“The price of gray fabrics is difficult to deal with now. If we don’t increase the price, we really can’t continue to make it. The prices of four-sided elastic, T400 broken card, and T400 small Oxford will slowly increase. The losses will be too much, and the factories will no longer be willing to produce them. !”
The editor wrote an article about the price increase of gray fabrics the day before yesterday. Today I will talk about the specific situation of gray fabric prices. Today’s gray fabric market is still a bit “chaotic” as in the past, with uneven prices and a big gap between the lowest and the highest.
Recently, my friend Xiao Wang, who is a textile maker, revealed that the current prices of gray fabrics on the market have either increased or decreased. Some have gone up by 5 cents, and some have gone up by 1 cent. Some fell by 5 points, and some fell by 1 cent. Different gray fabrics, different manufacturers, the prices are really too much!
The editor also asked Xiao Wang which types of gray fabrics have fallen in price, and which types of gray fabrics have increased in price. Xiao Wang said that most of the gray fabrics of elastic fabrics have increased in price, and those that have fallen in price are naturally those varieties with large stocks and difficult to sell.
01 Cost prevention, no longer doing loss-making business
According to the editor’s in-depth understanding, the currently popular stretch fabrics on the market are mainly four-way stretch, T400, and high-elastic fabrics. Although this type of gray fabric has a large sales volume, the greater the quantity, the greater the price discount. Let’s take the 75D T400 broken card as an example. The price in January this year was 3.2 yuan/meter, and then it started to drop in price, falling to 2.95 yuan/meter.
The current price of polyester raw materials is more than 1,000 yuan/ton higher than in January. According to previous cost calculations, for every 1,000 yuan/ton increase in polyester price, the price of gray fabrics from weaving manufacturers will increase by 0.2 yuan/meter accordingly. But now that the price of polyester yarn has increased by 1,000 yuan/ton, the price of gray fabric has dropped. It can be seen that most manufacturers are selling at a loss. However, manufacturers have limited strength and cannot continue to do business at a loss. In order to survive, they have no choice but to increase prices.
With the easing of the domestic epidemic situation and the unblocking of Shanghai, the domestic market is gradually recovering, and there is a rebound in consumption. The recent stretch fabrics have been selling well. Overseas, the epidemic situation in Asia has also been alleviated, and during the peak summer travel period in the United States, the foreign trade market has also begun to gain momentum, and orders for autumn and winter fabrics have increased. These two factors have resulted in smooth sales of elastic fabrics and good demand. In such a busy atmosphere, what reason is there not to increase prices?
02If the price of gray fabrics does not rise again, production will be discontinued to protect the price.
But for the entire gray fabric market, price increases are not easy! When prices rise, naturally some people will not rise, and even more will drop prices. The average market price will be pulled down, and manufacturers who want to raise prices will not be able to do so. If there are weaving manufacturers with a lot of inventory and unable to raise prices, they may stop production in order to reduce losses. As early as the end of May, many weaving manufacturers have issued calls for price increases. If the price cannot be increased, they will stop production and stop production to protect prices!
When they hear the words “stop production and maintain prices”, many people may not take it seriously. The inventory of gray fabrics is so high, so it doesn’t matter if it is stopped for a few days. In fact, this is not the case. Once manufacturers jointly stop production, and this type of gray fabric is in high demand for the next six months, the inventory will be sold out. If some traders join forces with manufacturers to clear out the inventory, it will be difficult to get more goods at that time, and they have the final say on the price.
Before and after the Dragon Boat Festival, some weaving companies took action to reduce their load. According to data monitoring from Silkdu.com, the current operating rate of weaving enterprises in Shengze is 66%, down 4% from the beginning of May. The operating rate of looms in the entire Jiangsu and Zhejiang regions was only 47.4%, down 2.3% from the beginning of May. Today’s weaving load has been at a low level for a long time and has begun to trend downward again. In July, when the market is at its weakest, it may be even lower.
In addition, according to the current price trend of upstream raw materials, the second half of the year is very likely to be high, and gray fabric prices will rise sooner or later. Take the 75D T400 broken card above as an example. Currently, some manufacturers have increased the price to 3.1 yuan/meter. In just a few days, it has increased by 0.15 yuan/meter. It can be seen that there is still room for growth in this kind of gray fabrics with high demand.
Summarize
When textile people blindly pursue low prices, it will be counterproductive, and prices may reach new heights after bottoming out.
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