This week, polyester manufacturers’ weekly sales came as promised, but polyester production and sales are still sluggish. The overall production and sales of polyester are around 50.6%, and the price of gray fabrics has also fallen with the decline in polyester prices. , Polyester gray fabric products generally dropped by 2-5 cents/meter.
The price reduction of gray fabrics is inevitable in the current environment. The decline of raw materials, The increase in production capacity, the lack of market orders… various reasons have led to the decline in gray fabric prices.
The cost-end support is broken
The price of polyester yarn in October is almost daily, which makes the price of polyester yarn rise like a rocket. However, the general trend of the world is rising. There is bound to be a fall, and soon at the end of October, in the face of sluggish polyester production and sales and declining costs, promotions began, and a once-a-week promotion model was started. Now entering the third week of weekly promotions, polyester production and sales are still the same. There is no turning point in sight, and it has even reached the embarrassing situation of not exceeding 100 sales for ten consecutive days.
I still remember that a month ago when the polyester yarn was rising, weaving merchants were expecting the polyester yarn to fall, but now the polyester yarn is starting to After weakening, weaving merchants began to express their helplessness again. The drop in costs left gray fabric prices without support and could only follow the decline. Now they are holding high-grade yarns purchased at that time, and their profit margins have been compressed.
Mr. Zeng, who is mainly engaged in pongee spinning, said: “Now that raw materials have fallen, we have to do so too. Raw materials have fallen. If we buy up and not down, we just want to wait and see if it can get lower.”
Mr. Tian, who is mainly engaged in trade, said: “Now polyester products have generally fallen by about 2%, mainly due to the decline in raw materials.”
Capacity recovery
At present, power rationing has basically been suspended in Jiangsu and Zhejiang, so the operating rate of weaving merchants has also been significantly improved. It can be seen from the figure that the operating rate has returned to the average level of previous years. The current operating rate is around 75%, while gray fabrics have previously increased. Another reason for the price is that low production capacity has led to tight market supply. There were once manufacturers with “0” inventory in the market. However, due to excessive destocking before, the current social inventory is still at a relatively low level, which is basically the same as in 2018. The level was the same last year, but the current inventory can be considered to have stabilized and is in a relatively stable state.
Mr. Zeng, who specializes in pongee textiles, said: “Now we have almost no inventory in the factory, and we sell them as soon as they are made. ”
Mr. Lin, who mainly sells nylon products, said: “I have inventory here. Yes, it’s okay but not a lot.”
Market demand is flat
With the end of “Silver Ten” and the suspension of power rationing, the current The market seems to have returned to the previous flatness in July and August, and orders have been tepid again. However, now that the climate is getting colder and colder, society’s demand for cold-proof clothing is getting higher and higher, and the best-selling terminals will definitely drive orders in the textile market. And now that the startup rate has rebounded, there is no need to consider the issue of delivery delays.
Mr. Zeng, who is mainly engaged in pongee spinning, said: “The orders are not very good now, but I believe the market will definitely be better in the future. Go well! There will be a wave of orders at the end of this year.”
Main Mr. Lin, who sells nylon, said to us: “Orders are currently average, but they should get better next year, and there will be another market situation before the year.”
Mr. Tian, who is mainly engaged in trade, said: “There are not so many orders placed now, and the market outlook is not too clear. Let’s take it step by step.”
At present, most bosses are still optimistic about the direction of the market. This year’s “Double La Nina” climate is followed by a severe cold wave behind the warmth. The cooling of the climate is bound to bring a good New Year’s Eve gift to textile people before the end of the year!
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