At the beginning of the new year, raw material prices rose sharply.
Compared to the beginning of November last year, the price of spandex has increased by nearly 30,000 yuan/ton
The price of nylon has increased by nearly 5,000 yuan/ton
The price of viscose has increased by nearly 5,000 yuan/ton
The price of polyester has increased by nearly 3,000 yuan/ton
The price of raw materials has risen so much, and the dyeing fees are not far behind. Dyeing factories all over the country have issued notices of increase in dyeing fees.
Faced with the sharp increase in raw materials and the increase in dyeing fees in a short period of time, how has the market reacted? Are there any hidden dangers?
The gray cloth market is booming
After the price of raw materials rose, the price of gray cloth also rose in response, and there was even a morning report. price, cancellation will be made in the afternoon. From the beginning of the year to now, the prices of various gray fabrics have increased by as little as 0.2-0.3 yuan, and as much as 2-3 yuan. Especially some fabrics containing spandex, because the price of spandex has skyrocketed.
Faced with such crazy price increases, fabric companies and traders have begun to purchase large quantities in order to control costs. Gray cloth, so the market after the Spring Festival has also seen a rare hot situation.
Reaching 300%-500%, more than half of the original inventory piled in the warehouse has been sold, and the factory is now operating at full capacity.
Four-sided elastic, one of the few bright spots in the market in the past two years, also showed very strong vitality in the market at the beginning of this year. Manager Wang, who is engaged in the four-sided elastic business, said that gray fabric Prices are rising rapidly, and some conventional specifications are selling very hotly, making people feel the charm of “gold, three, silver and four” in advance.
However, although the price of gray fabrics has increased, not all textile companies have seen an increase in profits.
The external quotation is 5 or 6 cents more expensive, but generally they will sell it if it is 2 or 3 cents more expensive. If it is more expensive, they will not accept it. However, there is a profit, and considering maintaining customers, it is okay to sell it. Just sold it.
But if you are a company with relatively small inventory, in order to be accepted by customers, the price increase of gray cloth may not keep up with the raw materials, and the profits will shrink somewhat.
The surge in raw material prices has not only stimulated the sales of gray fabrics, but also made some weaving companies panic.
Risk surges, Boss Bu starts to wait and see
The price of raw materials did not start to rise after the beginning of this year. In fact, more than a month before the Spring Festival, the prices of various raw materials began to rise sharply, and this also made some cloth bosses have the idea that one kind of raw material will rise to the end. the illusion.
Mr. Zhou, the person in charge of a textile company that mainly produces viscose fabrics, has been doing well recently. Almost half of the gray fabrics that were originally in stock for more than 40 days have been sold, but he is still not happy. Before the Spring Festival, due to financial pressure and considering the risk of falling prices, Mr. Zhou only prepared raw materials for about half a month. He did not expect the prices of raw materials to rise so crazy. The price of viscose increased by two to three thousand a year ago. Then it rose so much. The more the prices of raw materials rise now, the greater the risks involved, and the less likely they are to stock up.
If companies that bought more raw materials years ago were relatively less entangled, Mr. Qian, the person in charge of the weaving company mainly engaged in pongee production, prepared nearly two months before the year. raw materials, so he behaved calmly in the face of price increases after the year. However, he also said that there is indeed a risk of falling raw material prices, so there is no idea of increasing raw material inventories in the short term.
Not only weaving companies are panicking, but clothing companies also have certain doubts about this.
The pressure behind the price increase
Similar to the fact that weaving companies have begun to wait and see, traders and fabric merchants are seeing rising prices in gray fabrics. When it reached a high level, it also suspended the pace of placing orders. Mr. Wu, the head of a weaving company, said that there were a lot of orders at the beginning of the new year. After the price of raw materials increased,The orders are basically very few, almost the same as last year, and the goods can’t move.
There are three main reasons.
Low-price inventory consumes most of it
The same batch of cloth, if it is produced with low-price raw materials , customers can often negotiate lower prices than those produced with high-priced raw materials. As the gray fabric market becomes hot after the Spring Festival, the original low-priced fabrics in stock in the market are snapped up in large quantities, and fabric merchants and traders also have sufficient supplies on hand. For gray fabrics, interest in the next higher-priced gray fabrics will naturally decrease.
Terminal demand has not yet picked up
Dyeing factories have just started operations, and the market situation in the Year of the Ox has just begun. The market at this stage has not yet reached the real traditional peak season, and the demand for spring and summer fabrics has not yet begun to explode.
Raw material prices are trading sideways
After entering March, the rise in international oil prices has paused, causing ethylene glycol , PTA and other polyester raw materials fell after rising high. Although the price of polyester filament can be stabilized, the confidence in the continued rise of raw material prices has been hit. There is also a certain risk that the price of gray fabrics will fall back in the future.
Gold, Three and Silver can be expected
March and April are the traditional peak seasons for textile enterprises, known as the “Golden Three” Although the market has experienced a short-term decline as raw material prices stabilize at this stage, textile workers are still confident in the face of the next market situation.
Manager Wang of the four-sided bomb manufacturer: Foreign trade orders will improve compared with last year. Due to factors such as the epidemic in 2020 and rising sea freight, foreign trade orders have decreased. Foreign garment manufacturers and large supermarkets such as Inventories at Walmart and other stores have been reduced, and orders will increase this year, but it still depends on the subsequent rise in raw materials and changes in the U.S. dollar exchange rate.
Weaving boss Mr. Wu: The current price increase has been digested, fabric prices will gradually stabilize, and the market should become popular again.
Editor’s note: The sharp rise in raw material prices at the beginning of the year has indeed prompted many traders to place orders and stock up, but the terminal demand has not yet really arrived. When raw materials rise to the current high point , the market has seen a certain decline. However, the “Gold, Three and Silver” are just around the corner, and textile workers are still full of confidence in the upcoming peak season. </p
