Since late September, the price of polyester filament has risen like a rocket launcher. On October 8, the price of polyester filament rose again.
01 Polyester filament, gray fabric, and dyeing fees all increased
The polyester filament part of a large factory in Tongxiang increased by 50-200 yuan/ton;
Polyester yarn from a factory in Jiangsu rose by 200 yuan/ton today;
Polyester yarn from a factory in Xiaoshan rose by 50-100 yuan/ton today;
Zhejiang The price of polyester filament DTY from a major major factory in Xiaoshan increased by 100 yuan/ton;
The price of polyester filament from another major major factory in Xiaoshan increased by 50-200 yuan/ton;
……
The price of polyester filament has risen, and the most direct impact is to drive the rise of gray fabrics . The price of gray fabrics has been rising as early as September during the production shutdown period. Now the price of polyester yarn is rising steadily, which has boosted the overall price increase of gray fabric market.
In terms of dyeing fees, there has been a wave of increases since the production limit was suspended in September. In early October, the second wave of dyeing fee increases hit us. Some printing and dyeing factories issued notices that all products will be processed. Fee prices increased. After the second increase in dyeing fees, the price has reached a new high in the past two years. It is conceivable that the cost of fabrics has increased significantly.
02 Some fabric companies adjust prices
With the price increases for raw materials, gray fabrics, and dyeing fees, fabric prices can no longer hold up, and fabric traders finally issued price increase notices. Some companies have issued price increase letters, with fabric prices rising by 10%-15%, while others have issued fabric price increases of 0.15-0.3 yuan/meter. The rate of increase varies for each company, but price increases are already a fact and will become the next trend.
Early In the first half of the year, we summarized the market situation of the past half year. There were many orders, but little profit. It is conceivable that textile companies are operating at low profits. Due to excessive inventory, weaving manufacturers often cut prices and sell goods. Many of the sales at a loss are sales at a loss, struggling on the edge of profit loss. Fabric traders are also having a hard time. They are often priced down by customers. Competition among peers is fierce, and price wars are fierce. Profits are also falling again and again.
A person in charge of a trading company revealed; “This year’s profits are not as good as before. In the past, there was a normal profit of 20%, but this year it has dropped to 10%. Some orders do not even have 10%. Customers I often lower the price, and I refuse to accept some orders that are too low-profit. Especially since the prices of raw materials, gray fabrics, dyeing fees, and finishing fees have all increased recently, our fabrics will not be able to do without rising prices.”
Although some companies have issued price increase letters, fabrics have not generally increased, and only some companies have made increases. When raw materials, gray fabrics, and dyeing costs all rise, companies whose fabric prices have not yet risen obviously bear the cost of the increase themselves. And they choose to absorb the high price costs themselves. The reason is actually very simple. There are not many orders, so they want to win orders and retain customers.
This year, the slow recovery of the market is the most “sad” crux for weaving companies and traders. The overall transaction volume of the weaving market in September was not ideal. Although the market was starting up and downstream orders were gradually following up, compared with the same period in previous years, the situation was “poor”. Market orders were small and of mixed specifications, and downstream tourists still kept prices down. In addition, the foreign trade market is not ideal this year. It has always been tepid and difficult to improve.
Customs data shows that in August, textile and clothing exports were US$30.12 billion, a year-on-year decrease of 2.5% (a year-on-year decrease of 10.1% in RMB), and the decline was higher than in July. 7 percentage points. Among them, textile exports were US$12.52 billion, a year-on-year decrease of 14.8% (a year-on-year decrease of 21.5% in RMB), and a month-on-month increase of 7.1% in July. With the widespread vaccination and the gradual improvement of the epidemic situation, the export of epidemic prevention materials may decline significantly. It is expected that in the first nine months China’s textile and apparel export growth may have declined in March.
Whether fabric prices will rise generally, the editor believes that judging from the current market, this possibility is low. Although the current market is improving, it is still not as hot as the peak season. For most companies, if orders are not enough to maintain, it will be difficult to forcefully increase prices. When the general environment is not good, many companies choose to reduce profits to ensure the company’s operation.
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