Recently, there have been reports that spandex will collapse, but it is true that since late August, the trend of spandex has begun to weaken. What impact will the drop in spandex prices have on the gray fabric market? Since March this year, the price of spandex has increased wildly, which has affected the price of downstream four-way stretch gray fabrics. At the same time, it has also driven up the quantity of gray fabrics shipped. At present, the price of spandex has reached a new high in 10 years. However, since late August, the price of spandex has dropped by 1,000 yuan/ton. Although the increase compared to 40,000 yuan/ton is far from enough, it is good news for weaving companies currently in trouble.
As the price of spandex falls, the cost will naturally decrease. Although the price of gray fabric will also fall, the current market has reached the traditional peak season of each year, and the cloth boss is willing to pay the price. The willingness is strong, and the price of four-way elastic fabric has not fallen much. Therefore, from a cost perspective, the profit margin of four-sided bombs has increased slightly.
The person in charge of a weaving company specializing in the production of four-way stretch fabrics told the editor: “Now the price of spandex has dropped, and the price of four-way stretch gray fabric has dropped by 0.02 yuan/meter to 0.05 yuan/meter. On the surface, The profit is a little better, but the shipment volume is not so good. Spandex has already been on a downward trend. Once it collapses, the stock of four-sided elastic in hand will probably suffer losses again. Therefore, the stock will be sold appropriately, but the actual profit has not increased. ”
Although four-way elastic has always been a hot-selling fabric on the market, its sales are actually declining. Especially in September, there are still no signs of improvement. Four-sided elastic plays a very important role in autumn and winter clothing. According to usual practice, it is now the time when four-sided elastic is hot-selling, but now there is no upward trend.
“The weekly sales of four-sided stretch gray fabrics in June were basically around 600,000-800,000 meters, in July 200,000 meters per week, in August it dropped to 150,000 meters per week, and now every week At most 200,000 meters. There is no change, the market is really average.” said a textile boss in Shengze area.
1
Spandex prices fall, four-way stretch sales suffer
Spandex Has the price softened and the popularity of four-sided bullets also cooled down? Of course, the popularity of four-sided elastic this year is naturally due to the excessive rise in spandex and tight supply, which has led to many downstream manufacturers scrambling for goods and production. But now that the price of spandex has been adjusted back, the mentality of manufacturers has also changed. Merchants are mainly following up on purchasing spandex, and their enthusiasm for stocking has also dropped significantly. The panic mentality increases, which may be due to the large amount of four-sided elastic cloth eaten in the early stage of digestion. This leads to poor market liquidity and slow delivery of gray cloth.
2
The market is ahead of schedule or there are signs of overdraft
This year, there has been an abnormal market situation, which is the “off-season but not slow” in June. In June, market confidence improved, and market expectations for the second half of the year were particularly optimistic. Autumn and winter fabrics began to sell well on the market, resulting in better sales in what was supposed to be the off-season. Especially four-way elastic, driven by the rising price of spandex, four-way stretch is particularly popular. This wave of goods shipments includes many traders stocking up orders, which is the so-called advance overdraft. As the overseas epidemic intensified in August, market confidence declined and new orders were limited. This resulted in the inability to digest stocking orders and the decrease in shipments of new gray fabrics. Perhaps, the market for four-sided bombs has really been overdrawn. An old textile master revealed: “I’m afraid it won’t be popular in the second half of the year. Domestic demand is limited, and overseas overdrafts have been completed in advance. If September is good, we will have a normal holiday this year. If September is not good, we will collect payment in advance and have a holiday.” Of course, the textile veteran The Master’s statement is slightly pessimistic, but today’s market does show signs of being overdrawn in advance. After all, four-way elastic is used in a wider range of clothing than other products, so as long as the market improves, the amount of four-way elastic will still improve.
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