I still remember that during the G20 meeting last year, when Putin shook hands with the Saudi Crown Prince, international crude oil soared by 6%. The handshake between the energy ministers of Russia and Saudi Arabia once again caused uproar in the crude oil market, with crude oil rising 2% in a single day. With crude oil rising sharply, the downstream market is also booming. PTA futures rose 50 points on the 15th, and the ethylene glycol electronic trading closed at the daily limit. On the 16th, PTA futures continued to rise steadily, rising by nearly 50 points in early trading; ethylene glycol once again hit the daily limit in early trading, rising by 230 yuan/ton.
The raw material market is booming, and the polyester filament market is taking advantage of the momentum. On the 15th, the price of polyester yarn was stable, and production and sales were off the charts; on the 16th, the prices of some polyester yarn manufacturers in Jiangsu and Zhejiang were pushed up. Among them, some FDY in Xiaoshan area increased by 100 yuan, and POY in Tongxiang area increased by 50-150 yuan.
Driven by crude oil, the current round of raw material market rebound has strong momentum. When the market’s attention is all focused on the raw material market, what is the real situation of the fabric market as the terminal? Can the demand side provide boost for this round of market rise? Let’s go into the fabric market and listen to the most authentic voice of the cloth boss.
Jintong Textile – June off-season is not expected to be delayed
According to previous years, starting from late May, the market will gradually enter the off-season. Mr. Zhao of Jintong Textile said that the market situation this year will be the same as expected. From the current point of view, the market demand for polyester crepe de chine, flower crepe, tangled hemp, high twist and high elastic series is relatively smooth, but the number of orders has decreased compared with the previous month. Although raw materials have fallen a lot in the early stage, the prices of raw materials are still high compared to the first half of last year. Many customers who placed orders last year cannot negotiate the price of their orders this year. Because the price of raw materials has increased a lot compared to last year, the price of gray fabric factories has increased, but the price increase at customers has not been able to increase, and the profit margin has been significantly compressed.
Sicai Textile—Orders for cold-proof fabrics remain stable
This year, the export demand for mid-to-high-end fabrics is relatively good. After the fabrics are processed into garments domestically, they are then exported to European and American markets.
According to Manager Fan of Silicai Textile, they are still mainly producing down and cold-proof fabrics for this autumn and winter, mainly 20D low elasticity, nylon wrinkle, imitation memory and other fabrics. Judging from the current situation, whether it is weaving or printing and dyeing, the production situation of manufacturers is still relatively busy, and the weaving factories are kept at full capacity.
Cultural and Educational Textiles – Demand for Oxford cloth fabrics remains smooth
Culture and Education Textile is a manufacturer that mainly produces Oxford cloth fabrics. Currently, the factory mainly produces sunshade cloth and directly exports the fabrics to the Middle East. Manager Zhu from Culture and Education told the author that the factory currently takes orders for about 2 months, and the recent export volume has not changed much compared with the previous period, at 2-3 containers/month. When it comes to raw materials, Manager Zhu said that the factory usually stocks raw materials in 7-10 days. Recently, raw materials have fallen more than they have risen, so they dare not stock more.
Xinchao Textile – Knitted suede is still mainly medium-thick fabrics
At present, the domestic order market is mainly dominated by large quantities of autumn and winter fabrics in the second half of the year, and the products are mostly medium-thick types. It can be said that the production in the factory is quite busy at present, and the delivery time of the dyeing factory is also scheduled to be about 20 days. According to director Xinchaozhang, the factory is quite busy during this period and raw materials are used very quickly. However, as raw materials are falling in recent times, we need to stock up on appropriate quantities, usually 50 tons. In the past, when raw materials were rising and orders were high, we would also stock up on 200 tons. At present, there are no big fluctuations in raw materials, so I just stock up on prices.
Detian Textile—Shirt fabric exports remain optimistic
Detian Textile mainly produces shirt fabrics and yarn-dyed fabrics, which are mainly exported to the Mexican market. According to Manager Zhang of Detian, there is a huge demand for shirt cloth in Mexico, and all shipments are shipped by container. Currently, early orders are still being produced, and the factory remains fully operational. When talking about the stocking of raw materials, Manager Zhang said frankly that the prices of raw materials are also unstable now, so it is healthier to stock up on appropriate amounts and eat less and more meals.
At present, the overall fabric market in Shengze market is still relatively stable, and the changes in other areas of Jiangsu and Zhejiang are also great. According to the survey and monitoring of China Silk City Network, the recent weaving start-up rate in Jiangsu and Zhejiang is around 78.5%, and the overall change is limited.
Shengze Market: Recently, the fabric market has been relatively stable, with large batches and small batches being the main products, and product types are mainly concentrated in light and thin fabrics. The current water spray and jet operating rate in Shengze area is over 80%. Many manufacturers have production orders on hand, but the number of orders received has decreased compared with April. In terms of inventory, due to the low social inventory this year compared with the same period last year, currently The market inventory pressure is not obvious and is around 36 days. Raw material prices have stopped falling and rebounded, slightly boosting the fabric market. It is expected that the fabric market will remain stable in the short term.
Shaoxing Market: Since May, the start-up of Shaoxing circular knitting machines has declined slightly and currently remains at 60-70%. This is mainly due to the obvious decline in orders for circular knitting machines. The original businessGood manufacturers will receive fewer orders in the later period and are worried about the market outlook. Other manufacturers with poor business will have fewer orders in the later period and will gradually experience more downtime.
Changshu Market: The Changshu market is dominated by warp knitted fabrics, and the recent start-up of the weaving market is around 50-60%. At present, the warp knitted gray fabric in Changshu is more than 15 days old. Most weaving manufacturers are under certain financial pressure. At present, most manufacturers are still operating normally, while some manufacturers with poor business have chosen to shut down and reduce production.
Changxing area: At present, the market for sanded fabrics in Changxing area is relatively light, with the starting price around 80%. At present, the market is still not optimistic about the market outlook, and the market mentality is relatively cautious. Fabric prices are currently relatively stable. However, as manufacturers’ inventories increase, it cannot be ruled out that some manufacturers will reduce their burdens and production in the later period.
Although the overall market performance of the fabric market in Jiangsu and Zhejiang is currently stable, with the decrease in orders, the market mentality is also undergoing subtle changes. The traditional off-season is approaching, and the fabric market has made certain preparations. Now that crude oil leads the polyester market, it is taking off again. Will the downstream market take over? How far can this market go? Many fabric bosses are smiling. Let me finish by borrowing a sentence from the cloth boss: It is safe to make and sell now. The raw material market has changed too much. We are not speculating on raw materials. We just focus on making cloth.
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