In November, although the power shortage situation has improved, the textile market seems to be in a more tangled state than in October.
Recently, the prices of textile commodities have fluctuated. Fluctuations in raw material prices are being transmitted downwards. Recently, polyester factories have launched two sales promotions in succession. In just 4 days, the quotations of some products of the polyester factory have been significantly reduced by 500 yuan/ton. International oil prices fell significantly in the early stage, further lowering the quotations of various products in the polyester industry chain.
Raw materials plummeted
Downstream bargaining The scale is getting bigger and bigger
Although prices began to loosen in November and polyester factories started big sales, the overall whole year is still a straight upward curve; “Although now There has been a correction in raw material prices, but they are still at a high level.” The person in charge of a fabric company in Shaoxing, Zhejiang, who did not want to be named, said frankly that due to the impact of the epidemic in the first half of the year and power rationing in the second half, the prices of some raw materials have increased exponentially, especially In terms of foreign trade business, combined with rising logistics costs, fabric prices must be increased by more than 20% to ensure no losses. “However, many customers find it difficult to accept this. Now the company’s product prices have also been raised, but it is far from enough to offset the increase in production costs. We have given up on some orders.” The person in charge said bluntly.
The company’s current situation is not unique. Many fabric companies have reported that the current business is not easy and the production costs are too high. Downstream, the price of raw materials continues to fall and the scale of bargaining is getting larger and larger, resulting in less and less profits for fabric companies. In addition, in the later period, the cost of raw materials and dyeing is increasing. The price is difficult to grasp, and the production cycle of the fabric is also difficult to grasp. As the inventory of raw materials gradually decreases, the order delivery problem of fabric companies is becoming increasingly serious.
The dyeing fee increase notice is here again
I dare not take the order I negotiated earlier
While the price of fiber raw materials has been at a high level throughout the year, many fabric factories have recently received orders from printing and dyeing companies. A price increase notice from the company.
Since the implementation of the large-scale power and production restriction policy in mid-to-late September, printing and dyeing factories across the country have successively issued price increase notices, and some manufacturers have even It has been sent out many times and the price is constantly being raised. This has led to a situation where downstream fabric companies dare not accept orders. A fabric trader complained: “In October, because the price of nylon gray fabric was ridiculously high and I had to pay for it in cash, I refused to take the order. In November, because the dyeing fee continued to increase, the price we had negotiated earlier Orders, production is losing money now, and I won’t dare to take orders in the future. The second half of the year will be really difficult!”
The pressure on ocean freight
still makes it difficult for companies to bear the burden
Production and processing are under pressure from rising raw materials. In terms of logistics, pressure from shipping freight has also made it difficult for companies to bear the burden.
Although the epidemic is still spreading around the world, the global supply chain has been impacted, and port operating efficiency has dropped significantly, the container transportation market demand has recovered well. According to Clarkson’s forecast, global container shipping demand will increase by 6.1% year-on-year in 2021. With the active container transportation market, international freight rates have increased significantly. The Drewry World Container Index shows that the spot price of a 40-foot container from Shanghai to Los Angeles rose to US$10,503 at the end of July, a year-on-year surge of 258%, increasing cost pressure on textile foreign trade companies and squeezing profits.
The person in charge of a clothing company in Nantong, Jiangsu Province told reporters that shipping prices rose sharply in the first half of this year, with the price of a container rising from more than 2,000 US dollars to 20,000 US dollars. It has declined since September, but still reaches US$16,000 to US$17,000. “Generally, you have to order a cabinet 2 months in advance, otherwise you may not be able to order it. The price of the cabinet is not based on the price at the time of booking, but the market price one week before shipment.”
Even if a container is ordered, it is troublesome to be unable to unload the goods at the port. A person in charge of a foreign trade company pointed out that if a container is stranded at the port, it will be fined US$100 on the first day it is overdue, US$200 on the second day, US$300 on the third day, and so on. The superimposed fines will make a person Containers stranded in ports end up paying a very high numerical fine.
After the “Golden Nine and Silver Ten” years, the situation of power cuts in some areas has eased compared with before, and the “one size fits all” phenomenon has been changed. However, for fabric companies, the subsequent impact caused by dual energy consumption control still brings considerable challenges to the company. </p
