Have the raw materials increased? Desire rises! Is the market coming? Tathagata!

The time has come to the end of 8, and it is getting closer and closer to the traditional “Golden Nine and Silver Ten” in the textile industry. According to past experience, it is almost time for orders to burst out. How is the performance of the textile market today?

Ingredients? Desire

Whether the market is coming or not, raw materials will not be absent. Compared with last week, there has been some fluctuation in raw material prices this week.

Among them, the one with the greatest fluctuations is PTA. PTA Due to strong cost support, the polyester plant has been operating at a high rate. Under the circumstances, its own fundamentals are performing well.

Ethylene glycol supply increased as some units resumed production, but the overall price still rose.

As for polyester filament, as the profit margins of downstream weaving companies have been greatly compressed, it is difficult for weaving companies to accept the increase in raw materials without increasing the price of gray fabrics, so the increase is not large.

However, the army has not yet moved, and grain and grass are taking the lead. Some weaving companies have already expected the price of raw materials to increase, so they have begun to purchase raw materials in advance. The production and sales situation this week was relatively good, with the average weekly production and sales reaching 115%, an increase of 35% compared with the previous cycle.

Overall, the raw materials are in a “ready to move” state. Has it gone up? Like rising!

Order? Tathagata!

To support the rise in raw materials, it is more important to have orders. What is the current order situation?

If I had to sum it up in one word, it would be polarization. There are both good and bad opinions, with a huge gap in between.

Mr. Li, who makes elastic fabrics and four-way elastic, said that their market has been launched for more than half a month. Their products are mainly exported to South Korea. Orders from old customers are very stable, and the payment period has not been extended. He believes that this year Business in the second half of the year will be better than the same period last year.

But Mr. Sun, who is mainly engaged in foreign trade with the United States, said that the current market situation is almost the same as before. Exports to the United States have declined significantly this year, and there are still only some small orders.

In terms of dyeing factories, the performance of some dyeing factories has indeed improved. The dyeing factories at this stage are indeed busier than in the past. It is understood that the delivery time has increased from 7 days in the past. It has been extended to 10-15 days now. Although there is no queue yet, the number of warehouses has increased significantly compared with the previous period.

However, some cloth bosses reported that the delivery time of some dyeing factories has not increased. In the past few days, it is still several days ago, and the number of dye vats has not been increased. Overall, the printing and dyeing operation rate this week was 67.2%, an increase of 1.2% from last week.

In terms of looms, the operating rate of looms this week was 70.5%, an increase of 1.4% from last week.

In general, the market has moved, but not all of it; orders have come, but not all of them.

This situation occurs mainly due to two reasons.

First, foreign trade exports are tightening.

Except for emerging markets such as Africa, the Middle East, and Central Asia, which are still growing, market demand in traditional developed countries such as Europe, the United States, and Japan has shrunk to varying degrees.

According to US dollars, In July, my country’s textile and clothing exports27.115 billion, a year-on-year decrease18.3%, including textile exports11.15 billion US dollars, a decrease of 17.8%, Clothing exports were US$15.96 billion, a decrease of 18.7%.

Such a large export decline has aggravated the oversupply situation in the textile market.

Second, there is too much stock in the market.

Some time ago, many textile company owners had doubts. Although the demand was not good, the fabrics woven could always be sold as long as the price was cheap enough. There are various speculations about this in the market, but no matter what, these cloths are located in the middle of circulation and have not entered the hands of consumers, which is an overdraft of future market conditions.

When the price of cloth is low, these cloths may still be available, but once the price of cloth increases, these cloths may be put into the market in large quantities.

Postscript

In the future, raw material prices may increase with the arrival of the traditional textile peak season. However, for many textile companies, the current situation of oversupply is difficult to change, and it is difficult for the profits to be significantly improved due to the peak season. On the contrary, it may be further compressed due to raw material prices.

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