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As we approach the end of each year, weaving companies will stock up raw materials. Once this time, the price of raw materials will generally not rise too much, and even occasionally give some small discounts, small promotions, so that weaving companies buy more. Just like double eleven and double twelve, while spending cheap money on shopping, while taking the opportunity to destock, it does not affect the normal pricing of the product. This has become a small tacit understanding between the weaving enterprise and the polyester factory. However, this tacit understanding has been broken this year.

Polyester factory breaks "hidden rules", weaving enterprises "difficult and difficult"

At the beginning of this year, due to the high inventory of polyester filaments in polyester factories, the prices of polyester filaments dropped after the start of the year, making the weaving enterprises lose money in the last year. It means that you bought something on Double Eleven, and after a week, you found that the current price is even cheaper than the promotional price.

Weaving companies are not the same as ordinary consumers, and the orders of raw materials they purchase are completely different. This has led to them being more price-sensitive. Last year ’s losses in stockpiling have given the weaving companies a “l(fā)earning lesson”.

After a year of slump, weaving companies and polyester factories are having a hard time.

For weaving enterprises, a large amount of gray cloth inventory has accumulated too much capital. The market has serious product homogeneity and excess capacity. The price and profit of the cloth cannot go up. The machine cannot be stopped for various reasons. Difficult to sell can only continue to increase inventory.

For polyester factories, they are also facing a situation of high inventory. In terms of polyester yarn profit, they are also operating at a loss. The upstream PTA market is bearish. If the problem of high inventory is not resolved, the price of polyester yarn may even fall further. Possible.

The last wave of market at the end of the year, the game between the two sides quietly began

At the end of the year, the raw materials can be said to be a wave of zuihou in the weaving and polyester industry chain this year, which is very important for both parties. It is because of the buyer and the seller that weaving companies and polyester factories seem to have a natural opposition. Sex, and at the time of the zuihou wave of market arrival, the game between the two sides is also unfolding silently.

For both parties, the current oversized issue is destocking. Excessive inventory both suppresses the price and occupies the company's cash flow.

For the weaving enterprise, it is necessary to ensure its own cash flow when the receivables are difficult to collect this year, so it cannot spend a lot of funds to buy raw materials, and the gray fabric inventory is difficult to realize in a short time. In addition, as the end of the year is approaching, the factory vacation time can be controlled, and the advance vacation time can replace the stop loss of goods in a sense, but this method will have a certain adverse effect on recruiting workers after the start of the next year. Regarding the problem of stockpiling, because the raw materials will not rise optimistically next year, weaving companies generally choose to store less or not stockpile on the premise of avoiding risks.

For polyester factories, it turns out that buying up or not buying has become an "old yellow calendar." At present, the downstream weaving enterprises have a tight capital chain and are unable to afford the price of raw materials driven by hype, but promotion can lead to a Wave calculates the buying interest of textile people. At present, it is very likely that polyester factories will adopt a method of increasing production reduction to destock, but because the hidden cost paid by this method is too high, various methods were used to try to destock some years ago.

Raw material prices forcibly rise, weaving companies are unable to buy

However, from the current situation, the price of polyester filament has been rising, but weaving companies are not buying it. The polyester factory production and sales have not improved, and polyester filament inventory is still accumulating.

It is somewhat "deliberate" for polyester companies to keep the price of polyester yarns in the near future. If developed in accordance with normal conditions, even if production and sales rebound in the future, the price of polyester yarns will be difficult to rise in a short period of time because of high inventory. Near the end of the year, if the price of polyester filaments is now increased, although it is not conducive to destocking, it is nothing more for polyester companies to increase some maintenance efforts, but it will raise the benchmark price of polyester filaments next year. . In the coming year, weaving enterprises will start, and the silk that should be bought is still to be bought. Overall, this is a pros outweigh the disadvantages for polyester companies.

But for weaving companies, the recent increase in polyester filament prices has further squeezed profits. Some well-run companies are still acceptable, but for those companies that have high inventory and are struggling to survive, they have undoubtedly further increased their pressure.

China-U.S. Negotiations make progress, and market conditions may improve next year

This year's market has deteriorated. In addition to the fact that the market was too good last year, the raw material side and the weaving side "released themselves". The important thing is that the demand for terminal textiles and clothing has not kept up. The role of law, but more intuitively is the impact of Sino-US trade friction.

On December 13, China and the United States reached an agreement on the text of the economic and trade agreement in the diyi phase. The United States will fulfill its commitment to cancel tariffs on Chinese products in stages and realize the transition from increased tariffs to lowered tariffs.

The gradual elimination of tariffs between China and the United States is definitely a huge plus for the textile industry. It can fundamentally solve the problem of oversupply in the weaving market at the current stage from the demand side. If the order can be recovered, then these problems encountered by textile companies and polyester factories can be solved.

The phenomenon seen from the recent market visits is also the same. With the advent of one by one, the confidence of the textile market for next year has begun to be full. At the end of the year, weaving companies, traders, and dyeing factories have seen rare events this year. This may be a good omen for the market next year.

Source: Global Textile Network

Taixing Hongyang New Material Technology Co., Ltd. has advanced equipment and exquisite technology. It mainly produces 500D ~ 4000D polypropylene high-strength yarn, polypropylene air-changing yarn, polyester air-changing yarn and polypropylene ribbon. The praise of our customers.

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