The Lunar New Year is coming soon, and the Year of the Rat has finally come to an end. In the past year, the textile market has experienced ups and downs due to the epidemic.
Textile people can’t help but feel the importance of the market. In the upcoming Year of the Ox, it is particularly important to grasp the market in time and predict hot spots in advance.
The new year is coming soon. What are the hot spots that textile people should pay attention to?
The epidemic has recovered and demand has increased
Currently, The COVID-19 epidemic is still raging in many parts of the world. Many countries have started vaccination programs. Chinese vaccines are also constantly going overseas, making a huge contribution to mankind’s war against COVID-19.
As more and more people are vaccinated, people’s hope of finally defeating the new crown virus is just around the corner, and the demand for textile and apparel markets may also visibly pick up.
In fact, textile market orders have rebounded significantly since the second half of 2020. After the news of vaccination at the end of the year, the trend of traders stocking up has accelerated.
It is foreseeable that the market conditions after the beginning of the new year will inevitably recover further than in 2020.
Giants “enter” and competition intensifies
In 2020, although the price of raw materials fell, the performance of polyester companies performed well as crude oil prices hit bottom in the first half of the year. In particular, some polyester leaders above a certain scale have continued to expand their channels throughout the industry chain, and their revenue performance has been even better.
As the end of the polyester industry chain, the gray cloth and fabric industries have also entered the vision of “big guys”. Leading enterprises in the polyester industry such as Hengli, Tongkun, and Xinfengming have successively The pace of building a textile industrial park has been taken. It can be seen that the textile industrial park is the next path that leading companies will focus on after the previous refining and chemical integration project. It is not ruled out that more companies will join this ranks in the new year.
Compared with traditional weaving and fabric companies, the production of polyester faucets has more cluster advantages and can effectively reduce costs. Therefore, traditional textile companies must pay more attention to product differentiation when competing with them in the future.
The prices of raw materials, dyeing fees and fabrics have increased
Since November 2020, with the good news about the new crown vaccine, international oil prices have continued to rebound, and the price of polyester filament has also continued to rise. After entering late January, weaving companies began to take holidays one after another. At first, everyone thought that since they were all on holiday, the market should just pass like this. Unexpectedly, it didn’t take long for polyester filament to stabilize. By the end of January, international oil prices The price of polyester filament has started to rise again. Polyester filament also “does not follow martial ethics” and “sneak attack” during the holidays of the weaving factory, and the price of polyester filament has started to rise again.
On the other hand, driven by the increase in the price of chemical raw materials, dye prices have also increased, and many dye factories have issued dye price increase notices. It is conceivable that if the order situation is good at the beginning of the new year, it is very possible that the dyeing fee will increase when the price of dye increases.
With the prices of raw materials and dyeing fees rising, it will be difficult for textile companies to maintain low-cost gray fabrics. , fabric prices, so textile workers must be prepared for the “opening up” of fabrics in the new year.
RCEP is gradually implemented and has become a new bright spot in foreign trade
On November 15, 2020, RCEP included 15 member states The Regional Comprehensive Economic Partnership Agreement (RCEP) was officially signed.
At present, the relevant departments of our country are speeding up the domestic preparations for the agreement to take effect, and are ready to implement 85% of the 701 binding obligations involved in the agreement.
RCEP’s benefits to textile companies are subtle. Although it is difficult to bring about “big orders” in a short period of time, it can form a market similar to the “slow bull” in the stock market. This is particularly important for the textile market that is gradually recovering from the epidemic.
In addition, my country has recently stated that it will conduct active research on joining the CPTPP. Data shows that after China joins the CPTPP, it will bring huge economic benefits to itself and existing member countries, and trade volume will increase. With an increase of 50%, global revenue will increase by 76.7% to reach US$632 billion. Textile people can also have certain expectations in this regard.
In the new year, as the global epidemic is gradually controlled with the help of vaccines, textile people’s order business may see a significant rebound. In the process of gradual implementation of the RCEP agreement , it will also have subtle benefits to the textile market.;
On the other hand, as the market improves, the prices of raw materials and fabrics may rise. The layout of the weaving end by giants will also intensify competition in the future terminal market.
Therefore, the new year is bound to be a year where opportunities and challenges coexist. Textile people need to give full play to their own advantages and seize opportunities in order to remain invincible.
Finally, I wish the textile people
good luck in their careers,
good luck and good luck! </p
