At the beginning of every year, news of various price increases are everywhere. Whether it is crude oil, polyester yarn or gray fabrics, they have to go through a new round of price increase announcements. Of course, this year is no exception…
Driven by factors such as tensions between Russia and Ukraine, the spot price of Brent crude oil once reached the US$100 per barrel mark last week, reaching an eight-year high. Futures prices also rose to more than US$97 per barrel this week.
The rise in crude oil prices is bound to make textile bosses worried. Market profits are not high. Coupled with the rise in raw material prices, many textile bosses have complained: “It’s too much!”
However, under the influence of the general market environment, the price of polyester yarn did not rise along with the increase in crude oil prices this week…
If the market is bad, why raise the price?
“Recently, the price of crude oil has been rising like crazy. At first, many raw material factories also followed suit, but recently many prices have begun to fall. The main reason is that the market situation is not good.” A textile boss in Shengze area said.
This year’s textile market does not seem to usher in a wave of concentrated orders like the beginning of previous years. The market after the new year seems to be extremely deserted, echoing the words of some trading bosses before, “There are no bright spots in the market now, and there are no good conventional products.” Even Nisi spinning can no longer be sold.” It is obvious that the market after this year is indeed not as good as in previous years.
When the market is bad, naturally fewer people buy silk. In previous years, it was always “buy when the price rises but not when the price falls”. However, when the price of polyester yarns actually increased, the textile boss’s response was “Whatever silk you buy, it will definitely fall after a while.” Yes, what kind of goods are there in this market now? Isn’t this pushing yourself into the fire? If there is an order, just buy a little and use it as you go.”
Indeed, judging from the situation last year, there was a period of time when the price of polyester yarn dropped wildly, which became normal every Monday. When visiting the textile market, the bosses said that they would buy some when the price dropped, but as soon as they bought it, the price dropped again… Like this The market situation makes it difficult for textile bosses to hoard raw materials casually.
With prices but no market, raw material manufacturers are left with whatever capital they can use to raise prices. It is better to maintain stability and act accordingly depending on the situation. Will raw material prices continue to rise in the future?
The obvious answer is yes!
Gold, three, silver and four may see price increases again!
At present, there should be no obvious changes in raw material prices for the time being, and some manufacturers may even conduct small promotions, but this situation is only short-lived.
February has also come to an end, and the first traditional peak season of the textile market is about to come. Not to mention that the peak seasons in previous years are not prosperous, but at least there are still orders placed. Starting from the year when the epidemic first broke out in 2020, Jin Sanyin Four seems to have become a “mythical” existence. Many textile bosses said: “When we first started work last year, we briefly received a wave of orders. At that time, the factory shipped five or six trucks of goods a day. It was really… During the peak season for gold, silver and silver, there are only a few orders, few and small.”
After three years of reduced market demand and two years of sluggish peak seasons, this year’s gold, silver and silver products should also usher in a real peak season. Then the textile market will inevitably be accompanied by rising prices of raw materials and gray fabrics in the future. According to the news of a series of price increases, the rise in crude oil alone cannot definitely drive up the price of raw materials. It still needs an improvement in demand to make the price of polyester yarn rise. If the prices of gold, silver and silver are unexpectedly good this year, the prices of polyester yarn and gray fabrics will rise a lot. A substantial increase.
Of course, as the market improves, textile bosses must also beware of the risks of overcapacity and inventory backlog. Sometimes a bicycle becomes a motorcycle, sometimes a gamble turns a mansion into a hut!
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