I don’t know who cut out the thin leaves. The spring breeze in February is like scissors. ——Tang.He Zhizhang
On February 220 and 21, polyester yarn prices from many polyester factories Rising, ranging from 50 to 100 yuan. Upstream of polyester yarn, PTA futures continued to rise, with the cumulative increase in two days approaching 200 yuan/tons, spot prices have also risen accordingly; downstream, dyeing factories have been queuing for several days, and dyeing fees in many places have begun to rise.
As time gets closer and closer to the traditional “Gold, Three, Silver and Four”, the popularity of the textile market is increasing visibly. However, when chatting with the cloth boss, the editor also found that the situation is not as optimistic as it seems.
Live broadcast volume, small orders and more
Ordering small batches and multiple batches has become a major trend in the textile market. At this stage, this trend will continue, especially after the ups and downs of 2022 Since then, upstream orders have become more cautious. The traditional channels for consumers have undergone fundamental changes in recent years, turning into a model of live streaming and online ordering. Both traditional big brands and some small factories have squeezed into this track in order to expand their sales. The changes this track brings to the fabric market are small batches and multiple batches.
But this kind of order is relatively useless for textile workers. They can eat it, but they are not full. They cannot give textile workers a feeling of “I will be stable in the next month after taking this order.”
Money is due on the order, and the goods are ready to be shipped
Due to the cautious downstream stocking strategy, textile companies are facing considerable financial pressure.
For those who make orders, they can get the order before starting work. Although there is no inventory pressure, the time for customers to owe money has lengthened. Originally, it may have been one month to pay, but now it may become three months. It’s not that the other party is deliberately making things difficult, maybe it’s because their downstream account period has also increased, but in this way, the costs of raw materials, labor and other costs that textile companies have to pay in advance will increase, and the risks will also increase;
Although those who sell spot goods can get cash, if they want to achieve scale, they must prepare enough goods, which is another large sunk cost.
In short, whether you are making orders or spot goods, the financial pressure you have to bear is quite high.
If you don’t see the rabbit, don’t let the eagle fly
Although polyester prices are showing signs of rising, not all textile companies choose to stock up at this time. Many textile companies have developed the habit of “not showing off the eagle when they see the rabbit”, which is actually forced. .
Since the second half of last year, the overall market demand has been shrinking, but production capacity has been growing. Once textile companies are in full production, it is easy to have inventory problems, not to mention that the inventory left over from last year cannot be digested for the time being.
Therefore, although the price of polyester yarn has increased, production and sales only reached 100% on 21. /span>On 22 polyester production and sales fell sharply again, to 46%.
For many textile companies, it is not yet time to “take action when it is time to take action”.
Everything goes up, but profits don’t
It is because of the above reasons that today’s textile companies are relatively “humble” when receiving orders. In order to be able to ship goods smoothly and not exhaust the inventory too high, most of the final order prices are relatively low. of.
In the context of “consumption downgrade” around the world, even some well-known clothing brands and stores have to increase the priority of cost issues. Therefore, even some fabric suppliers that specialize in supplying high-end brands, The experience of being priced down in the past two years is not small.
Market inertia
The inertia of the market is determined by the mentality of textile people, and it is difficult to change in a short period of time due to temporary market fluctuations. In the summer of 2018, the raw materials had obviously risen to an obviously unreasonable level, but because the sales of cloth were so good in the first half of the year, there were textile people who took over the price no matter how high the price was; It is a similar situation now. After experiencing the sluggish market in the second half of 2022, a cautious attitude is not only about future expectations, but also about The continuation of the mentality in 2022 This cautious mentality may continue until there is no strong stimulus in the market.
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