The raw materials that have surged for half a month have finally begun to “cool down.” The price of mainstream raw material polyester filament has stabilized again this week.
However, looking back at the previous gains, both filament and short fiber have risen, especially cotton and short fiber futures have risen strongly. The main short fiber futures contract that has just been listed has continued to rise. There has been a sharp rise, and the daily limit price on the 19th has increased by nearly 20% compared with the listing price on October 12th. On the 20th, the price increase of the entire bulk textile raw materials narrowed, but since October, the price of bulk textile raw materials has been “full of red”.
There are many problems on the market The cry from the young boss: Please don’t think that our price increase is to increase profits, we are just “porters”. Some foreign trade bosses shook their heads and said: All kinds of expenses are increasing in price, and we don’t dare to take orders!
Raw materials are rising “violently”, and trading bosses are afraid to quote!
“Now the price of raw materials has been rising, and raw material factories are also engaging in hunger marketing. Some specifications of goods are in short supply, so we can only watch their prices rise.” Shaoxing Market said the textile boss. “Since September, some orders from India have returned, and our order-taking situation has also improved significantly. The operating rate has been increased to 90%. We could have stocked up on raw materials, but we can’t buy them now.”
In late September, as the domestic and foreign markets gradually released demand signals, the market order volume performed better, especially after the National Day holiday. The market was expected to be cold in the winter. Domestic trade orders also continued to improve, and foreign trade market orders also continued to improve. The small release has stimulated the enthusiasm of manufacturers for production and also increased the rigid demand for raw materials.
Raw material manufacturers also took advantage of the situation to increase their quotations. In just half a month, the price of polyester filament increased by 7.70%, and the yarn category increased even more, with an increase of 13.60%.
According to research, orders from garment companies in Jiangsu, Zhejiang, Guangdong and other places have also grown rapidly since mid-September, and the ordering period has been extended to mid-November, which has also driven demand for fabrics. During the National Day holiday, many weaving companies shortened or even canceled their holidays. The machines were operating at full capacity, which boosted the demand for raw materials and the market also ushered in a “highlight” moment!
Faced with the violent rise in raw materials, some textile bosses are retreating, especially foreign trade bosses. From the perspective of the entire industry chain, since the global economy has not fully recovered, it is currently difficult for many foreign brands and retailers to accept the increase in fabric quotations. In other words, the increase in raw materials, yarns and gray fabrics is difficult to pass on to end orders. This For foreign trade textile bosses who were already “walking on thin ice” this year, it is even worse.
“I haven’t dared to quote recently because the price of some gray fabrics has increased too much. Of course, the RMB has appreciated too much, which also makes me afraid to accept orders.” A foreign trade salesman Xiao Shen said. Rather than fantasizing about using raw materials to force downstream terminals to follow the rising trend, there is still some resistance in the current environment.
A long queue formed in front of the dyeing factory, and the delivery time was extended to half a month!
As far as the current foreign trade market is concerned, boosted by multiple factors, market orders have increased steadily, especially due to the epidemic in Southeast Asia and low manufacturing capacity, resulting in A small number of orders have returned, and market demand has amplified.
“We have been very busy recently. We have received several orders for polyester taffeta, mostly used for clothing linings. The price has not increased. The customer does not accept the price increase at all. Of course , what troubles me now is not only the rising price of gray fabrics, but also the slow delivery time of dyeing factories.” said Mr. Wang, a foreign trade boss who specializes in polyester taffeta and pongee.
It is currently the Double Eleven stocking season, and domestic trade orders are placed intensively, which takes up a large amount of dyeing factory resources. According to the monitoring of sample companies by China Silk City Network, the current delivery time of dyeing factories is about 10-15 days, and the delivery time of individual dyeing factories with large orders is 25-30 days.
According to the market situation in previous years, during the peak season, dyeing factories are out of stock. This delivery time is reasonable and normal. However, this year’s foreign trade orders are obviously fragmented, and customer delivery times are It is also half a month shorter than the 25-30 days in previous years. If the current shipping speed of dyeing factories is followed, many foreign trade orders may not meet the delivery deadline and face the risk of default.
Afterword
For the foreign trade textile boss who has been in the cold for more than half a year, The orders received in September for Thanksgiving, Christmas and other markets in Europe, the United States, ASEAN and other markets are undoubtedly the happiest moments. However, in the face of the violent rise in raw materials, dyeing factories are stuck in shipments, which has just begun to improve. , due to the market situation in which exports have been picking up intermittently.��, is undoubtedly a big blow.
Although China has done a good job in epidemic prevention and the manufacturing industry has recovered rapidly, which has led to a return of orders in the short term, but as time goes by As labor, raw material, rent and other costs increase, my country’s conventional products are still being tested in the international market. In addition, many foreign countries have experienced secondary outbreaks of the epidemic. Terminal demand may face greater tests. The future is full of challenges. Uncertainty!
In the short term, raw materials have risen sharply, but prices will fall again if they are not guaranteed, so you can only eat the high-priced raw materials you bought in the early stage. Enter. The editor reminds: The market situation is unpredictable, companies should stay on top of things and take orders with caution!
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