Stop the steam, stop the machine, stop collecting gray cloth! The textile printing and dyeing market suffered “three stops”, and polyester stocks went straight to a five-year high! The resurgence of the epidemic may bring an early end to this year’s market!
Recently, although the weather is getting colder and colder, the overall atmosphere of the textile market is relatively subtle. Many textile, printing and dyeing factories have issued holiday notices for the Spring Festival.
According to the holiday time of these dyeing factories, judging from last year’s situation, this year’s holiday time is significantly earlier than last year. It is understood that in previous years, the holidays were held 14 days before the Chinese New Year, but this year the holidays are mostly before January, about 30 days earlier, and a full 2 weeks earlier than last year. In addition to the time when the thermal power plant shuts down gas, more importantly, it is the contradiction between supply and demand caused by the epidemic.
As the market enters the off-season, even if work is suspended, the impact on surrounding areas will be minimal. However, the market after the New Year seems to be facing the situation of dyeing factory explosions under this situation. Since the end time of Shaoxing’s control is currently determined to be March 15 next year, this is already the end of the New Year and has entered the traditional During the “Golden Three” peak season, time waits for no one. Textile workers are bound to look for nearby printing and dyeing factories with similar prices and quality to work. As a printing and dyeing base with a production capacity accounting for one-third of the country’s production capacity, this number is divided into orders. Unimaginable.
However, after the Spring Festival holiday, workers have returned to their hometowns to celebrate the New Year. Printing and dyeing factories will encounter a situation where there are jobs to do but a shortage of workers, and the loss of workers has begun from now on. Due to the frequent outbreaks of epidemics, many places are advocating on-site work. During the Chinese New Year, workers who were far away from home felt homesick and feared that they would not be able to return to their hometowns in the future, so they postponed their return home. How will printing and dyeing factories that lack workers and production capacity ensure their delivery dates? Generally speaking, dyeing factories will stop entering warehouses and complete the orders in hand first, so as to relieve the orders in their hands. Due to the shrinkage of production orders, printing and dyeing factories will control production next. Except for a very small number of dyeing factories that have experienced warehouse explosions, some dyeing factories are in a state of not having enough to eat.
On the other hand, it is understood that compared with the same period of the lunar calendar in 2020, the average operating rate of texturing and weaving in Jiangsu and Zhejiang has dropped by 13% to 25% year-on-year. After New Year’s Day, most weaving companies will suspend production and take holidays. A small number of weaving companies with orders will go on holiday in mid-January.
Filament stocks are at the highest level in the past five years
Polyester load may decline further
In early December, major polyester manufacturers jointly reduced production, and the polyester load quickly dropped to 85% and then remained stable. Due to the epidemic control on logistics, the raw material distribution and cargo turnover efficiency of polyester factories in Hangzhou, Shaoxing, and Ningbo has declined, and downstream terminal demand has not improved. Some companies have reduced their workloads early and even started the Spring Festival holiday. In the week ended December 17, the polyester load dropped from 85.3% to 83.8%.
From the perspective of inventory, polyester filament inventory is at a high level in the past five years. In addition, downstream companies are going on holiday ahead of schedule, and polyester filament will face greater sales and inventory pressure in the future. Filament profits are not good, and polyester filament companies are more likely to see negative returns in the future. The overall inventory of bottle flakes is increasing slowly, and the operating rate is more likely to remain stable. Although the inventory pressure of short fiber is the smallest, due to the sluggish demand for textile terminals, it will also face accumulated inventory pressure in the future, and there is the possibility of reducing the burden. According to the current polyester forecast maintenance device, the polyester load may further decrease.
Counterattack against the epidemic
This year’s textile market may end early
The counterattack of the epidemic seems to bring an early end to this year’s textile market. After market research, some companies have said that as the end of the year approaches, weaving and clothing companies are troubled by multiple factors such as insufficient orders, tight funds, and the spread of the new coronavirus epidemic. Raw materials and fabrics are basically purchased as needed; on the other hand, traders in the light textile markets in Guangdong, Jiangsu and Zhejiang and other places are less willing to stock up before the Spring Festival, and most of them are currently operating with withdrawn funds. In addition, the comprehensive upgrade of epidemic prevention and control in various regions has not only affected the production and order-taking of labor-intensive enterprises such as weaving, printing and dyeing, and clothing, but also affected the transportation of raw materials, gray cloth, and fabrics.
As the market declines at the end of the year, the textile market may start a holiday wave next month! For textile workers, it is not easy to receive orders at present. In order to prevent the problems of shortage of workers and long delivery time from coming back later, downstream customers place orders as soon as possible to avoid affecting the normal delivery cycle.
</p
