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[Orders hit hard at the end of the year! What exactly is the close of the textile market?]
Release date:[2019/12/25] Read a total of[629]time

Raw materials continue to rise, dyeing factories keep rushing orders, and traders are busy delivering ... If you judge based on the current scene, I believe most people will feel that this year's textile market is very good.


However, as we all know, the textile market this year can be said to have been particularly bad in recent years, and many textile people have complained. But at the end of the year, the market suddenly seemed to be "well". What is going on?


The price of raw materials rises, orders cannot be completed, and the textile market welcomes a "closed door"

 

Starting from December 11th, polyester raw materials started a wave of uptrend. As of December 19th, polyester FDY with a large increase rate rose by 400 yuan / ton in nearly one week.


The printing and dyeing enterprises also showed a busy scene. As the New Year approaches, printing and dyeing companies have issued holiday notices, but in the holiday notices, we can find something different from the past. From the following notices, we can see that some printing and dyeing companies have begun to request delivery with payment. Dye factory bursts, queues, and take delivery with payment, that is only a thing that happened in the past in the peak season. Although there are reasons for the end of the year, the hot situation of the dye factory can be seen.


Some traders are also the same. Products such as artificial silk, imitation memory, and four-sided elastic have recently shown very obvious signs of recovery. Due to the delivery of some orders just years ago, as the holiday time gets closer, it has become a busy time for some textile people throughout the year. In particular, the artificial silk has occupied the "C position" in the market at the end of the year. The general manager Wu of an old-fashioned artificial silk production company said that their orders may not be completed this year, and even they have been queued to next year.


When the holiday meets the upper limit of production, the demand at the end of the year is concentrated.

 

Good Sino-US trade


On the 13th and last Friday, after the joint efforts of the Chinese and American economic and trade teams, the two sides reached an agreement on the text of the Sino-US diyi economic and trade agreement based on the principles of equality and mutual respect.

On the evening of the 20th, the heads of state of China and the United States exchanged telephones, and Litong eased the differences.


The textile people generally believe that the Sino-US trade friction is the main reason for the sluggish textile market this year. The trade friction was eased. Although new orders cannot be brought immediately, the confidence in the textile market next year is definitely a huge Boost. Affected by this, weavers became more decisive when placing orders at the end of the year.


New Year's Eve Meets Dye Factory Limitation


On the morning of the 17th, the Wujiang District Government held a special action deployment meeting on "Sprinting for 15 days and striving to increase the blue sky", and the production of setting machines in Shengze was restricted by more than 50%. From past experience, unless urgent delivery is required, the short-term production shutdown will not affect the textile companies. But unfortunately, because the New Year is early this year, the "dead line" of the holiday at the end of the year is more than half a month earlier than in previous years. These two things came together. The situation of "out of stock" in the dyeing factory can be understood.


Demand has always existed, but concentrated outbreak at the end of the year


In fact, the demand for conventional products in the market has always existed, but has been masked by the excess capacity in the past two years. At the end of the year, the textile company's stock preparation for the coming year was also "conventional operation", but after these orders broke out at the end of the year, the impact on people was very great.


In addition, there are some psychological effects. After all, the current market price is actually not much higher than in previous years, but compared with the very poor market prices for the rest of this year, it seems to be “standing”, it can only be said that there is no harm without comparison.

 

Behind "Close the Door Red" is a bit "virtual"


Through market visits, it was found that such a seemingly prosperous market is still a little "virtual", and there are no small hidden dangers.


Downstream does not buy the price increase


From the market survey, we found that some weaving companies do not accept high raw material prices. Such weaving companies generally produce conventional products such as Chunyafang and polyester taffeta, and lack stable customers to digest production capacity. In the best case, inventory will accumulate very quickly.


There are not many such enterprises in the textile market, and they are also the main force in purchasing raw materials. For this type of weaving enterprises, the pressure of funds and the pessimistic judgment on the market next year have made them not to buy the price of polyester raw materials.


In fact, this is indeed the case. In terms of production and sales, according to the data monitoring of China Silk Capital Network, the increase in polyester yarn prices on December 11 led to a wave of production and sales, but since then, polyester production and sales have fallen into a more sluggish situation, and only one day has passed. Hundred quotes.


In terms of prices, starting on December 20, the rise of polyester filaments stopped, prices began to stabilize, and raw materials such as PTA and ethylene glycol began to fall.

 

Inventory remains a big issue

 

In terms of polyester filament inventory, although the polyester factory has recently increased its output reduction efforts, the polyester factory inventory has decreased slightly compared with the previous period, but it still exceeds 20 days. After investigation, we can see that weaving companies 'vacation time is generally around New Year's Day. As the vacation time is getting closer, weaving companies' stocking has been completed at the end of the year. The production and sales of polyester factories may have a large scale The decline will also return to the stage of accumulated inventory.


Weaving mills are clearly polarizing. Orders rebounded slightly at the end of the year, although weaving companies were driven to remove a portion of their inventory, but only limited to some products such as artificial silk and imitation memory. For products such as Chun Yafang and polyester taffeta, due to the impact of excess capacity, inventory problems are still more serious. Excessive inventory will adversely affect the production and sales of weaving enterprises in the spring of next year. It will take longer for the textile market to really pick up.


Source: Global Textile Network


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