Recently, we have entered the traditional off-season, and the market conditions are showing downward signs. The boss of Youbu Bu is also confused about the second half of the year and can’t help but feel worried.
So will the price of gray fabrics rise in the second half of the year, and what is the probability of it rising? Or will the price of gray fabrics drop again in the second half of the year?
Demand may still be difficult to recover in the second half of the year
The results of the editor’s interviews and surveys show that most of the weaving bosses said that the price of gray fabrics will not rise in the second half of the year, and the reason is basically that the market will be difficult to recover in the second half of the year. .
On the one hand, the epidemic in the United States is spreading more and more seriously, with nearly 3 million cases of infection, and concerns about a second outbreak are lingering, making the world slightly pessimistic about future economic expectations. Therefore, people in the gray fabric market are also not optimistic about the second half of the year, and the current market situation has shown a downward trend. On the other hand, the recent tense relations between China and India still bring worries to the market. India is a major garment manufacturing country, and my country exports a lot of textiles to India. If the relationship between the two countries continues to be tense, it will inevitably affect the export of the textile industry.
The owner of an industry and trade company said that some factories are even selling at a loss in order to ship goods. It is estimated that in a short time If it cannot rise, the market may get worse later. The epidemic is becoming more and more serious, and the relationship between China and India is not good. I am afraid that the peak season in September and October will not come. There are no orders for the whole year. How can gray fabrics still rise?
The inventory of gray cloth is too high, and manufacturers are not enthusiastic about production
From the current inventory of gray cloth, the current inventory of gray cloth in Shengze area It has reached about 44 days, which can be said to be a historical high. In order to prevent the accumulation of gray fabric inventory, some weaving factories in the downturn have reduced their operating rates to varying degrees. Some netizens said that the weaving factory opposite had no inventory in previous years, but this year it could not escape the fate of inventory accumulation, and gray fabrics were piled outside the factory gate. We have a holiday every time a holiday comes, including 5 days on Tomb Sweeping Day, 5 days on May Day, and 4 days on Dragon Boat Festival.
A manufacturer that specializes in four-sided bombs is responsible for People reported that the current operating rate of the factory is about 70%, and the operating rate has been reduced since May Day. There may be holidays due to high temperatures, and the operating rate will drop further.
The price of polyester filament is difficult to support the price increase of gray fabrics
The most direct impact on the price of gray fabrics The factor is of course the cost of the raw materials. If raw material prices rise sharply in the second half of the year, it may cause gray fabric prices to rise. However, from May to June, the price of polyester filament increased by thousands of yuan, but the price of gray fabric remained unchanged, and there was still a decline in price. Even though the price of polyester filament has increased by a thousand yuan, the price after the increase is still much lower than the price in 2019 and is still at a low level. It can be inferred that if the price of gray fabrics is to increase due to high raw material costs, the increase in polyester filament must be very large.
The person in charge of a weaving manufacturer that produces conventional varieties believes that the price of gray fabrics will not rise this year, and the price of polyester yarn will also be difficult to rise, and even if it does, the increase will not be large. Compared with the loss of orders, manufacturers are still willing to choose lower profits. Even if the price of polyester yarn increases, it will be difficult for gray fabrics to follow the increase.
Based on the above three points, it is indeed difficult to increase the price of gray fabrics in the second half of the year. Fabric bosses don’t have to worry too much. Even if the price increases, it will be a unified price increase for the entire market. It has become a common knowledge that customers will understand better and accept the increase in fabric prices more easily.
</p
