We are about to enter the “Golden Nine”, so the current market is at the juncture of the transition between the off-season and the peak season. Whether this baton can be successfully passed on has attracted much attention. A little trend in the market may have an impact on Boss Bu’s order taking. .
Therefore, the editor conducted a market research on the current textile market situation. How is the market situation at this sensitive time point?
Market orders have increased
Although the overall shipment volume in the market is not particularly large at present, it can be seen that some orders have improved. Compared with the previous market orders, there has been an improvement. The current market mainly uses T400, T800, four-sided Elastic, pongee, and nylon are the main fabrics, and these fabrics are obviously the main force in autumn and winter fabrics, and they can also be regarded as a signal flare in the peak season of the market.
Mr. Lin, who specializes in nylon products, said: “The current order situation is not bad. It has increased compared with early August, and many are still being sampled.”
Mr. Feng from the weaving factory said: “The current order situation has increased slightly compared with the beginning of August. They are all regular products. Autumn and winter fabrics have improved slightly.”
Manager Xu of the trading company also said: “The current order situation has increased slightly compared with the beginning of August. Nylon fine-denier products are relatively easy to sell, and autumn and winter fabrics have improved slightly.”
Mr. Cheng, who mainly sells Pingtao, said: “Currently, orders are completed every day and sold out every day.”
Although there is a lack of hot-selling products, it can be said that a hundred flowers are in full bloom, and various types of fabrics have been sold. The placement of orders has given a boost to the textile market.
Fabric prices drop
However, behind the order placement, due to the tepid market conditions in the first half of this year, the orders received by weaving and trading companies were average, and the placement of new orders was weak, resulting in high inventory of gray fabrics on the market. According to data from Silkdu.com, the current weaving gray fabrics in Jiangsu and Zhejiang regions The inventory reached 36.7 days, which is much higher than the normal level of the previous two years. From the chart, we can see that the inventory of gray cloth has not reached a bottom since this year, which means that the market has been unable to move goods.
Affected by this, textile companies had to start a price war, forming a vicious cycle of buying from the one with the lowest price. During the company visit, we also learned that although the peak season is approaching, prices have still dropped compared with previous years. And along with the price drop, the company’s profits are also falling. After all, upstream raw materials are rising along with the cost side. Even if they fall, they are still at a high level. When fabric prices fall, profits are bound to fall.
Mr. Lin said: “The price of fabrics has dropped by about 0.3-0.4 yuan.”
Manager Xu said: “The price of fabrics has dropped by about 0.2-0.3 yuan; corporate profits have declined, with profits falling by more than half.”
Mr. Feng also revealed: “The price of fabrics dropped by about 0.3-0.5 yuan; profits were basically guaranteed, and even some losses were incurred.”
Mr. Cheng also said: “The price has risen or fallen by about five cents to ten cents.”
Textile people hold a wait-and-see attitude
Many textile people are not optimistic about the market outlook in September. At this time in previous years, the market has clearly shown signs of entering the peak season, but this year it remains calm. The recovery of demand cannot be completed in a moment, and the increase in orders also requires a process, so September may still be a buffer period like last year.
Mr. Lin judged: “The main reason to maintain a wait-and-see attitude for gold, nine and silver ten is to look at the weather in winter. If the weather is cold, the market will be better.”
Although textile people maintain a wait-and-see mentality, it is undeniable that orders have begun to increase. Even if September does not meet the peak season standards, there is still a great opportunity in October. As Mr. Feng said: “In the second half of the year It will be better, but it won’t be particularly good, but it won’t be worse than it is now.”
Therefore, what the current market lacks most is confidence. When confidence is restored, market vitality will come, which can catalyze the arrival of the peak season.
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