The textile market ushering in “Indian summer”? Behind the prosperity is still a crisis
Dec 31, 2019 ｜ by CT
Recently, there has been a small rise in the textile market. The upstream polyester yarn prices have risen, grey cloth stops falling, dyeing factory delivery period extended... As the so-called price rises, there is hope. What is the situation in the market now?
Dyeing and printing market: busyness is not all caused by demand
As far as the dyeing factory is concerned, due to the limitation of 50% of the production capacity of the setting machine in Shengze area, the output has been reduced suddenly. At the end of the year, traders are rushing to make orders for the next spring and summer models, so the dyeing factory has a rare busy stage, and the discourse power of the dyeing factory is gradually increasing. It is understood that most of the dyeing and printing factories in Wujiang area will be closed in early January and will stop billet collection at the end of December.
We all know that a large part of the reason for this wave of market conditions is caused by environmental protection limited production. Compared with the real peak season, it is actually quite different. According to the salesman of the dyeing factory, some employees have begun to return to their hometowns. As the number of workers decreases, the progress of dyeing will be delayed.
It can be seen that the extension of the delivery time of dyeing factories is not driven by demand. And at present, many traders have shifted orders with tight deadlines to areas around Shengze, such as Jiaxing, Huzhou, etc. Therefore, the reporter believes the status will not last long.
Fabric market: raw material prices rise, grey fabrics stop falling, but demand is not reliable, everything is futile
Recently, the fabric market has picked up slightly. Due to the rise in raw materials last week, the price of grey fabrics has finally stabilized. In terms of products, the current sales of stretch fabrics and silk-like series are better. At present, the sales of artificial silk and stretch fabrics have improved, and the sales of other varieties are still general. The overall environment of the clothing market this year is poor, the market is in recession, and people ‘s consumption concepts are changing. The number of clothes to buy is decreasing, resulting in fewer orders for brands than in previous years. Large orders become small orders, and small orders become proofing. The demand is weak, and the business of the entire industry chain has been affected to some extent.
At the same time, as the textile market starts to decline this year, in order to obtain orders, various enterprises will allow customers to credit to a certain extent, and the situation of arrears will intensify. However, if the customer does not pay for a long time, the financial pressure of the textile enterprise will be relatively large. If the arrears are not returned, the capital turnover will be problematic.
Postscript
In summary, the textile market itself has not picked up, but the wave of environmental protection limited production at the end of the year by dyeing and printing manufacturers has made the market “busy.” Coupled with the easing of Sino-US trade relations and the optimism of stocking tropical stocks years ago, the market has been boosted, but the reporter believes that don’t be fooled by the current wave of market conditions, terminal demand has not improved, and textile enterprise inventory is still at a high level. It is still unknown whether the textile market will usher in the peak season next year.
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