Remember polyester taffeta? It seems to have been unknown in the market for a long time. It has been silently at the “bottom level” of the fabric market, and is what textile people call “commodity goods” and “rag cloth”!
Sales of polyester taffeta are not what they used to be
Looking back on 2017, polyester taffeta performed “Singing as a Serf” and once became the focus of the entire market. The price also soared, and it was no longer what people call “a popular commodity”. At that time, we were experiencing the pain of rectification of water-jet looms. Many small factories and old machines that produced polyester taffeta and other conventional low-threshold products were being rectified. Coupled with the improvement in demand, this type of gray fabric was not only sold out, but even sold out. There is not enough to sell, it can be said that “a piece of cloth is hard to find”!
“It’s hard to find a piece of fabric” has directly led to a sharp increase in the price of polyester taffeta, which not only increased by 10%! What’s more important is that you have to wait in line for the goods, and you may not be able to get in line! When the price of raw materials is stable, a 10% increase in the price of polyester taffeta means that its net profit increases by 10%. A machine can earn 100 yuan a day, which is a five-fold increase from the same period last year!
Let’s look at today’s polyester taffeta, which has been labeled as “bulk goods” and “rags” again, and the inventory is so large that no one cares about it. Manufacturers sell goods at low prices, and prices fall into the dust.
“Our factory is in Anhui and has nearly 800 looms. It mainly produces polyester taffeta, pongee, Shumei silk and other conventional varieties. This year, due to the epidemic, business is not good. Currently, gray fabrics are piled everywhere in the warehouse in Anhui. The warehouses in Shengze are also full, even in the yard, and there are probably more than 2 million meters of polyester taffeta in stock.” said a person in charge of a textile company.
Machine rate dropped by 20 yuan/day
In 2017, the price of 210T polyester taffeta gray fabric reached 1.8 yuan/meter, which dropped to 1.6 yuan/meter in 2019, and recently it is only 1 yuan/meter! With the stabilization of water-jet looms, the supply of polyester taffeta has also returned to normal. In 2019, the daily gross profit of a polyester taffeta machine was 10-20 yuan, a year-on-year decrease of 80%. But this year, due to the impact of the epidemic and high-temperature holidays, a polyester taffeta machine lost 20 yuan a day!
From a cost point of view, calculated only from the cost of raw materials, the raw material specification used for 210T polyester taffeta is 63D FDY polyester filament. The price of polyester filament of this specification in 2017 was about 10,100 yuan/ton, and the price in 2019 was about 8,600 yuan. Yuan/ton, currently about 8,800 Yuan/ton in 2021. In 2017, polyester filament also rose to a particularly high point due to environmental protection regulations, and the price of gray fabrics was also extremely high, but its profit margins are still considerable. By 2019, with the decline in raw material prices, the price of gray fabrics has naturally dropped a lot. At this time, the machine profit is still 20 yuan/day. But now, the price of raw materials is 200 yuan/ton higher than in 2019, but the price of gray fabric has dropped by 0.6 yuan/meter. What a huge loss!
Throughout the first half of the year, the textile market has been in a situation of lack of market orders. Although there were orders in June, the stamina of this wave of orders was seriously insufficient. The market did not even last until the end of June, and the order volume was not at the same order of magnitude as in previous years. The most conventional fabrics, such as polyester taffeta, are mostly used in market orders and in large quantities. However, this year the market is severely lacking due to the shrinking demand caused by the epidemic, so the sales of polyester taffeta have plummeted. However, selling goods at low prices also has its benefits, that is, downstream traders and customers can get some respite.
Next, the traditional peak season of “Golden Nine and Silver Ten” is coming, and this period will be the most important stage for placing market orders. According to the past, a large amount of conventional gray fabrics will definitely be consumed. This year, under the influence of the epidemic, it is inevitable to discount the number of market orders in the second half of the year, but as the demand for the production of new products in the season still exists, market orders can still reach a peak.
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