On the 25th, the Taihu Lake Shade Cloth Home Textile Chamber of Commerce in Siyang County issued a notice to adjust prices again: Due to the sharp rise in the price of chemical fiber raw materials and the rising production costs, In a state of loss, all members of the Chamber of Commerce decided to increase the price to 2-3 yuan/meter according to different products and different customers!
After the price adjustment on the 19th, less than a week later, the market adjusted prices again. The direct reason for the price adjustment was Or because the price of raw materials is rising too fast, weaving companies can no longer bear it!
Raw materials are rising fiercely, and weaving companies can’t bear it!
Due to favorable factors such as oil prices continuing to rebound during the Spring Festival holiday, vaccine progress being good, and the global trade environment improving, PTA and ethylene glycol saw a sharp rise after the holiday. Under cost pressure, polyester prices The quotations of silk companies have been increasing one after another. As of February 26, the price increase of various specifications of polyester yarn has reached about 1,000 yuan/ton.
In addition to polyester, cotton yarn, spandex, polyester staple fiber and T400 raw materials are also It’s like being on a rocket, going crazy!
During this period, raw materials have risen too fast. Downstream weaving companies have been unable to sit still and have frequently issued price increase notices. Many cloth bosses have said helplessly: “I can’t bear it anymore. I can’t do it without rising. What’s rising is the cost. It’s not profit!”
It is understood that most specifications on the market have generally increased by 0.3-0.5 yuan/meter, and some weights have increased by 1 yuan/meter. But this is far less than the increase in raw materials.
Be wary of gray fabric prices falling after the peak season
After the beginning of this year, the market has been booming. Driven by raw materials, Gray fabrics and fabrics are very easy to sell, but is this wave of sales driven by demand?
A cloth boss said: “Currently, domestic and foreign trade orders are Orders are being issued one after another, but they are far from as hot as the peak season. The current price increase of fabrics is mainly driven by raw materials. Among them, some middlemen are hoarding goods. They want to increase the price of fabrics and buy in large quantities when the prices are low. If you buy gray cloth, you can sell it after a surge and earn a certain price difference.”
Another trader also expressed concern: “The market is so hot now, and many manufacturers are placing orders, fearing that the price will rise again. , I am worried that the current wave of market conditions is actually moving the subsequent orders forward, which also means that after the current batch of orders are completed, it may be a long off-season.”
Therefore , even if the market is hot now, we must be vigilant. After the peak season, the price of gray cloth is very likely to fall again. First of all, because the gray cloth market is still in a state of oversupply. Starting from 2019, the new production capacity in peripheral areas is far greater than The eliminated production capacity in Jiangsu and Zhejiang, coupled with the good market conditions during this period, many manufacturers have resumed work and production ahead of schedule and are operating at full capacity. After the peak season, the inventory of gray fabrics is likely to break through the warning line again. By then, gray fabrics will be in a serious state. In the midst of overcapacity, in order to collect funds, manufacturers have to sell goods at low prices, and market prices will be disrupted again.
The editor would also like to remind all cloth bosses: Do not blindly stock up and produce goods, otherwise, after the carnival, there may be only chicken feathers left…
Postscript
Now the traditional peak season of “gold, three, silver and four” is just around the corner. Many companies said that the order volume will be at least until the end of March, and some companies said that the orders for the first half of the year have been filled. However, as the saying goes, haste makes waste. Nowadays, raw materials are rising too fast, which has brought problems to weaving companies and fabric traders. But it is a compression of profits. Compared with a sharp increase, the cloth boss still hopes that the price of raw materials can be stable. Raw materials, fabric production, and fabric sales all need to develop soundly and profits should be distributed reasonably so that the entire industry can proceed in an orderly manner.
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