With the outbreak of the Russia-Ukraine war some time ago, the price of crude oil soared. The increase in cost caused the price of raw materials to rise accordingly. Logically, the price of fabrics should also rise accordingly. However, due to poor market conditions and customers repeatedly lowering prices, fabric prices have been difficult to maintain. As the price of polyester filament rose, the textile boss moved forward under pressure and continued to take orders at the risk of losing money. Fortunately, the price of polyester filament stabilized in the later period and did not continue to rise. The textile boss was able to breathe…
The price of raw materials has dropped recently. When the textile bosses were still rejoicing that they could finally make a small profit from it, the customer said: “The raw materials have fallen, and the price of gray fabrics will of course also drop!” This is another “slap in the face” for the textile bosses!
“Recently, the price of raw materials has dropped by 500 yuan. I originally thought that the previous order with guaranteed capital would now make a profit of one or two cents, but I didn’t expect that our customer would be lucky, and the price of direct gray fabric would also be reduced for him! I didn’t agree at the time!” A textile boss in Shengze area said.
At present, the price of raw materials has dropped by nearly 1,000 yuan/ton compared with the same period last month. Although the drop is relatively large, the price of fabrics has been at a low level in the early stage, so textile bosses cannot make much profit.
The peak season is not busy, but the prices are low!
It will be mid-April soon, and the epidemic has not yet reached a turning point. The market situation is also the same. There is not a wave of orders after the Tomb-Sweeping Festival as previously predicted. It seems that there is still half a month left for gold, silver and silver. The time is coming to an end, and textile bosses are starting to get anxious. Are you still expecting orders to be placed in the off-season when things are not going well?
Obviously, according to the current market conditions, the textile boss can only compromise on the low price, “I have not agreed to him now, but I will definitely agree to it later. Now that the market has orders, it is good, but you are still picky?” If you can make deductions from other aspects, you should try your best to protect your capital.”
In today’s market, no matter how low the price is, customers can quote it, and the textile bosses who want to keep the factory running normally can only accept it with tears. It is precisely because of long-term compromise that the price of fabrics keeps getting lower and lower. We must know that customers who are accustomed to low prices can still accept the increase in fabric prices. When the market is not good, textile bosses do not have the capital to increase prices, so they can only suffer this “dumb loss”.
Is it possible that we just have to accept it?
The market situation is unsatisfactory, the demand is difficult to increase, and the low price of fabrics has become synonymous with this peak season. If there is no way to defeat it, we can only accept it silently?
In fact, it is not the case. Oversupply has been the main problem encountered in recent years. Although the demand has decreased, it does not necessarily mean that the production capacity of textile bosses has been reduced. This fundamentally solves the problem. The volume of the same variety in the market has become smaller, and the demand has increased. Under the same premise, naturally everyone can receive orders.
But another problem we are encountering now is that there is a lack of hot-selling products in the market. Most of the hot-selling products are niche fabrics, which are not produced by all textile owners. As a result, everyone is confused about what should be produced and what should be stocked.
According to the current market situation, concentrated orders should not be placed in a short time. Due to the reduction in downstream demand, polyester prices will be difficult to rebound in a short period of time. Promotions may occur in the near future. When inventory gradually accumulates, polyester yarn prices will increase. Ester manufacturers will also start shutting down for maintenance and load reduction.
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