The recent textile market has been affected by “dual control” and has experienced some turmoil. When the delivery date of the order has not yet been settled, the price increase has already begun!
The house leaked and it rained all night! Dyeing fees have just increased, and news of rising prices for raw materials and gray fabrics has followed! Polyester filament prices have generally increased by 100-300 yuan/ton in recent days. There is also news of rising prices in the gray cloth market. It is reported that some gray fabric manufacturers have recently raised the price of gray fabrics, and the range is also around 0.1-1 yuan/meter. The range of the increase is very wide, which shows that the market prices are uneven and quite confusing.
The boss of a weaving factory that specializes in T400, T800, and four-way elastic revealed: “Due to the recent shutdown of the weaving factory, Production capacity has dropped sharply, and the inventory of gray fabrics of various specifications is small, so the prices of various varieties have been increased by 0.5-0.8 yuan/meter.”
Mr. Wu, a weaving manufacturer that produces low-end products such as satin, said: ” We in Nantong were the first batch of companies to stop production. The market has been moving recently. After more than 10 days of shipments, the inventory of various specifications of satin is running out. It is natural to adjust prices, but we have not increased much, 0.05 yuan. / meter. Some small factories have increased a lot because their prices fell a lot in the early stage. Now they have increased by 0.2 yuan / meter, which is basically back to normal levels.”
It has been about half a month since the production of tens of thousands of looms in Nantong was suspended on September 10. After half a month of shipments, manufacturers have run out of inventory. Weaving manufacturers in other regions can only focus on clearing inventory.
01 Demand does not drive prices
Fabric price increases are usually affected by cost or demand factors. Although the overall performance of the textile market has been average recently, there are still varying degrees of shipments on the weaving end, but it is far from the real peak season. Most printing and dyeing factories are out of production, making it difficult for traders to receive new orders, which hinders the placement of orders to a certain extent. Therefore, the demand side is not the direct driver of this fabric price increase.
02 Cost fluctuations have little impact on the price of gray fabrics
On the cost side, the price of polyester filament has been in a “depressing” state, and there is a promotion every week, and weaving Most manufacturers buy on promotional days, so the price of polyester yarn is quite appropriate. Starting from the 24th, some specifications of polyester yarns have begun to increase. However, due to the recent shutdown of looms, downstream buying gas is also insufficient. Therefore, the increased price of polyester yarns has no impact on the gray fabrics currently sold. Then, this round of gray fabric prices is not caused by cost.
Obviously, the sudden stoppage of production and its long duration have caused some manufacturers that originally had small inventories to be tight in supply and reluctant to sell. , Price increases have become a natural thing and do not require too many reasons. But how long can price increases that are divorced from the demand side last?
The sustainability of gray fabric price increases mainly depends on the recovery of loom production in October. If large-scale production restrictions continue in October and production capacity is low, weaving factories will certainly have a strong desire to increase gray fabric prices. Especially when a certain specification of gray fabric is out of stock or out of stock, the price will naturally rise.
To cause a shortage of gray fabrics, in the final analysis there must be enough Shortage can only occur if supply is less than demand. October is supposed to be the traditional peak season, but this year’s market conditions do not seem to follow common sense. There is a possibility that the peak season in September will continue to be sluggish.
Editor’s Note
Amidst all the noise of “rising”, we also need to calm down. After all, until the market does not improve substantially, price increases will only cause price increases. Without a market, companies that maintain their original prices may make the market more competitive.
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