According to feedback from weaving enterprises and light textile market traders in Jiangsu, Zhejiang, Guangdong and other places, in the past week, although cotton yarn quotations in Henan, Shandong and other places have been stable and weak, the room for profit negotiation on actual orders has increased significantly compared with October. , some manufacturers even take the initiative to offer a discount of 300-500 yuan/ton to facilitate transactions. Even the quotations for high-count general and combed yarns of 50S and above are now loose.
On the other hand, major polyester manufacturers finally couldn’t hold back anymore and vigorously promoted prices of 200-600 yuan/ton. As of November 15, the prices of polyester filament products were compared with the highest value last month and this year. Polyester filament FDY150D fell by 1,250 yuan/ton to 7,950 yuan/ton, POY150D fell by 1,350 yuan/ton to 7,750 yuan/ton, and DTY150D fell by 1,350 yuan/ton to 7,750 yuan/ton. 9450 yuan/ton.
The reason is that orders have been difficult to pick up this year due to high shipping costs and weak domestic demand. With the sharp drop in coal prices, the price of polyester raw materials has dropped sharply. Under the mentality of “buying up, not buying down”, terminals are less enthusiastic about purchasing raw materials. Polyester and yarn are once again facing a state of accumulated inventory and compressed profits.
From an industrial perspective, after the impact of power rationing gradually subsided, the market began to gradually pay attention to the recovery of the demand side.
Textile enterprises in Jiangsu, Guangdong and Hubei “speak with one voice”:
Costs such as electricity bills squeeze product profits, and no one wants the product!
However, judging from the recent feedback from various clusters, product price transmission is blocked and orders are lower than expected, which are the resonant factors of the market downturn.
1. Jiangsu gray cloth: downstream customers are waiting to see the profit of electricity extrusion products
Enterprises are affected by The impact of power cuts has gradually diminished, and construction has gradually returned to normal. The current operation rate is above 90%. Affected by the rising prices of upstream raw materials, yarn quotations are on the high side. Some downstream home textile and apparel customers are holding back on their orders. The actual transaction volume of gray fabrics is small, and orders are currently on the machine for about half a month. In some areas, electricity prices have increased slightly recently, and product profits have declined. It is expected that electricity consumption will gradually normalize in the future, and the cost of electricity may continue to increase. It remains to be seen whether downstream customers will bear the pressure of price increases.
2. Guangdong denim: dye costs surge, market purchases and sales are cautious
Recently, the price of denim yarn has been stable but has declined. The price of OEC 10-inch pure cotton yarn is 17,500 yuan/ton. Indigo dye has risen sharply due to the “dual control” and the price increase of raw materials. The price has reached a record high, reaching 74,000 yuan/ton. . The operating rate of enterprises has reached more than 95%, the order signing cycle has increased, product price transmission is blocked, profits are low, and market purchases and sales are cautious.
3. Lanxi gray fabric: Considering the factor of repayment, it is difficult to improve in the past month
Cotton yarn is at a stable high with some decline, and the fabric market is poor. Because the product price is difficult for downstream customers to accept, actual orders are few and far between. The impact of power shortages has been alleviated recently. Due to slow shipments, the inventory of weaving companies is high. It takes up a lot of funds. As the end of the year is approaching, companies are operating more cautiously due to factors such as payment collection. Most of the market outlook is not optimistic, and it is difficult to see improvement in the past month.
4. Jiangsu yarn-dyed fabrics: rising electricity prices and rising costs make companies cautious in stocking up
The market has been relatively stable recently, the opening rate has rebounded, order inquiries have increased slightly, and the overall order volume is lower than expected. Supported by the cost of raw materials, yarn prices continue to remain high. Enterprises are cautious in stocking up and purchasing on demand. The price of yarn-dyed fabrics is basically stable. The power restriction policy has been further relaxed, electricity prices have increased, and costs have increased. Regarding the market outlook, companies are mostly cautious and are expected to maintain smooth operations.
5. Hubei pure cotton cloth: mostly small batches, short-term orders, companies can buy as they use
The current price of raw materials is more stable than in the previous period, but still at a high level, and companies can buy as they use. Because procurement costs remain high, there are fewer downstream orders, mostly small batches and short-term orders. It is expected that cotton prices will remain strong in the later period, but the resistance of cotton prices to the downstream is relatively large. The profits of textile companies are low, and downstream companies have a wait-and-see attitude and are cautious in placing orders.
Industry analysts believe that since late October, power cuts in Shandong, Henan, Jiangsu and other places have been fully relaxed or even canceled, and production capacity has been rapidly restored and released. Some small and medium-sized enterprises have The inventory accumulation rate continues to rise, and working capital is occupied. In addition, as the end of the year approaches, textile companies have greater cash flow needs and need to pay for spare parts, water and electricity bills, wages, bonuses, loans and interest. Some companies have resorted to methods such as selling inventory and quickly realizing cash to maintain production. A medium-sized textile company in Xiangyang, Hubei Province said that since August, orders for medium and low-end textile clothing have accelerated to major textile countries in Southeast Asia and developed countries such as Europe and the United States. Christmas and Easter orders have ended, and the difficulty of processing orders for small and medium-sized textile companies has continued to rise.
As expectations for a decline increase, raw material manufacturers begin to offer soft promotions
The previous power restriction policy gave the market a chance to breathe. A large amount of inventory of weaving manufacturers was cleared, and the price of gray fabrics also increased along with the price of polyester yarn. However, the price transmission was slow, even if the upstream had already risen. It’s ridiculous, and it can only rise a little when it is passed to the downstream. Now that the policy is liberalized, the production capacity of most manufacturers has gradually recovered. However, because holiday orders such as “Double Eleven” have been consumed during the power limit period, some manufacturers have limited order ratios. Even less electricity. Add�There have been few orders recently, and production capacity is recovering. Sales of some gray fabrics are not good, and the inventories of weaving companies have begun to show an upward trend.
Due to the confused mentality in the later period and the rapid decline of upstream raw materials, the market’s expectations for the decline of textile raw materials are also increasing. Polyester and yarn manufacturers began to relent in the face of sluggish polyester production and sales and declining costs, and continued the previous weekly sales model. </p
