrics at the door, and the prices of polyester and gray fabrics had risen many times… But none of these scenes happened this year! As the end of the month approaches, all we are waiting for is price reductions on polyester filaments and discounts on gray fabrics!
Polyester promotion, but production and sales are not as expected
Last week, New York oil prices fell by 7.48%, Brent oil prices fell by 5.69%, and New York crude oil futures prices fell below US$80. Driven by crude oil, futures such as PTA, ethylene glycol, and polyester staple fiber all plummeted. Subsequently, polyester factories also promoted profits, and polyester filament fell by 300 yuan/ton!
The polyester filament market in September can be said to be very stable. Many textile people originally predicted that polyester filament might rise during the peak season, but in the end it fell sharply. The end-of-month profit promotion for polyester yarn is a good time for downstream weaving companies to replenish their stocks, and production and sales are usually very explosive. Surprisingly, the production and sales on that day were only 116%, and did not reach the expected production and sales of over 200.
This shows that weaving companies have become more cautious in purchasing raw materials. Since mid-to-late September, the market inquiry atmosphere has dropped significantly, and the market atmosphere for gray fabric sales is not good. The shutdown of the peak season has reduced the enthusiasm of weaving enterprises for production, and the purchase of raw materials is naturally based on rigid needs. In addition, although polyester factories have stated that they will cancel promotional offers in October, the continuous decline of international crude oil has made companies think that the current price is not low, and there is no need to buy more, as long as normal production is needed.
The gray cloth rising plan was shattered and continued to fall
For gray fabrics, the drop in raw materials is a bolt from the blue. With the support of the peak season, the downstream weaving company Tinga had a strong desire to fine-tune the price of gray fabrics. However, before it was actually implemented, the raw materials suddenly dropped by 300 yuan/ton, and the desire to increase prices was completely shattered!
A weaving boss said helplessly: “The overall sales of gray fabrics in September were not bad. We planned to start increasing the price by 1-2 cents in the next two days, but before the adjustment, the raw materials fell. In fact, the gray fabrics have been at a loss.” On the margin, even if the raw materials have fallen, our profits have not improved much. What’s more, the raw materials are the previous raw material costs, which have little impact on the price of gray fabrics. But customers only see that the raw materials have fallen now, and the gray fabrics should not increase. Therefore, it is really difficult to increase prices, and we can only maintain capital this year.”
Although it is the traditional peak season, the sales situation of gray fabrics has indeed improved compared with last month, but it has not met expectations. There are even signs of slackening at the end of the month. At this time, Boss Bu had already developed a sense of crisis. In order to prevent inventory accumulation, he could only reduce the price and sell goods! In the peak season, the price of gray fabrics is still falling. It is understood that the current price of gray fabrics on the market is still being promoted at various prices, with the range of decline ranging from 0.01 to 0.5 yuan/meter, and there are even larger drops.
According to the above expressions of the textile boss, it can be seen that the order situation in September, which is the peak season, is average. This seems to be unexpected but also reasonable for the textile boss. In the absence of a recovery in the economic environment and a turbulent global situation, the demand for clothing will not improve significantly. Even in the peak season, large-volume orders cannot be received, and small orders are still the main ones.
Postscript
The recent fluctuations in crude oil and PTA have been more frequent, which has also affected the terminal’s determination to place orders to a certain extent. At present, factory orders are clearly divided, but most cloth owners believe that based on the current market situation, the market improvement in the future will be extremely limited. At the same time, the National Day holiday is approaching, and the factory also has plans to suspend production during the holiday.
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