Recently, when the editor was conducting market research, I found that many textile bosses were very busy, with constant phone calls and WeChat messages, busy quoting, producing, and shipping. Of course, this is not a universal phenomenon, but there are indeed signs of improvement in the market recently.
At present, some fabric products are indeed selling well on the market, such as T400, four-way stretch, SPH, pongee, nylon, imitation silk, etc. It can be seen from these hot-selling varieties that most of the fabrics are autumn and winter clothing fabrics, and only imitation silk is a summer clothing fabric. This means that in addition to seasonal clothing being produced, autumn and winter clothing in the second half of the year has also begun.
According to Boss Bu, the sales volume of autumn and winter fabrics has indeed been quite large recently, but a large part of it is for stocking and is not used for substantive order production. Based on experience in previous years, from May to July, almost everyone is preparing for autumn and winter clothing in the second half of the year or next year, so it is also a regular stocking season.
Raw materials are rising and gray fabrics are falling, so it’s suitable for stocking up.
Recently, driven by international crude oil, chemical fiber raw materials have shown a continuous upward trend and have returned to a high level. The price of gray fabrics has not followed the rise at present, and has even declined due to the sluggish market in April. In addition, the market has improved slightly recently. Manufacturers with high inventories are eager to ship goods. The price of gray fabrics has become more loose, and large quantities can be negotiated. According to the cloth boss, if the price of gray cloth is paid in cash, there is basically room for negotiation of 0.1-0.2 yuan/meter. Therefore, when raw materials continue to rise, the price of gray fabrics drops, which is a good time to stock up.
On the other hand, the supply situation of international crude oil is still tight and will be difficult to alleviate in the short term. Therefore, oil prices still have room to rise or may fluctuate and remain high. Due to the prediction of rising oil prices, Boss Bu believes that polyester filament raw materials will not see a big drop in the short term and may continue to rise. Considering that the price of gray fabrics will rise due to rising raw materials later, traders will purchase some gray fabrics at low prices for order production in the second half of the year.
There is a risk of failure to stock up later
Although many bosses are stocking up on goods, in fact they have no idea and are even a little worried. Preparing goods is always risky. First, they are worried about a sudden price drop in gray fabrics. Second, they are worried that there will be no orders and the goods they prepare will rot in the warehouse. According to the current situation, such risks do exist.
Entering June, textile people will gradually feel that the off-season is deepening, and the entire industry’s upstream and downstream industry chains will be in a sluggish state of receiving orders. In this case, traders’ orders will inevitably decrease, and they may not be able to receive orders that match the fabrics in stock. . In the short term, it will be difficult to use the stocked fabrics for order production, and it will occupy funds, and there will also be certain pressure on funds.
In addition, due to the off-season, the inventory of weaving enterprises is also at risk of accumulation. According to previous experience, the phenomenon of selling goods at low prices is most popular in July and August. Then the price of the previous stock will not be good, and there will be no advantage. In terms of raw materials, the upstream will also be overstocked due to the reduction of downstream orders. It is not ruled out that polyester factories will promote sales again and prices will return to low levels. Then in the off-season, the decline in gray fabrics is also imperative.
At present, the domestic epidemic has achieved a phased victory, the domestic sales market will gradually recover, orders are also beginning to be released, and the hot sales will continue in the short term, perhaps until early or even mid-June. Naturally, this is a good opportunity to clear inventory. Weaving companies should seize this opportunity.
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