At the beginning of last week, Sino-US trade negotiations resumed, and the United States stated that it would not impose new tariffs on China. As soon as this news came out, the polyester market immediately exploded. PTA once reached its daily limit, and so did polyester filament. Looking at this situation, many people are worried about whether the market situation in August last year will be repeated.
However, this wave of market conditions did not last long. In the middle of last week, raw materials began to stabilize. Near the weekend, some polyester manufacturers even cut prices due to the impact of PTA falling to the limit. Now the price of polyester filament has been temporarily stabilized, but the previous wave of raw material price increases has disrupted the market. How is the situation of weaving manufacturers and traders during this period?
Weaving manufacturers: Taking a break is to go further
“Raw materials will rise before orders arrive” is the most accurate evaluation of the weaving market last week. Everyone said that raw materials have risen. Fabrics will also rise a bit, but this is when the order volume is okay. The textile market is still in the off-season, and orders from end buyers have not yet been placed on a large scale, so fabric prices cannot rise at all. An enterprise integrating industry and trade in the Shengze area said: “There are not many orders now. We also want to increase the price of gray fabrics, but we can’t. If the polyester yarn goes up again, we won’t be able to bear it. If the business continues to be so bad, , we have the idea of reducing production or even taking a holiday.” It is understood that not only the bosses in Shengze area have this idea, but many bosses who have moved to northern Jiangsu, Hubei, Anhui and other places have also begun to take action. “Stop production and take holidays can reduce inventory. Alleviating the pressure of the current high inventory. Only by reducing the inventory can we have a breather.”
However, many manufacturers said that they would not stop production and take holidays even if they lose money, mainly because it is difficult to recruit workers. If production is suspended for holidays, there is a risk of losing workers. According to data monitored by China Silk City Network, the current operating rate of looms in Shengze is 80-90%, and manufacturers’ production enthusiasm has declined.
Traders: Don’t be blindly optimistic and wait and see whether end demand can improve
Everyone knows about Sino-US trade relations There have been several rounds of separation and resumption. Although Trump has now stated that he will no longer impose tariffs on Chinese exports, risks still exist! Trade friction is still an unknown quantity, so don’t be blindly optimistic.
There are too many uncertainties in the foreign trade market, and the boss of domestic trade is also worried about his hair. “For small traders like us, we can only accept some relatively small-scale downstream buyers. Generally, this In order to ensure their own profits, buyers often lower prices, etc. Sometimes even basic profits cannot be guaranteed. After finally negotiating the price, various quality nitpicks appear from time to time after the goods arrive. Not to mention payment, basically They will not pay in time, and it is common for them to be in arrears for several months, and some even be in arrears for more than half a year.” It is said that traders are like sandwich cakes, making money selling cabbage, and only care about selling white flour. This description is really perfect. Couldn’t be more appropriate!
The market situation ultimately depends on demand. Now the inventory of many garment factories and garment factories is at a high level, and insufficient demand has also led to the placement of orders. Slowing down, even the orders placed by some brand clothing factories are decreasing, which is evident in the terminal demand. If the order demand from garment factories and garment factories does not improve in the second half of the year, it will be difficult for the textile market to improve. The orders in the hands of traders are not expected to change significantly.
Afterword
Whether it is a weaving company or a trader, they are all grasshoppers tied on a rope. What we have to do now is to understand each other and actively respond to this ever-changing market situation. I believe that as long as we make our own products well, we will be able to survive this difficult time!
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