Recently, clusters of epidemics have occurred in many places in China, and the impact of geopolitical instability has increased significantly, and the textile industry has been affected to a certain extent. In particular, the spread of the epidemic in the Yangtze River Delta region has had a greater impact on gray fabric weaving companies in this region.
Weaving companies receive weaker orders
Since the outbreak of the epidemic in late February, downstream weaving gray fabric companies have been affected by this, and the atmosphere for accepting orders has weakened from strong to strong. The epidemic has been fermenting to this day, and the orders that were pending in the early stage have disappeared, and there are very few new orders.
Mr. Zhang, a weaving factory that specializes in conventional chemical fiber fabrics, said: “Currently, the situation of receiving orders is average, but we dare not produce inventory. With the current market conditions, it is troublesome to have inventory and it is difficult to go to the warehouse. In addition, the price of raw materials is unstable, and the inventory is out. It’s basically a loss.”
“There is no inventory in the factory, and it has never been produced. The recent orders have just kept normal production, but they are only enough to last until the end of April. It seems that orders have been decreasing recently, and there may be inventory in the future.” Mainly sells elastic fabrics. The person in charge of the weaving manufacturer said.
The operating rate of weaving enterprises decreased
The global economy is currently under pressure and the market is turbulent and declining. The average operating rate of gray fabric companies has gradually declined, reaching less than 70%. According to data monitoring from Silkdu.com, the operating rate of weaving enterprises in Shengze is 67%. The reasons for the decline in the operating rate are firstly due to localized production shutdowns, and secondly, under the influence of the epidemic, the number of orders received has decreased, which has caused companies to reduce operations on their own.
The recent epidemic situation has been tense, control efforts have been intensified, and weaving companies have suspended work and production. Weaving companies generally face transportation problems of raw materials and products, and insufficient production capacity. At present, the order situation is temporarily stable, but the rising costs of various types have led to high production costs for enterprises.
The operating rate of printing and dyeing enterprises drops
In terms of dyeing factories, the order-taking atmosphere has also declined, and the number of gray fabrics entering warehouses has gradually decreased. According to data monitoring from Silkdu.com, the operating rate of printing and dyeing factories this week was only 66%. The operation rate of some manufacturers with good orders can reach 90%, and most of them are below 70%. Affected by the local epidemic, the speed of placing terminal orders has slowed down. The domestic and foreign trade textile market demand performance is poor, new orders are sporadic, and the seasonal differentiation of orders is not clear enough.
At present, most of the orders made by dyeing factories are still mainly spring and summer orders, mainly conventional polyester taffeta, nylon, four-way elastic, imitation memory, and imitation silk, with mixed varieties. In terms of delivery time, the quantity of gray fabrics entering the warehouse is average, and the general delivery time is about 5-7 days. Some busier manufacturers require more than 10 days.
A salesperson from a large local printing and dyeing factory revealed: “Recently, the orders received have been average, and 80% of the orders can be kept on, but it is relatively not that busy.”
Elastic fabric hot sale
Although the overall market situation is not satisfactory, there are still some gray fabrics with good sales. However, the most popular gray fabrics on the market in recent years seem to be elastic fabrics, which have hardly changed. The recent best-selling gray fabrics have always revolved around stretchable gray fabrics, such as four-sided elastic, T400, broken card, SPH, bubble grid elastic fabric, etc. Both weaving companies and dyeing factories mainly focus on this type of products.
Mr. Zhang, a weaving factory that specializes in conventional chemical fiber fabrics, also revealed: “Recently, the goods sold are four-way elastic, T400, broken card and other gray fabrics. There are very few other products, so the machines are not producing other varieties.”
The person in charge of a weaving manufacturer that specializes in elastic fabrics said: “Satin bubble plaid has been very popular recently. We received hundreds of thousands of meters of orders in the past few days.”
The salesperson of the printing and dyeing factory also said that recently, gray fabrics such as four-way elastic and SPH have been dyed more and more, and other varieties are mixed.
Gray cloth prices drop
Since February, the country has been affected by the epidemic, and foreign countries have been turbulent due to geopolitical factors, resulting in so-called internal and external troubles. International crude oil has skyrocketed and plummeted under the influence of geopolitical factors. Commodities PTA, ethylene glycol, polyester filament and other textile raw materials have also surged as a result, and they remain high today. As a result, gray fabrics have also been affected a lot. However, the price of gray cloth is very abnormal. No matter how much the raw materials increase, the price of gray cloth never rises and has been falling recently.
Many manufacturers have begun to sell gray fabrics at low prices due to gradually high inventories. The selling price varies depending on the demand for the variety, inventory quantity and other factors, ranging from 0.1-0.3 yuan/meter. General manufacturers have also lowered their gray fabric prices due to retaining old customers, mostly at 0.05 cents/meter.
a certainA salesperson from an online trading company said: “The price of raw materials increased a lot in March, but the downstream gray fabric market was not good, so the price of gray fabrics fell instead. The price of gray fabrics, such as SPH, dropped by 0.1 yuan/meter. The market is not good, and the cost pressure is very high. big.”
Mr. Zhang, a weaving factory that specializes in conventional chemical fiber fabrics, said: “The market is cutting prices, and we can’t do it if we don’t. Most varieties are reduced by 0.05 yuan/meter, and some are a little more.”
In general, raw material prices fluctuate at high levels, and the pressure on corporate production costs continues to increase. Demand in the downstream market is weak and new orders are few. However, as the epidemic is well controlled and the epidemic situation in various places gradually dissipates, the market may improve in the future.
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