For today’s textile companies, orders are definitely the primary concern. Orders represent demand, it means that inventory will no longer accumulate, and it means that the company can continue to produce and operate normally. But the current fact is…
The promised golden nine and silver ten textile peak seasons
Why don’t you feel very prosperous?
September is already halfway through, and the legendary days of Gold, Nine and Silver have arrived. The textile market seems to have reached a watershed again. Currently, many textile bosses are fighting in the market, and some seem busy. , but the profits are even lower. This may be the beginning of another round of reshuffle.
The decline in international oil prices and the continuous increase in product inventories have driven the entire polyester industry chain downward, once again blocking the path to destocking the originally low-profit polyester filament yarns. cast a shadow. Since September, polyester filament has been promoted many times, and recently, polyester factories have lowered prices by 150-450 yuan/ton. However, the promotions since September have ended up with average weekly production and sales at about 50%, and the trading atmosphere is quite sluggish. The “buying increase” failed, and the “promotion” also failed. The factory inventory pressure is slowly increasing under the current situation of continued light production and sales, and the life of the polyester factory is getting more and more difficult!
Relative to the price of raw materials, what has a greater impact on the price of gray fabrics is the poor order-taking situation of weaving enterprises. The textile industry is subject to strong seasonal influences. To put it simply, it depends on the weather.
A common pattern among weaving companies in previous years is to accumulate inventory during the off-season, and then sell it collectively during the peak season. There is a big gap in the number of orders in the off-peak and peak seasons. But this year, the orders received by weaving companies do not seem to have increased significantly.
Recently, the domestic textile market is gradually turning sluggish, mainly reflected in unsalable products and reduced orders; sales prices have fallen, and market pessimism lingers. The start-up of downstream weaving enterprises is low, the inventory accumulation of gray fabric enterprises is increasing, new orders are weak to follow up, upstream costs are high, market transmission is poor, and weaving factories have poor profits from receiving orders. According to the requirements of Jiangsu’s dual control policy, a large number of weaving companies in Nantong will stop for 20 days from September 10 to the end of the month. After the end of September, a three-day open and one-day stop policy will be implemented, and the production capacity will be restored to 75%, involving jet and There are approximately 30,000 and 20,000 rapier looms respectively. Affected by this, the Nantong market shrank again, and the remaining markets continued to be weak. The peak textile season in September was not as expected, and the foreign trade situation was still uncertain. Textile companies were cautious about orders in the second half of the year.
Gold, nine, silver and eleven are hard to describe, what’s going on?
I believe everyone is no longer unfamiliar with Double Eleven. Likewise, the textile market is also very familiar with Double Eleven. Textile fabrics are used in large quantities on Double Eleven every year. , buyers and sellers will prepare before Double Eleven, which will push the price of gray fabrics to a high level during this period.
According to market research, some clothing companies and traders began to hoard fabrics on a large scale after May in anticipation of repeated orders returning during the early epidemic. In addition, shipping costs continued to rise. Orders originally placed by foreign trade companies after September have also been advanced to before August. There is a certain amount of fabric inventory from terminal clothing to traders. When the market raw material inventory is saturated, it can be imagined that in September and October The main clothing and fabric traders no longer dare to stock up on goods, and the placement of orders has naturally slowed down.
The decline in orders for some weaving companies is still very obvious. Under such circumstances, weaving companies are naturally not as active in purchasing polyester yarns as before. The enthusiasm of enterprises to buy silk has decreased, and the price of polyester filament has also begun to fall. But on the other hand, a previous survey showed that nearly half of the textile people are optimistic about the market during the peak season, and nearly half of the textile people still plan to stock up on raw materials because of the improvement in orders.
But it is unrealistic to say that the market has not started. Indeed, there are still signs of the peak season. Some clothing companies are still placing orders one after another. But why don’t you look at it? Whether the orders from weaving factories or the production and sales of raw material factories are so sluggish, in fact, in previous years, it was normal to stock up on goods during the off-season and sell during the peak season. However, due to the epidemic and fluctuations in sea freight, companies stocked up too much goods. In the second half of the year, September In October, when sales are poor and the financial pressure is initially high, it is the time to sell goods to withdraw funds. When high inventory encounters a big sale, you can imagine it!
On the other hand, downstream clothing orders are stagnant, while upstream polyester and gray fabrics are still expanding. This year, the production capacity of the polyester market has been continuously released, and the industry’s operating rate has remained high. After the epidemic situation improved this year, gray fabric production capacity once again exploded collectively as textile equipment was put into operation in the central and western regions. And if the sales of the Golden Nine and Silver Ten are still affected, textile companies with long-term overcapacity and serious credit sales will also be affected, so the end of this year is a relatively sensitive period. </p
