The price increase of spandex raw materials has not stopped, with prices rising by 2,000-3,000 yuan/ton every now and then. Some weaving manufacturers have been unable to withstand the cost pressure and have raised the price of gray fabrics. However, there are still manufacturers selling spandex four-way stretch gray fabrics. What is going on!
A weaving company that mainly produces elastic fabrics started promoting four-way stretch gray fabrics a few days ago. The specifications are mainly 100D four-way stretch. Now sold at 2.2 yuan/meter, the original price was 2.25 yuan/meter. Although the promotion intensity is not large, at this juncture when the price of spandex continues to rise, a 5-cent price reduction will also have a great impact on profits. Through detailed discussions with the person in charge of the factory, we learned that the sales of four-sided elastic have recently declined and the factory’s inventory of gray fabrics has increased. In order to reduce the inventory, promotion methods have been adopted. After a few days, the promotion has achieved remarkable results, the inventory has been reduced to a reasonable level, and the discount has been cancelled. Since 2019, the production capacity of the weaving market has been excessive and the inventory of gray fabrics has increased. Promotional sales have become a routine operation for weaving manufacturers to destock, and this phenomenon exists throughout the year. Especially for some unpopular varieties of gray fabrics, there is a large accumulation of inventory, so it is not surprising to see price reductions and promotions. However, it is indeed very rare to still promote products when raw materials are soaring and gray fabrics are selling like hotcakes.
Four-way stretch fabric sales decline
Although the price of spandex raw materials is still rising, four-way stretch fabric is also a hot-selling product this year, but compared with June , sales in July declined significantly. The phenomenon of stockpiling has also decreased, and most of them are mainly for rigid needs. Therefore, the above-mentioned manufacturers have overstocked their inventory and sold out their goods.
01
The person in charge of the above-mentioned manufacturer also revealed: “In June, the weekly sales of four-sided elastic fabrics were basically around 600,000-800,000 meters. In July The maximum we can ship out per week is 200,000 meters, which is too little. Except for cash, the debts owed to goods shipped in June have not been recovered. This year’s payment collection is particularly poor. There is more inventory and capital turnover is more difficult. We can maintain capital and promote sales.”
02
Another four-way stretch weaving company also gave the same feedback: “The demand for four-way stretch is getting less and less in July. There are only some old customers who just need to get the goods, so there are a lot less. Now the price of raw materials is too high, and the storage time of four-sided bombs is short, so we dare not make too much inventory, so we basically only produce when there are orders.”
Flowers are not blooming for a hundred days, and it seems that SiMianBan will also step down from the “altar”. In the early days, the price of spandex increased wildly. In addition to the rising demand for four-way elastic woven fabrics, there was also a greater demand for knitted warp-knitted fabrics, which fueled the price increase of spandex. But now, orders from downstream weaving companies have been decreasing, especially for circular knitting machines, and the operating rate is also slightly low. The downstream circular knitting machine market in Xiaoshao area continues to operate, with an overall load of 50-60%. In the downstream circular knitting machine market in Guangdong, terminal orders are average, and the operating load of enterprises is close to 50%. The circular knitting machine market in Jiangyin, Changshu, Jiangsu is under-operated, with orders from downstream weaving companies being average, and the overall load on the circular knitting machines being 40-50%.
Spandex prices continue to rise , four-way elastic may be replaced
When orders are reduced and inventories are rising, the price of spandex raw materials is still rising without a clue, and downstream companies have begun not to buy it. This year, in addition to four-way stretch, the sales of high-elastic, T400, T800 and other fabrics also performed well. This type of gray fabric that does not use spandex raw materials is becoming more popular at this time. Without the restriction of cost pressure, weaving manufacturers are more willing to produce this type of gray fabric. It is reported that many weaving companies have begun to produce T800 fabrics. Soon, T800 may replace four-way elastic. The price of spandex has reached a very high peak. As the saying goes, if it rises for a long time, it will fall for a long time. This is also a factor that weaving manufacturers are very worried about. If the price of spandex suddenly drops sharply, it will inevitably bring losses to the weaving enterprises. Even if the gray fabric is sold at a loss, the inventory may not be removed, and the possibility of losses is very high. Therefore, many manufacturers that produce four-sided elastic fabrics are now “timid” and do not dare to produce at will.
The spandex supply problem may be alleviated, ending the rise
In the spandex industry, companies continue to start operations, with the overall industry output approaching 90%, and the overall market sentiment is normal. Most of them can reach 90-100%, and the operating capacity is still relatively high. Only a few companies have only 6.50-8.50% due to insufficient operating capacity of part of the production capacity. Spandex manufacturers are operating at a high rate, while downstream demand is weakening, and the subsequent tight supply problem will be alleviated. At the same time, new production capacity has been put into operation. Huahai spandex has recently put into production 10,000 tons, and it is expected that another 10,000 tons will be put into operation in the future. After the supply of spandex is relieved, the price increase may also subside.
Due to the particularity of its short storage time, four-sided bombs still make many cloth The boss is quite worried. Once the inventory rises, a sense of crisis will arise spontaneously. Instead of scrapping it or the raw materials falling in price and the gray fabric depreciating in the long run, it is better to maintain the capital and clear the inventory now. Of course, when the “Golden Nine and Silver Ten” peak season comes, the four-sided bomb may return to the “sacred altar”. After all, it is still the main force in autumn and winter clothing, and no fabric can be completely replaced.��
</p
