Buy Fabric Fabric News I can’t calm down anymore! There is nothing we can do if we stop, reduce, and go all the way! Fortunately…

I can’t calm down anymore! There is nothing we can do if we stop, reduce, and go all the way! Fortunately…



We are about to enter the middle of the traditional peak season of Silver Fourth. Since some time ago, the market has been in a delicate state of resuming production, suspending pr…

We are about to enter the middle of the traditional peak season of Silver Fourth. Since some time ago, the market has been in a delicate state of resuming production, suspending production and resuming work. The most important thing is that the impact of the epidemic has interfered with the normal recovery of demand.

Upstream is not calm

In fact, after this period of time, we can all see that the current market has long been in a helpless state. To say it is a bit “miserable” is really not an exaggeration. Some time ago, Nantong, Tongxiang, Haining and other places implemented lockdowns, and many textile markets were suspended. Now, according to the latest announcement, Haining will resume work and production in an orderly manner starting this week. However, new events have emerged. Taicang has implemented a one-week static manage! These include two sets of devices that may require parking due to the epidemic!

A 250,000-ton polyester plant in Taicang is scheduled to be shut down for maintenance. The plant will mainly produce polyester filament.

Another 200,000-ton polyester device in Taicang is scheduled to be shut down for maintenance, and the device will produce polyester filament.

In addition, some companies in Jiangsu and Zhejiang have also been affected by the epidemic, and their logistics has been hindered. Demand has dropped again and again. Polyester companies have high inventory levels and growing pressure on losses. Therefore, some major polyester manufacturers have also begun to reduce production this week. Last week, the average polyester load dropped by 2.7% to 89.9%. Starting this week, some major polyester manufacturers have also begun to reduce production. If all production reductions are implemented and other devices fail to recover in time, the immediate polyester load may fall to around 85%.

Although the production reduction has been severe, it cannot suppress the continuous decline in polyester yarn prices. Since April, polyester filament DTY 150D has dropped by 200 yuan/ton, POY 150D has dropped by 250 yuan/ton, and FDY 150D has dropped by 130 yuan/ton. Except for DTY, which maintains its profits at a profitable level, both FDY and POY are in a state of continuous losses. The reason for this loss-making situation is mainly due to the disconnection of demand. In the past, during the peak season, the price of polyester yarn increased and there were occasional promotions. There were also a large number of users flocking to it because of the continuous flow of orders. However, under the current situation, if you follow blindly If costs rise, no one will buy it. The manufacturers also know it, but there is nothing they can do about it.

Downstream logistics is expected to improve

For the textile industry, it is an indisputable fact that this traditional peak season is not traditional at all. Most major textile provinces have taken turns to impose lockdowns, directly affecting most of the industry. Due to the huge impact on the downstream, demand has shrunk again and again, as if the forward button has been pressed.

Originally, under the Silver Fourth Movement, perhaps the market could be saved due to the impact of production cuts by major manufacturers, but it will take time for the epidemic to improve. Now the trend of production suspension has swept many important textile regions, and the textiles in various regions are actually closely connected. . From the perspective of the industrial chain, everything is inseparable from the word transportation.

Since the epidemic, many textile people have been affected by logistics and transportation. Because the epidemic has broken out like “flowering everywhere”, currently more than 800 high-speed exports in the Yangtze River Delta, North China, Northeast, Northwest and other provinces are under control. This directly affects the production, sales, etc. of textile enterprises.

According to monitoring data from Silkdu.com, the operating rate of looms dropped slightly last week and has dropped to 65%. A series of problems caused by logistics have made it difficult for companies to produce! It’s hard to sell! The inventory is still very high. Even the major polyester manufacturers are reducing production, let alone the struggling textile companies!

Being able to finally receive an order during this special peak season is like providing help in times of need. When logistics is tight, it is really overwhelming. Not only is it difficult for businesses, but it is also difficult for truck drivers. On the highway, they have to make a U-turn or wait and wait and wait. Failure to get off the highway means that either the goods cannot be delivered or the goods cannot be received, which is very worrying!

Fortunately, a new notice has been issued urgently, stating that it is necessary to make arrangements to ensure the smooth flow of freight logistics, and that the passage of trucks, drivers and passengers must not be arbitrarily restricted. This means that freight efficiency will be greatly improved, especially for key supplies. Although it may take some time to implement, this is nothing less than a good signal. Many textile bosses complained before that they could not send out or receive goods, and the delivery date was delayed again and again. After seeing this news, I believe it will be done soon. Restore smooth flow.

Nowadays, the epidemic situation is unpredictable and it is very uncomfortable for everyone.�In the face of manufacturers’ production cuts and maintenance, considering that demand has not yet recovered, textile companies still need to stock up reasonably.

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Author: clsrich

 
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