At the end of October, news spread like wildfire that the rolling blackouts and power rationing would be lifted in Jiangsu. It is rumored that further notices from the government will be made after the 27th of this month. Currently, market participants mostly interpret that there will be no more power rationing in Jiangsu, and the current situation in Taicang, Jiangsu Texturing starts significantly improved.
However, just when everyone felt that the power restriction policy had been relaxed, new power restriction control came again! It is understood that the Zhejiang region once again received power restriction control measures on the 29th. Among them, the Jiaxing region of Zhejiang Province started to launch the D-level plan for orderly electricity consumption from October 28. Among them, the texturing enterprises in the Tongxiang region started from October 28 to 11 All operations will be suspended on October 4th. Polyester enterprises will operate with reduced load from 17:00 every day to 9:00 the next day from October 28th to November 18th. Guali, Suoqian, Heshang and other towns in Xiaoshan, Hangzhou will operate at 7:00 pm on October 28th. It has been implemented that Category B enterprises are divided into three groups, each of which will be closed for 2 days a week, and Category A enterprises are divided into 2 groups, each of which will be closed for 1 day a week, for a period of 20 days.
Due to limited production capacity, the term “tight supply” has been ringing in the ears of textile workers since September. The prices of some textile raw materials have increased due to production restrictions, and supply has exceeded demand, with prices hitting record highs. As the power restriction policy was relaxed in the previous stage, texturing, weaving, printing and dyeing operations gradually resumed, and supply increased one after another. The tight supply of spot goods in the market was alleviated, and the prices of raw materials, gray fabrics, and printing and dyeing also eased. Now the new The control measures may once again aggravate the market’s supply shortage expectations, and may further cause the slowing market prices to fluctuate again.
However, it may be another bolt from the blue for textile companies! The combination of production restrictions and market downturn has a greater impact on textile companies. For example, during the early production limit, a fabric manufacturer in Keqiao reported that some customers would order around 3,000 meters in previous years, but now they are worried about whether we can ship the goods in time and begin to place orders separately. The order quantity has been reduced to about 500 meters. The relevant person in charge of a fabric company in Shengze also said frankly: “Now is the peak production season, and lower operating rates will inevitably bring subsequent production pressure. However, if we rush to ship goods later, it will inevitably cause order delivery conflicts and warehouse explosions. Wait for the situation. In this regard, we can only resort to tactics.”
There is no doubt that the price of textile raw materials has risen and fallen sharply recently, and the upstream and downstream enterprises in the industrial chain have mixed joys and sorrows. In particular, industries in the middle reaches of the industry such as fabric printing and dyeing are facing greater crises and risks. This is evident from the number of companies in these industries that have been canceled, bankrupt, closed, and integrated in the past year. </p
