Recently a textile boss complained to the editor:
The price of 50S cotton yarn has increased by 8,000 yuan/ton, and the weaving factory is going crazy! And then – vacation early!
At the end of November, under the influence of resonance on the demand side and cost side, bulk textile raw materials ushered in different situations. The increase in prices, especially for spandex and nylon, is even more alarming. Entering December, stimulated by good news such as the signing of the RCEP agreement and vaccination in many countries, polyester filament yarns have also risen frequently, rising by about 600 yuan/ton in half a month. After a week of sideways prices, polyester yarn prices have risen again recently. momentum.
On the 30th, the price of some polyester yarns from a major factory in Tongxiang increased by 50-100 yuan/ton, and that of another major factory increased by 50-100 yuan/ton;
A major factory in Zhejiang The DTY part of the factory increased by 100-200 yuan/ton, and the FDY part increased by 50-100 yuan/ton…
At the end of December, stimulated by various factors, the raw material market once again experienced a surge, especially It’s the yarn market, and its growth rate is even more “astonishing”! It’s no wonder that some textile bosses said: They can’t bear it and they’re going to take an early holiday!
Limited orders, queues to get goods, raw material prices will rise!
A rayon yarn manufacturer said: “Recently, there are still a lot of orders signed downstream. We have started to sign orders in limited quantities. The orders on hand have been scheduled until February. During this period, raw materials are rising, which is good for us. It also has a certain promotion effect. Most customers feel that prices will not fall this year, so they are more active in purchasing goods.”
Another person in charge of a weaving manufacturer said: “Since December, the rise in raw materials has been caught off guard. , we haven’t been able to prepare enough goods for the end of the year, and now we can’t get the goods, and the elastic yarn is currently queued up.”
Recently, we learned from raw material manufacturers that many yarn mills’ production plans have been scheduled to 1-2 months later, as international crude oil prices remain high, the cost support for bulk textile raw materials is still there. Many raw material manufacturers are still tentatively raising prices, and downstream companies still have the intention to restock.
On the 28th, polyester filament production and sales performed well again. The average production and sales of mainstream manufacturers in Jiangsu and Zhejiang markets were 80%-100%, and some better factories could reach 180%. It can be seen from the recent production and sales charts that in November and December, the downstream procurement of raw materials accelerated significantly, with production and sales exceeding 100 almost every week.
Different from the intention to stock up in previous years, most textile bosses this year have a more optimistic view of the future raw material market. In the past, manufacturers who were more cautious about stocking up during the New Year Recently I have started to consider stocking up.
“I feel that the price of raw materials will rise in the future. We are going to stock up on raw materials this year, about a month after the new year.” Mr. Chen, a manufacturer mainly engaged in polyester taffeta and pongee fabrics, said.
Stock preparations are ahead of schedule, and the recent work activity is better than in previous years
As the end of the year approaches, due to the impact of the epidemic, many weaving companies are also arranging holiday plans, and some factories The holiday time will definitely be brought forward. Considering the negative factors such as upstream production, transportation, and logistics that the market may encounter after New Year’s Day, traders and manufacturers will purchase earlier this year than in previous years.
In addition, due to recent power restrictions, environmental protection and emission reduction, the start-up of weaving manufacturers in some areas has also been unstable. Some production areas have stopped supply due to steam and ignition, and the market has declined in start-up. Most companies are still producing at full capacity, so the overall operating rate remains above 80%. Compared with the same period last year, which was around 60%, the overall production enthusiasm of manufacturers this year is higher.
Therefore, manufacturers purchase raw materials in advance. In addition, driven by the rapid increase in raw materials in the early stage, the downstream gray cloth and fabric stocking needs are advanced. , the order signing of the entire industry chain is also better than the previous period, the industry inventory has declined slightly, and some work has produced inventory in advance to prepare for sales next year, so the demand for raw materials is also better than the same period last year.
In addition, due to the spread of the epidemic, the appreciation of the RMB, the surge in freight charges and other negative factors still affect the foreign trade market, many foreign trade companies are not very interested in receiving medium- and long-term orders or large orders, and most of them are hurrying up. Time is catching up with orders placed a year ago, so the recent activity in production and delivery is still continuing, but the volume of new orders is no longer as good as in the previous period.
“We are not going to take new orders after January 3rd, because weaving and dyeing factories will not be in a hurry to deliver goods. Rushing production will also affect the quality. It is better to give up some, at least reduce the cost. Own risk.” said Mr. Zhao, an imitation silk trader.
It has now come to the last day of 2020. Under the ravages of the epidemic this year, the textile industry has also “paid a lot.”
In the latest market research of China Silk City Network,�Most textile companies said their sales have shrunk by 20% this year. The epidemic has undoubtedly had a serious impact on the global economy. However, with the slow recovery of the global economy, everyone is cautiously optimistic about market demand next year. However, from the perspective of the raw material market, raw material manufacturers are still relatively strong in the short term, and raw materials have a “good start” after the new year. “The probability is also very high. Manufacturing companies can stock up appropriately to avoid rising raw materials in the later period and missing the best replenishment opportunity!
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