Can The Booming Market Of Goods And Elastic Fabrics Drive The Whole Textile Market To Recover?

Recently, the news that some grey fabric factories are queuing up for goods and dyeing factories have burst warehouses and pressed cards has been spreading in the textile circle. Is the peak season coming? It is clear that a while ago, various factories took turns off work, reduced production, destocking, and reduced price promotions. Why did the market turn so upside down?

It is obviously inaccurate to say that the overall peak season has come, and this market is like a "local peak season". According to the market visit, the products that are currently popular in the market can be roughly divided into two categories: market goods and elastic order fabrics, and most popular textile and dyeing plants also process these two types of products. Weaving mills and dyeing mills mainly engaged in other fabric varieties did not feel the substantial market change.

According to Mr. Wu, the head of a textile factory engaged in the production of dice, their current grey cloth orders have not changed much from the previous period, and they are still hovering between accumulated inventory and de inventory. The person in charge of another dyeing factory that started with silk like printing and dyeing also said that the current situation is slightly better than that of the previous period, but compared with the same period of the previous two years, the dyeing vat is still not fully loaded, and the production capacity is only increased by 10% to about 8-90%.

The sudden attack of popular products stirred the market

Most of the goods in the market are conventional fabrics such as polyester taffeta, nylon spinning, imitation memory, etc., with clear characteristics: low price, large order volume, fast delivery, low quality requirements, etc. Elastic fabrics are relatively high-end, with high order costs, miscellaneous varieties and long process. These two types of products suddenly became popular in the market, which made the market calm for more than half a year.

01 Delivery date

The variety of elastic grey cloth is complex and diverse, but because the fabric characteristics cannot be kept for a long time, most of them only stay in the sample stage and lack of grey cloth in stock. With the recovery of the elastic market, a large number of elastic orders have been placed. The elastic fabric gray fabric factory has faced a great test, and it is difficult to ensure that each order can be delivered in time in full production.

The issue of delivery time at the printing and dyeing end is even more acute. Because the market has a large number of orders, low requirements, and basically no invoicing, the relative profit is high, which is popular with printing and dyeing plants. With the strong entry of market goods, the production space of other fabrics is basically squeezed. An old dyeing factory specializing in the production of disposable fabrics in Wujiang area, the market goods have been piled up on the aisle, and they do not welcome ordered fabrics to the factory.

02 Quality problems

It seems a little difficult for many people and machines to adapt to the instant transition between leisure and busyness. The quality problem is the most direct response to this maladjustment. Recently, weaving problems occur frequently. On the one hand, because of the sudden hot sale of a certain fabric, the loose strings of workers have been tightened, which makes them a little busy and difficult to care about, resulting in quality problems of grey fabric. On the other hand, some textile factories want to take advantage of the hot sale to mix some of the original stock of problematic fabrics with the gray fabric with good quality, which not only consumes the inventory of defective products, but also gains profits.

Printing and dyeing factories are accustomed to the low requirements of market goods, and it is easy to relax requirements and lower standards when producing other fabrics. In the face of printing and dyeing problems, I am also used to the disposal method of letting the market goods go, and it is difficult to accept normal repair and rework.

According to a trader, they have a lot of elastic orders recently, but the gray fabric factory that often takes goods always makes mistakes in its busy schedule. Gray fabric quality problems, delivery to the wrong dyeing factory, late delivery, and even more exaggerated is that the fabric made to order was woven wrong, and thousands of meters were also woven. Dyeing plants have also made things worse. The problems of workers, dye vats and pre-treatment have been greatly promoted. Now some factories refuse orders with higher requirements.

The market is loose, which gives reason for the increase of raw materials and dyeing fees

Recently, the downstream weaving market has been more active driven by market goods and elastic fabrics, and the upstream raw material side will not turn a blind eye to this favorable situation. This year, due to weak market and shrinking downstream demand, raw material prices are still rising weakly under various speculation and economic and trade policies.

Based on the analysis of the price trend of polyester fiber this year, the prices of polyester POY, FDY and DTY in the past month are all at a low value within the year. On the other hand, the raw material inventory in the recent week has declined significantly: polyester POY inventory has declined 4.5 to 4 days, polyester FDY inventory has declined 4.5 to 7 days, and polyester DTY inventory has declined 3.5 to 19 days. This rapid decline in inventory is inseparable from the booming demand for downstream weaving.

This year's polyester production and marketing performance is pulse production and marketing, without continuity. Through observation and analysis, the polyester production and sales will reach a small peak in half a month or seven days, which is also caused by the periodic replenishment in the downstream. The last peak of production and marketing reached 390% on August 14. In other words, the next peak of production and marketing will occur from August 21 to the end of August.

When the production and marketing peak meets the contraction of raw material inventory and the low price, the final result must be that the raw material price immediately ends the shock adjustment and opens the upward channel.

Dyeing plants are most sensitive to changes in market conditions. Dyeing plants that can process market goods and elastic fabrics will be troubled by the influx of orders. Of course, the solution to this problem is very simple, that is, through the price mechanism.

This year, the whole printing and dyeing market was affected by the contraction of downstream orders, and kept a secret of the rising dyeing fees. Even though the production of various dye chemical plants is reduced or stopped due to safety and environmental protection, the downstream dye plants rarely raise prices after more than half a year. Most of them increase the dyeing fees implicitly by "exceeding the cost" to balance the cost. But now the situation is different. Those dyeing plants that can refuse orders from customers and press cards have the courage and reason to raise prices instantly.

The sudden hot sale of market goods and elastic fabrics has changed the running state of weaving, printing and dyeing for more than half a year, and also foreshadowed the price rise of late raw materials and dyeing fees. However, we also need to think rationally about how long the "local peak season" brought by these two types of varieties can last, whether it can drive the whole textile market to recover "from point to area", or whether it can be "quenched" again by the off-season. At this moment, it is important to follow the trend and grasp this rare "peak season", but blind follow-up may just be "receiving orders".