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The textile market is in its traditional low season
[2024/7/8] [9] views

The textile market is in its traditional low season

There are different reasons for the rise

At present, the textile market is in the traditional off-season, and the market demand has declined periodically compared with March and April, and the polyester factory has chosen to pull up raw materials at this time, and the textile people have speculated on the reasons for the price increase, but most of them are just one word and have not been confirmed.

Amid all the speculation in the market, there are certain things:

First, the current round of polyester price increase is initiated by the polyester factory, and the price increase process also includes production reduction measures. At the beginning of the price increase, small factories in order to control inventory also appeared promotional shipments, after the inventory pressure was eased, prices followed.

Second, polyester factory price attitude is very determined, although in the current round of raw materials on the way up, textile factory resistance sentiment is strong, polyester overall production and sales are not high, in addition to June 18 production and sales close to 200%, the rest of the time production and sales basically maintained at 3-5% low, some of which are still supported by a large number of small factory sales promotion shipments. But even so, large factories are still continuing to pull up the price of polyester.

The last off-season price hike was 18 years ago

The last round of polyester prices rose in the off-season, the time was still in 2018, but the situation was very different from now.

In 2017, it is an old and new alternating node of the traditional weaving cluster upgrading and peripheral weaving capacity growth in the southeast coast, the old production capacity is gradually phased out, the new production capacity has not yet emerged, and the market supply and demand appear short-term mismatch. This led to a rare scene in the market in the first half of 2018 - a large number of conventional fabrics were crazy, a price a day, the inventory accumulated by weaving companies for several years was emptied, the cash flow in their hands was abundant, PTA exceeded 8000 points, polyester rose to 10,000 yuan, and finally there was a rise in raw materials, the higher the production and sales.

In 2024, the cash flow of weaving enterprises in the market will not be as abundant as in 2018. However, the same as 18 years, 2024 is also a year of substantial growth in weaving capacity, the author learned that many textile machinery enterprises in the first quarter of this year, the order volume broke a record high, and some delivery time even as long as 3 months. A large number of loom capacity expansion, the market demand for raw materials naturally exists, just because at this stage many weaving enterprises take the conventional fabric of small profits and quick sales mode, so the price of raw materials is more resistant.

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