In mid-May, a notice of price increase for gray fabrics once again caused waves in the gray fabric market. However, by next week, the gray fabric market has returned to calm, and the rumors of price increases have been quietly drowned out.
01 The price of polyester filament has increased significantly and is still on the upward trend
Since May, the price of polyester filament has been rising intermittently. It is also larger. Specifically, the current quotation of polyester filament FDY 150D is 6,270 yuan/ton, an increase of 920 yuan/ton from the end of April; the quotation of POY 150D is around 5,425 yuan/ton, an increase of 705 yuan/ton from the end of April; the quotation of DTY 150D is concentrated It is around 7,100 yuan/ton, an increase of 500 yuan/ton from the end of April. Although polyester prices have stabilized in the past two days, the price recovery has become a fact, and judging from the price chart, it is still showing an upward trend.
02 False claims for gray fabric price increase, but actually price reduction Polyester yarn has increased so much that in May On the 21st, some companies could no longer sit still and issued price increase notices. In addition, many business owners have verbally informed their WeChat Moments that the price of gray fabrics will increase, but the specific increase has not been clearly stated. In fact, such notifications are more of a hype gimmick. On the pretext of preparing for a price increase, customers are encouraged to purchase large quantities of gray fabrics before the price increase, so as to achieve the purpose of boosting performance and destocking at the end of the month.
And until the end of the month, the editor’s circle of friends seemed to have discussed it with everyone and kept silent about the price increase. Advertisements for selling fabrics are still being issued as usual, and the phenomenon of fire sales has only increased. For example, for five pieces of satin, a factory’s current quotation is 2.2 yuan/meter, but last week it was 2.3 yuan/meter. The price of raw materials has increased, but the price of gray fabric has dropped? Isn’t it a bit strange, but it is true. This shows that the market conditions are not enough to support the company’s price increase.
03 The market situation began to weaken, and gray fabric companies competed fiercely
In early May, following the international oil prices and polyester long Silk prices are rising steadily, and orders in the downstream gray fabric market have also seen a substantial improvement. The long-lost market orders have finally arrived, and domestic sales orders have also begun to increase. It can be said that except for the foreign trade market, there is a prosperous scene. But then when the editor visited the market, he discovered that the market had begun to diverge, and some companies were the first to realize that the market was beginning to weaken. This week, the signs of slackening have become more apparent, and many companies are feeling this way.
A weaving company that mainly produces polyester taffeta, Shumei silk, pongee and other market sheets said: “Last week, the regular gray fabric shipments were obviously very good, but this week it was average, and it was nearly half the amount compared with last week. . My colleagues all said the same, and I feel that the market is beginning to weaken.”
04 When others are raising prices, I am lowering them, but it is harmful to others and not beneficial to myself
The market performance is tepid, and orders will return again Under the situation of insufficient supply in the past, there are still many companies selling goods at lower prices and disposing of inventory at a loss. If the price of gray cloth is raised at this time, it will seem a bit out of place and deviate from the market. In terms of price, the company has completely lost its competitiveness in the market. With the same quality, fabric manufacturers will definitely choose manufacturers with lower prices. When the market is slow, it seems that this kind of vicious competition becomes more obvious. When its peers were preparing to raise the price of gray fabrics, a certain company went in the opposite direction and cut prices again. This kind of destocking effect does exist, but in the long run, it is harmful to others and unfavorable to oneself. Not only does it lose profits, but it also disrupts the market.
Summary
Add , the market began to weaken, and perhaps companies will start to grab orders later. Slower market conditions are to be expected. Last week, some companies expressed doubts about the continuation of this market. Most of them believed that the overall market trend was still on the downward side. Foreign trade has never recovered, and can even be said to be still stagnant, which will have a great impact on the entire textile market. For many domestic trading companies and clothing companies, most of their orders come from abroad. Therefore, if foreign trade does not recover, it will be difficult for the market to improve.
This wave of small orders in May may be just the result of domestic retaliatory rebound. The retaliatory and rebounding market can be understood to be temporary in a literal sense. After June, the traditional off-season will enter, and cloth bosses have already made preparations for the off-season.
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