Nice spinning is on cold sale, dyeing fees have been raised, crude oil has risen again, spandex prices have increased…
Let’s take a look at what’s new this week!
Nice spinning cold sale
“Recently, the sales of 380 and 400 nylon silk are pretty good, and there are also orders, but the price is very low. Last year, many bosses stocked up a lot of goods, so now they are selling even at a loss.” A person from Shengze area traders said.
According to the current market situation, the prices of some fabrics have increased a lot. With the recent increase in raw material prices, they have rebounded to some extent.
However, not all fabrics are so lucky. As mentioned earlier, due to the poor foreign trade market, the plain CEY market is not good. The raw materials have increased by 2,000 yuan/ton, and the price of gray fabrics has dropped a lot. Nylon spinning is now We are also facing this dilemma. Since down jackets are not easy to sell this winter, many traders still have at least 3 to 5 million meters of nylon stock in hand. Its price has also dropped from more than 5 yuan/meter to the current level. 3.2 yuan/meter, this price is obviously a loss.
No matter what it is, it is not unusual to have more of it, and the same is true for gray fabrics. As crazy as last year’s nylon silk spinning was, it will be so lonely this year. There are a lot of stocks on hand by traders. They cannot sell them at high prices, but at low prices. There is still competition. Should we sell at a loss?
I believe the answer of most textile bosses is: “Sell!” If the current 3.2 yuan/meter is a loss, then maybe if you continue to put it down, you will only lose more. The demand is not always there, but stocking up and selling If you don’t drop it, it will always be there. Hoarding goods is not money. It may be worthless when it is no longer used.
So now many traders who used to stock up on silk fabrics will take orders as long as they have orders. If they can get rid of some of the stockpiles, they will be less stressed. Only by selling off the stockpiles can funds be withdrawn, and only then can they have capital to satisfy the market. needs.
The editor has something to say: For textile owners who stock a lot of goods, it may be a loss if they sell it, but if they continue to keep it, it will be an even bigger loss. There are tens of thousands of fabrics, so be careful when stocking up!
Dyeing fees increased
In the commodity market driven by rising oil prices, various energy and chemical materials have also experienced substantial increases. On March 6, the price of disperse dyes increased by 1,000 yuan/ton. On March 8, some thermal power plants also issued notices of rising steam levels. Subsequently, on March 9, some printing and dyeing factories in Shantou, Guangdong and Shaoxing, Zhejiang began to adjust dyeing and finishing processing costs due to the sharp increase in energy and dye costs, most of which were 500 yuan per ton.
When international oil prices and bulk commodities began to fall, textile workers had not yet begun to enjoy this joy, but they received a blow. Dyeing costs have really gone up! For terminal textile companies, they are faced with two situations. One is the weak textile market due to the sharp rise and fall in international oil prices, and the other is the rising costs due to factors such as raw materials and the epidemic. Amidst the turmoil in the global economy and situation, middle-end trading companies are under the most pressure. As a “sandwich”, you can really feel the pressure of squeezing. There are various increases on the cost side, and most of this increase is borne and digested by ourselves. At the bottom, there is pressure from end customers to lower prices and reduce order volume. The increase in dyeing fees is not easy for textile traders to accept. After all, the current profit of finished fabrics is generally around 10%. The direct profit of many fabrics is less than 1 yuan/meter. A single increase in dyeing fees swallows up 10%- 20% profit.
The editor has something to say:The current market is in a very confusing state. The phenomenon of polarization has always existed, but to put it bluntly, the demand is still insufficient.
Crude oil is rising again!
Russia-Ukraine negotiations are in turmoil again. Many Western countries continue to impose sanctions on Russia. The market is once again paying attention to potential supply risks. International oil prices soared by more than 8%! As of the close, the price of New York light crude oil futures for April delivery closed at US$102.98 per barrel, an increase of 8.35%; the price of London Brent crude oil futures for May delivery closed at US$106.64 per barrel, an increase of 8.79%! Morgan Stanley raised its international oil price forecast for the third quarter of this year from US$100 per barrel to US$120 per barrel.
As production and sales have been stagnant for days, factory inventories have risen sharply, and the pressure on shipments has increased day by day. On the days when futures are booming, the factory once again launched a promotional strategy, looking for an opportunity to have a surge in production and sales and reduce inventory pressure. Unfortunately, it backfired as the downstream still didn’t buy it and had no desire to replenish the goods! The market has reached a deadlock again…
What the editor has to say: Crude oil fluctuates frequently, and the production and sales of polyester filament are not good. In the future, we need to pay more attention to the raw material situation and replenish the inventory reasonably.
The price of spandex bundles increases!
This week, spandex manufacturers implemented the spirit of last week’s spandex sales meeting and combined with the actual situation, spandex manufacturers increased their prices by 1,000 yuan/ton from now on. March 9, �Due to the sharp rise in energy and dye costs, some printing and dyeing factories in East Shantou and Shaoxing, Zhejiang have begun to adjust dyeing and finishing processing costs, most of which are 500 yuan per ton.
Since March, many upstream companies have begun to send letters to increase prices. At first, only a few companies, led by leading companies, took action. Later, due to factors such as the pressure of continued cost increases, more and more upstream companies took advantage of passing on the price increase. Cost pressure has spread to textile companies with price increase orders.
On the one hand, the price of raw materials in the upstream is high, coupled with the abnormal pressure on labor costs this year, textile companies have to increase prices in order to survive; on the other hand, due to the outbreak of the epidemic at multiple points, many major textile provinces have suspended work, operations and production across provinces. , domestic sales have been hindered; shipping freight has increased, and foreign trade costs remain high. The operating rates of many industries are generally low. Demand in downstream industries such as real estate, home textiles, and clothing is weak, and orders have dropped sharply. In order to retain customers, companies dare not easily raise prices. But in general, after all, the supply of gray fabrics in the market exceeds demand, and it is difficult to raise prices. High costs and high inventories have put great pressure on the operations of weaving manufacturers. In addition, with the addition of raw materials Prices fluctuate too much and profits cannot be locked in. Many manufacturers of conventional products are already losing money every day!
The editor has something to say: If you dare not take orders, and if you join a group to reduce production and stop production, it may continue to ferment during the traditional peak season!
Outlook
With frequent changes in the cost side this week, the support on the cost side is no longer strong, and more is biased towards whether downstream demand can improve. However, demand is currently recovering slowly due to various influences, and it will take some time for the market to return to excitement.
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