It is said that 2017 was an extraordinary year for textile people, but 2018 is also an extraordinary year! In the first half of the year, the fabric market experienced price increases and shortages, and was “abnormally hot” even in the off-season. In the second half of the year, even the peak season was tepid, and the entire market was relatively flat. In this ups and downs year, in fact, the entire textile industry is experiencing pain and impact.
Grey fabric market: The market is in a state of ice and fire
This year In the first half of the year, polyester taffeta, pongee, nylon, imitation memory and other gray fabrics were all out of stock. Although raw materials increased and gray fabric manufacturers joined together to increase prices, they still could not stop the huge demand for these gray fabrics. In the second half of the year, no one cared about the “hot cakes” that had been robbed, and the goods were shipped normally, and the inventory in the warehouse gradually accumulated. Gray fabric manufacturers are complaining and have no confidence in the market.
Editor’s comment:
Due to environmental protection rectification activities, a large number of weaving companies have moved their factories to other countries. Starting from the beginning of this year, emerging water-jet looms have entered production one after another, and conventional products may have a greater impact. A large number of water-jet looms were put into production in the first half of this year, and there was overcapacity in the second half of the year. Moreover, it is still difficult for peripheral machines to produce high-quality products when they are first put into production. Therefore, these newly put into production water-jet looms will basically produce conventional products at the beginning, and the quality produced will be relatively high. Generally speaking, it is probably the quality of “market goods” on the market. In the Shengze area, there are already very few of these conventional products, so conventional products have been greatly impacted.
Fabric market: Small profits but quick turnover are a dream
In the first half of this year, the price of raw materials has increased, and the market price of gray fabrics can also be described as a mad cow. The price of polyester taffeta leads the entire gray fabric market every day. After that, pongee and other fabrics have risen. Although the price of gray fabrics has increased, orders from garment factories are still being placed. Although fabric merchants’ profits have been compressed, they still accept orders with a smile on their faces. In the second half of the year, raw materials fell, but gray fabrics were still at high prices. Orders from garment factories were also issued sporadically. Not only were fabric merchants unable to receive orders, but they were also unable to make any money with orders.
Editor’s comment:
In the past year or two, the prices of upstream raw materials, gray fabrics, and dyeing fees have increased. Everything is rising, but the downstream clothing and home textiles are not strong enough to accept it. , which puts fabric traders in a “dilemma” this year, and profits are being compressed layer by layer, leaving little left. As for garment factories, they were also affected by the economic downturn in the overall market and the Sino-US trade war, which resulted in a corresponding reduction in the orders they placed to fabric manufacturers, which led to the weak market conditions in the second half of the year.
Printing and dyeing market: dyeing costs are rising
Although the environmental protection reshuffle in the printing and dyeing market has been carried out in 2017, 2018 is considered a relatively quiet year. Printing and dyeing companies are limited to a few production shutdowns, and each time does not last long. Therefore, in terms of environmental protection, it has little impact on printing and dyeing companies. However, companies in the dye industry have suffered a greater impact from the environmental reshuffle. Dyestuff prices have been adjusted no less than several times during the year, causing the dyeing fees of printing and dyeing companies to rise. Downstream fabric merchants are crying.
Editor’s comment:
The dye industry belongs to the chemical industry and is the focus of environmental protection rectification. Therefore, many dye companies have been in a state of long-term shutdown this year, resulting in a decline in the output of the entire industry. , and companies spend more on environmental protection, so dye prices continue to rise. However, after such environmental rectification, we have also seen the transformation of the entire industry. As the saying goes, scraping bones and healing wounds, eliminating backward production capacity, while environmental rectification is also a rebirth of the industry.
The textile industry in 2018 can be said to be a transition period. In the process of industry rectification, enterprises process of transformation. For traditional textile companies, the market after scraping the bones is painful! Next year and even in the future, companies may be forging ahead on the road to destocking!
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