Since late March, international crude oil prices have fallen rapidly, with record-low oil prices frequently making media headlines and becoming the focus of everyone’s attention. Domestic investors are keen on bargain-hunting for crude oil. The bank’s personal investment business of “account crude oil” has been very popular recently, and products issued by ICBC have been bought up.
Textile chemical fiber raw materials closely related to crude oil are also affected, and some textile companies are buying polyester filament at the bottom. Recently, some gray fabric companies have reported that some of the polyester yarn worth 5 million yuan is used for production and inventory, and some are used for investment.
However, no one cares about gray fabrics, which are also at a low price, and no traders are buying bargains to stock up. The owner of a gray fabric company that produces conventional varieties reported, “Recent orders have dropped sharply, and the inventory accumulated since last year is too high, so I recently asked a trader I often cooperated with if he needed to stock up, and gave him the best price, but he didn’t. People who want it say they don’t have the money and dare not take it.”
Looking back on 2018, even though the price of gray fabric is relatively high, there are still many traders stocking up on gray fabric in large quantities. So what is the reason why traders don’t stock gray fabrics?
The market has entered a “no order to do” situation
In April, the order volume has not improved, but has further deteriorated. Some companies have reached the point where they have “no orders to make”. According to a salesperson from a large printing and dyeing factory, workers in the factory have already taken turns to work, which means the number of workers has been reduced by half. However, even so, the dye vats can only be opened at 60%, sometimes even 40%. The number of meters of gray fabric entering the warehouse per day dropped from the original 600,000 meters to 200,000 meters, a decrease of more than 60%. In the absence of orders, it is reasonable for traders not to stock up rashly.
It is still difficult to see an improvement in orders in April
As of April 13, Beijing time, the cumulative number of confirmed cases of COVID-19 worldwide exceeded 1.77 million, and the cumulative number of deaths exceeded 110,000. Among them, the United States has the largest cumulative number of confirmed cases in the world, with more than 520,000 cases. There are currently 2,089 confirmed cases in China, most of which are imported cases from abroad.
Judging from the above figures, confirmed cases are still soaring around the world, and April may be the peak period. Although European countries have recently announced unblocking plans, the risk of the epidemic causing a greater impact on the global economy is unavoidable. The progress of companies resuming production must be slow, and the recovery of clothing demand is also gradual. Therefore, it is difficult to maintain order volume for the time being. improvement. This is probably why traders do not stock up on goods.
The price of gray fabrics will fluctuate or be limited in the future
On the other hand, if raw materials rise in the future, it will be difficult for gray fabrics to follow the rise. Even if it follows the rise, the increase may not be very large. According to a senior weaving company The boss’s experience is that when the increase in polyester yarn reaches 500 yuan/ton, the price of gray fabrics is likely to rise, and the price of gray fabrics may rise by up to 0.1 yuan/meter. When the market is in a downturn, most of the increase of 0.1 yuan/meter is paid by the weaving companies themselves.
The market is sluggish, and there are voices of selling goods in the market. The price of gray fabrics has fallen within a very wide range, ranging from a drop of 0.2/meter to more than 1 yuan/meter. But if the market improves or even becomes popular, the price of gray fabrics will fall. It is very difficult for the price to go back up. The increase is often only 0.1 yuan/meter to 0.5 yuan/meter. Traders have also figured out the market price rules for a long time. It is difficult for gray fabric prices to rise in a short period of time, so there is no need to risk stocking up.
Editor’s Note
Nowadays, gray fabric inventories are generally high, orders are scarce, and traders have insufficient funds. Nervous, there is really no need to stock up. But when it comes to polyester stockings, the editor also hopes that cloth bosses can treat it rationally and do what they can. Finally, the editor believes that the epidemic will soon pass and the textile market will eventually see the light of day.
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