Raw materials have a good start
In terms of polyester filament, international oil prices have risen sharply, which has obvious benefits on the cost side. The price of polyester filament has increased by 200-300 yuan. Yuan/ton;
In terms of viscose, the industry’s buying momentum is booming, and the downstream chasing atmosphere is obvious. The quotation of viscose staple fiber has been increased by 400 yuan/ton, and the high-end transaction price is 11,500 yuan/ton. tons;
In terms of spandex, with the support of the cost end, some mainstream manufacturers have raised their quotations by 1,000-2,000 yuan/ton, among which Xinxiang Egret spandex 40D specifications are quoted at 42,000 yuan/ton, which is higher than The price was increased by 2,000 yuan/ton on the previous day;
2021 has just begun, and the textile boss is “happy” about the increase in raw material prices. I don’t know whether it is a surprise or not. sad. In fact, many textile bosses have been prepared for this wave of price increases. During an interview and survey at the end of December, the editor found that almost all textile bosses were bullish on the price of bulk textile raw materials in the future, so the enthusiasm for purchasing raw materials this year was also better than the same period in previous years.
“We have been purchasing since late December. I was originally bullish on viscose staple fiber to 11,300, and now it has exceeded my expectations, but the raw material factory said that it may be possible in the future. It will continue to rise, so we still need to prepare some raw materials.” said a person in charge of a cotton mill.
“The raw materials have increased a lot now, and I don’t dare to prepare more. But looking at the momentum, I feel that it will increase a bit. This year, I have taken more than one month of raw materials. More than in previous years,” said Mr. Wang, the person in charge of a factory that makes workwear fabrics.
We have experienced an unusual year in 2020. With the release of good news such as free vaccines for all and the completion of China-EU investment agreement negotiations, the domestic textile market has been in high spirits, which has also given capital There are more opportunities for speculation in the market, and raw material prices are taking off again. At present, we know from raw material companies that whether it is polyester filament, viscose, or spandex, the inventory is at a relatively low level. In addition, on the eve of the Spring Festival, there is generally a demand for restocking downstream. With the fundamentals performing well, it is no wonder that Raw material prices will frequently rise.
But for textile bosses who are busy rushing to make orders before the Spring Festival, is this a good thing?
After New Year’s Day, driven by frequent increases in raw materials, traders also stepped up their stockpiling of gray fabrics. Recently, I learned from weaving manufacturers that due to the rise in raw materials, the quotations of some marketable products, such as imitation silk, four-way elastic, etc., have been raised, and there is room for an increase of 0.05-0.10 yuan/meter. The market supply has also improved.
We learned from the sample companies monitored by China Silk City Network that since the second half of December, the market’s gray fabric inventory has been steadily declining. The current gray fabric inventory in Shengze is about 40-41 It dropped about 1-2 days month-on-month.
“Raw materials are estimated to have fallen to the bottom, so the price of gray fabrics has also It’s almost done. After preparing to make some inventory this year, I will give myself a holiday,” said a trader. In recent years, due to fierce market competition and unstable raw material prices, he did not stock up in 2019, but he chose to stock up at this time this year. In his eyes, it was nothing more than bullishness on the future price of raw materials and gray fabrics, so he did it in advance. Prepare.
“We have received some orders recently, and now we are rushing to weave gray fabrics. In the fourth quarter, our foreign trade orders have improved compared to the previous period. Recently, the price of raw materials has increased, and customers are also targeting this time. Place the order in advance, since it is conventional cold-proof clothing fabrics anyway, and for them, stocking up at low prices is also a kind of speculation.” Another Mr. Chen, who specializes in cold-proof clothing fabrics, said.
It can be seen that the price of raw materials continues to rise, which will still help the sales of gray cloth. Therefore, some textile bosses are still happy to see raw material prices rise. After all, the downstream industry is also in the replenishment stage at the end of the year. The top-down resonance of the industrial chain can also restore the market mentality.
Of course, for some textile companies with greater inventory pressure, the continued rise in raw materials may become “the last straw that breaks their backs.”
The person in charge of a company that specializes in women’s clothing fabrics said: “This year’s orders have been very few, and the raw materials are now at a high level, so we don’t dare to replenish the stock. We are also currently considering how to To survive, we are preparing to relocate the factory to Anhui to reduce some additional costs.”
The director of another weaving factory whose inventory has been low for more than three months also said that it will still maintain inventory at 7 in the near future. Construction started at around 20%. Although there are orders,�Don’t dare to carry a high load, otherwise the inventory produced from high-priced raw materials cannot be realized and the pressure will be too great.
Preliminary verbal quotations are invalid! Raw materials are approaching the turning point of the industry!
In fact, judging from the operation of raw materials by textile bosses this year, anyone who has spare funds on hand will stock up, not for speculation, but for bargain hunting. 60% of the demand in my country’s textile and apparel industry is domestic and 40% is overseas. After the global epidemic broke out, many foreign trade companies also turned back to the domestic trade market to compete, resulting in the overall oversupply pattern of the textile market not ending. improve. However, the year-on-year growth rate of domestic clothing retail sales has maintained positive growth for four consecutive months since August. Therefore, under the dual influence of low clothing replenishment in 2020 and rebounding demand in 2021, the demand side is expected to usher in a certain proportion of growth this year. .
In addition, due to Saudi Arabia unilaterally cutting production by 1 million barrels per day, which is about 10% of current production, OPEC+’s plan to increase production by 500,000 barrels per day in January was canceled. A complete reversal will lead to a tightening of the oil market in the first half of 21. Oil prices reacted strongly to this, with US crude oil prices standing at US$50, which also provided strong support for textile raw materials.
From this point of view, the inflection point for bulk textile raw materials may have been determined after experiencing “floor friction” in 2020. However, if the raw materials continue to rise so strongly, it cannot be ruled out that some weaving manufacturers will not be able to bear the holiday in advance for the New Year!
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