In recent days, there has been no news of price increases or sell-outs in textile people’s circle of friends. On the contrary, polyester yarn has begun to decline due to the plummeting crude oil price.
A month or two ago, textile raw materials were priced at the same price a day or even half a day, but now they have become quiet recently.
Worry when it goes up or down, so you have to think carefully when taking orders!
For textile companies, what they fear most is not price rises or falls, but price instability. If you buy raw materials at a high price and then the price drops when they are produced, it is like a punch in the stomach.
A textile enterprise board member said: “The market is so bad now, the warehouse is full of inventory, and the promotion of raw materials is uncertain, so we will not consider stocking up on raw materials during this period. It is better to buy according to demand. If the current artificial high price of raw materials suddenly disappears, then these raw materials will be lost in your hands, and you will not be able to tell the pain.”
“Nowadays, overseas prices I dare not take the order even if I put it in my hand, I can’t deliver the finished goods, and the customers are pressing me hard, so I still lose money even if I take the order.” said a textile boss who specializes in foreign trade.
It seems that the rise and fall of raw materials has brought a lot of troubles to cloth bosses. Especially some companies that make low-end fabrics and have high inventories have weak bargaining power. When raw materials rise, the price of gray fabrics does not dare to rise, but when raw materials fall, they frequently suffer from price cuts.
The current explosive orders may be due to overdraft of later orders!
“Our gray fabric business has been a little better recently. Basically, the quantity for the whole year is guaranteed, but there are not many trade orders, which can only last for one month at most. The quantity is low, and customers are hesitant to place orders,” said a trader.
Another trader is also worried: “I think the foreign trade market will not be very good in the future. The epidemic abroad is getting more and more serious, but there are many orders in the market. As a result, the order stocking operation for raw materials and gray fabrics is better than before. Market orders are being issued one after another. Some people think that the peak season is coming, but many of them are traders stocking up, not manufacturers directly placing orders. ”
Some traders believe that the current wave of orders is actually overdrafting the volume of subsequent orders. “The mutant strains Delta and Ramta have made the epidemic so severe now.” Seriously, the European and American markets are also recovering slowly. We are more worried that the orders during this period are actually overdrafting subsequent orders, which will be even more difficult during the off-season.” said a textile boss.
Limited by financial pressure and considering the risk of falling prices, some textile company owners do not have many raw materials in stock in their warehouses. The market is unpredictable, and they buy when it rises but are afraid of falling. If you buy when the price drops, you are afraid that it will not fall to the bottom, so you become less and less afraid to stock up.
Similarly to the wait-and-see attitude of weaving companies, traders and fabric merchants also suspended orders when gray fabrics rose to a high level.
From the perspective of the overall environment, it will take some time for the textile and apparel market to return to its pre-epidemic state. At the same time, repeated epidemics and mutated viruses are still hindering the market. A good “bomb”. Domestic sales and foreign trade markets have not fully recovered. It will take time to confirm whether the peak seasons of Gold, Nine and Silver can drive orders to continue to improve! </p
