Entering September, the ups and downs of the plot made textile people feel emotional! The raw material market seems to be open and prices are rising frequently. In one week, the price of polyester filament has soared by 200-300 yuan/ton. In this season of “Golden Nine and Silver Ten”, gray fabrics are gradually showing a prosperous scene! And driven by rising raw material prices, traders are increasingly eager to buy goods.
The delivery of gray cloth is smooth and the price is increased
This week, under the influence of the sharp rise in international oil prices, polyester raw materials have risen across the board, which has also stimulated the enthusiasm of traders to purchase goods. Since this week, the trading atmosphere for gray fabrics has improved. For example, elastic fabrics such as T400 and high-elastic fabrics are in hot sales, and the frequency of shipments of linings such as lightweight textiles is accelerating. There are also some products that are in short supply and are snatched away as soon as they arrive.
The person in charge of a weaving company that produces stretch fabrics said: “After the price of raw materials increased, customers asked for more goods. Many varieties of stretch fabrics are out of stock, and they are basically sold out as soon as they arrive. And the prices have also increased. 0.01-0.02 yuan/meter.”
Boss Bu’s profits have not increased
Gray fabrics finally gained confidence and ushered in a long-awaited price increase. On the surface, it seems that weaving factories have confidence again. Upstream raw materials have surged, and downstream demand has picked up. Good news is coming. The dominance of gray fabric price increases is completely in the hands of cloth bosses. But in fact, flour in the current textile market is more expensive than bread, and the price increase only slightly reduces losses, and the original loss-making sales are cancelled.
01Enterprise feedback
An old textile master said: “After the price increase of gray cloth, it is still unknown how much money our textile workers can make. It may just reduce the loss a little. No one can bear the continuous loss of profits! It is impossible to continue like this in the long run. No one can afford it!”
02Enterprise feedback
Speaking of profit compression, Mr. Wang, who sells women’s clothing fabrics, said: “There will definitely be selling at a loss. The cost of fabrics made by ourselves plus freight may not be as cheap as fabrics collected from other places. The main reason is that the prices of some spot goods are particularly low. We There is no comparison at all. In the current market, whoever is cheaper will sell better.”
Low prices are still the market trend
When the epidemic struck, the rhythm of the market was disrupted, and the involution became serious, so “low prices” became king! Therefore, in such a market, it is not easy to increase the price of gray fabrics. The price change of raw materials is indeed an important indicator of whether weaving companies will raise prices, but more importantly, it depends on whether orders are sufficient and whether inventories are too high.
Although the market is partially recovering, compared with the high inventory in the early period, it is still a drop in the bucket. According to the sample data monitoring of Silkdu.com, the current water-jet and air-jet weaving inventory in Shengze area is 35.3 days, down 0.5 days from the end of August. Although the overall inventory of the market has declined, it is only limited to the products that have been selling well recently. The inventory of other products with mediocre sales has not been improved. Therefore, it is difficult to increase the price of unsalable products. Most of the popular autumn and winter fabrics such as polyester taffeta, pongee, and elastic fabrics have increased in price.
Affected by factors such as shrinking domestic and foreign demand, loss of order transfers, and fierce market competition, the development of the textile industry is currently facing greater pressure. If companies want to maintain orders, they can only maintain low prices and digest them on their own, and corporate profit margins are compressed. The increase in the price of gray fabrics by 0.01-0.02 yuan/meter will not change anything. The market is still fiercely competitive at low prices.
The prices of flour and bread have increased, but it’s not Boss Bu who benefits! At least in the short term, many textile bosses still have a headache when looking at the piles of inventory in their warehouses: Flour is more expensive than bread, where will we go from here?
Don’t worry, the editor will give you some advice!
We hope you can join
2023
October 17-19
Jiangsu (Shengze) Textile Expo
Estimated scale of the 2023 exhibition:
Exhibition area: 20000+㎡
Number of exhibitors: 450+
This year’s Shengze Textile Expo continues to adhere to the exhibition orientation of “building a platform, providing excellent services, exploring business opportunities, and promoting transactions”, relying on Shengze’s huge textile industry cluster advantages and market advantages to promote the world to the world.Display Shengze’s “original, original and popular” textile products in all directions, and build a three-dimensional platform for domestic and foreign merchants to promote exhibitions, investment and financing cooperation, investment transactions, and learning and exchanges, jointly promote the development of the textile fashion industry, and set a new benchmark in the industry. .
</p
