On April 29, under the pressure of excessive polyester inventory, major polyester factories started promotions at the same time, with promotions ranging from 200 yuan/ton to 500 yuan/ton. Under the strong promotion of polyester factories, weaving companies that usually buy and use raw materials have also begun to replenish their stocks. Early that morning, the production and sales of a large factory in Tongxiang exceeded 400% in one hour.
Take retreat as a way to advance. Big promotions find ways to release high inventory. Your raw material inventory may not be able to support the next wave of promotions!
In recent years, the market has fluctuated violently due to the continuous outbreak of overseas epidemics. The entire textile industry chain, including domestic and foreign trade, has been cautious in placing orders. When purchasing raw materials, most weaving companies also use random Buy as you go strategy. This strategy also leads to the fact that the raw material inventory prepared by the weaving enterprises themselves is not high. In the case of large sales promotions in polyester factories, weaving companies naturally take advantage of the cheap prices to “buy, buy, buy.”
At the same time, after this wave of promotions, the question that weaving companies are more concerned about is, will polyester yarn continue to fall? The motive of the polyester factory’s promotion is to clear inventory. Judging from the production and sales performance, the inventory clearing strategy is very successful. The polyester factory has regained the confidence to increase prices, so this motive will no longer exist in a short time. Judging from the recent strategies of polyester factories, such promotions will only last for one day, and the price of polyester yarn will rise again the next day. For polyester factories, the current situation is that the current polyester raw materials are on an upward trend. , this brings opportunities for the rise of polyester filament after the inventory is cleared. It is to tell the downstream clearly that the inventory has dropped again and the price has rebounded after today. If you don’t buy your raw material inventory, you will not be able to support the next wave of promotions.
The terminal demand that the market is most concerned about at present has also seen some obvious changes.
1. The cake ordered was cut too unevenly! The polarization of the downstream textile market is still serious
First of all, the polarization of the textile market in the recent stage is still serious. “Orders are okay. We have already received them in August. They are similar to the previous period. Our orders this year are generally okay. We have a lot of market orders. It is difficult to place big orders at the end of the month. We have basically placed all the orders we can.” Said Mr. Fu, who specializes in four-way elastic and functional fabrics. “The order situation has slightly decreased. There were more orders in March. Due to the epidemic in Southeast Asia, there are fewer external orders. There will not be a large number of orders placed at the end of the month. The traditional peak season has passed and the off-season will follow.” A main simulation operator Mr. Qiu of Silk said.
Nowadays, the market is obviously polarized. Some textile companies are able to receive a large number of orders, but there are also orders that are less than in the previous period. The main reason for the decrease in orders is that the foreign epidemic has not been fully controlled, and the epidemic in India and other places continues. It has been out of control for a few days, and the foreign trade market has been unable to operate normally. Not to mention that foreign trade orders have dropped significantly, and there have even been cases of orders being cancelled.
2. Confidence is gold! India’s single return effect brings positive signals to the market
Secondly, European and American textile and apparel demand plays an important role in my country’s foreign trade enterprises. At present, market participants are expecting international relations to clear up and see a retaliatory rebound in overseas demand before the peak foreign trade season arrives!
As the world’s largest cotton producer and the world’s largest jute producer, India’s yarn production capacity accounts for 22% of the world’s. Textile revenue has always been one of the main pillars of the Indian economy and one of India’s largest sources of foreign exchange earnings. The textile industry accounts for about 15% of India’s total export revenue. However, the emergency situation of the epidemic in India has caused a great impact on the textile industry. The income of textile enterprises has dropped sharply. The epidemic in India has lost control, which has caused a certain impact on domestic textile exports, but it will also cause some orders to flow to China. Affected by this, the shipment of pure cotton yarn in Nantong market has accelerated recently, and pure cotton yarn 40S is in short supply, with an increase of 300-500 yuan/ton.
Based on the return of overseas orders last year, demand for yarn, home textiles and other products is expected to partially return. It is expected that from May to June this year, domestic textile enterprises may usher in a wave of market conditions. Coupled with the stimulation of domestic demand during the 618 Festival, domestic textile enterprises may usher in a wave of market warming.
Therefore, in a short period of time, it will be difficult to see polyester factories promoting polyester yarns on such a large scale. Weaving companies that need to replenish their stocks can seize the opportunity. Of course, buy it or not. You should also consider your own business conditions and act within your capabilities. </p
