How long has it been since you textile people saw a price increase notice? It’s been a long time, so long that many of us have forgotten what a price increase notice looks like. You must know that in the past, various price increase notices from dyeing factories, weaving factories, dye factories, raw material factories, etc. were sent out in turn every year. Especially during the peak season, the prices would change every day, and there was no time to issue notices.
But yesterday, May 21, a gray fabric price increase notice suddenly appeared in the circle of friends, allowing all of us textile people to “review” what a price increase notice looks like. The general meaning of the notice is that because raw material prices continue to rise, it is recommended that all member companies increase the price of gray fabrics by 0.5-1 yuan/meter. This increase is not small. After all, the profits of many gray cloth merchants are only a few cents, or even only a few cents.
But all textile people who understand the “price increase notice” know this , various reasons such as rising raw material prices, rising labor costs, rising rents, etc. are generally excuses. The real reason for daring to increase prices is usually that there are too many orders, market supply is less than demand, and manufacturers have full say in prices.
Could it be that the rise in gray fabric prices this time also hides the fact that the market is improving and there is no time to place orders?
Orders are not as good as the previous period, and the market has fallen again
There were still a lot of polyesters on the market a while ago. Orders for taffeta, imitation silk, and nylon are still being made, but they quickly dissipated in less than half a month. Especially with the gradual arrival of summer, the off-season atmosphere seems to be getting stronger and stronger!
“Two weeks ago, we had 2 million meters of polyester taffeta in hand. Because it was a finished product, the profit was still okay, about 0.5 yuan/meter, but now suddenly There are no orders anymore,” said a trader. Polyester taffeta has been very popular recently because it has something to do with anti-epidemic supplies, but the epidemic is not over yet, and the peak season of polyester taffeta is gradually coming to an end.
Of course, there are more than these. Although orders for seasonal fabrics such as imitation silk and nylon have been hit hard by the epidemic, fortunately, after the domestic epidemic is controlled, they are still snatched up in the cracks. Get part of the order. Printing and dyeing factories were once flooded with orders for sun protection clothing, summer women’s clothing, etc., but now there is no sign of hot sales.
Judging from the orders in the hands of traders, the market seems to be not only showing no signs of improvement, but is heading towards a worse situation. As a distribution center for various fabrics, is the situation different for printing and dyeing enterprises?
Production capacity is less than 30%, workers should take more breaks and chat
The dyeing factory takes orders for various fabrics, and is also tied to the fate of various fabrics! If a certain fabric sells well, the dyeing factory will naturally have a lot of orders. On the contrary, there will be a shortage of orders. However, dyeing factories can produce many types of fabrics. Naturally, when orders for a certain fabric decrease, other fabrics will more or less make up for it. The degree of decline in orders from dyeing factories is always limited.
However, this year, dyeing factories have experienced a comprehensive and long-term shortage of orders, which means that many types of fabrics are continuously unsaleable on the market. According to the person in charge of a dyeing factory, except for the beginning of the resumption of work after the New Year, the factory’s production capacity once reached 100% due to the backlog of orders caused by the epidemic shutdown. But after that, it was less than 50% for a long time, and in the past few months it has dropped to less than 30%. The factory has already reduced production and taken two months of rest. This year’s long off-season and lack of hot-selling fabrics are something their factory has never encountered before.
Without orders, the workers in the dyeing factory have nothing to do. Although most factories are already on rotation and there are not many workers on duty, even these few workers seem a bit redundant in the dyeing factory. It is very common for twos and threes to get together and chat. Although there are a lot of gray fabrics piled up outside the factory, many of them are orders canceled halfway by customers.
Lack of orders is still the norm in the market, and the market has not improved at all. sign. It seems that the reason for the price increase of some enterprises’ gray fabrics has little to do with the increase in orders, but simply because of the increase in the price of upstream raw materials. But then again, a price increase without demand means there is a price but no market, even if the price of raw materials is rising. What’s more, many gray fabric factories in the current market are shipping goods at a loss, and price increases are very difficult to resist in the current market. Whether the price increase can gain market support and whether it can last is still unknown. </p
