Raw Materials Market "Boom" Bombing, Triggering A Craze For Procurement! Bottom Or Pressurization?

Driven by the good expectations of the international trade situation, the 26 day PTA market ushered in a wave of strong operation, triggering an uproar in the polyester market. 26, 27, PTA futures face all the way forward, the main 1909 contract price rose continuously rose, 3.89%, 4.11%, 5.02%, 2.79%, and even once appeared to limit, refresh two month high. Then the good spread to polyester filament and other products, 27, 28, polyester filament Market "boom" bombing, polyester mainstream manufacturers quotations rose 100-400 yuan / ton became a common phenomenon.

For the weaving Market, the rising raw material market will give the market a rebound. It is understood that in the recent weaving Market, products that have been quiet for a period of time, such as polyester taffeta, spring Asian spinning, Oxford cloth, and so on, have improved to some extent in the market.

How is the fabric market in the near future? What kind of attitude is there for raw materials to pull up? Overall, from the first half of the year, what is the order performance in the weaving Market?

1, strong raw materials to stimulate, weaving manufacturers have been purchasing.

Under the stimulation of the strong raw material market, most weaving factories have more or less procurement actions. From the production and marketing aspect, we can see that in recent days, the production and marketing of polyester market has continued to exceed 100 market. 26, with the sharp rise in PTA futures, polyester production and marketing ushered in a small outbreak, polyester production and sales rose to 160% on the same day, 27 days is still running high in the vicinity of 120%.

In the early days, the weaving factories took account of the fluctuation of raw material prices and their own capital and inventory. The speculative operation of stockpiling of raw materials decreased correspondingly. With the rising of the raw materials, weaving factories have been buying again and again. According to statistics, the raw material stocking of weaving factories has risen to about 20-30 days, compared with the 10-15 days before, the growth is quite obvious.

"Recently, in the case of rising prices of raw materials, we also have a part of the procurement. Now the raw materials in the factory are about 20-25 days old," said Weng, manager of Wujiang Tong Bao textile mill. "On the one hand, it is a normal purchase demand. Since last year, some looms have been added. Under normal demand, the rate of opening is stable, and the demand for natural raw materials is relatively stable. On the other hand, we are afraid that the prices of the raw materials will increase, so we should prepare more raw materials ahead of schedule.

Suzhou maid Textile Co., Ltd. Shen manager also feel the same feeling, in the two weeks of raw material prices rising state, started some raw materials, now factory raw materials stocking basically in 20 days or so, some of them buy or not buy the factor of existence. But just need is still the key. Before the factory material is not much stocked, probably in about 10 days, so now consider the preparation of more raw materials to prepare for a rainy day. 

This year's textile market boom has become a fact that can not be ignored. The market is really too "mild", which has also created many negative emotions. However, the economic development will be cyclical, and there will be ups and downs. Conventional products such as polyester Taffa, spring Asia spinning, nylon spinning, simulation silk and so on will all have a large inventory pressure, and sales will be slow, and the shrinkage will be more serious. However, sales of some high-end fabrics such as wide home textiles, T400, high elastic cloth and so on have been reduced in the market, but the overall situation remains stable.

As a manufacturer specializing in the production of four side elastic fabrics, Wujiang Chuang Feng Textile has added some looms this year, and now it mainly produces 75D double deck four faced bullet products. According to Xu manager of the company, weaving factories all produce four side bullet products, the main selling objects are domestic foreign trade companies, and then exported to Europe and other countries and regions through foreign trade companies. Orders remained stable in the first half of the year, and now the orders on hand can basically last until August. Only in the aspect of product profit, the price of raw materials is lower in the early stage. When customers place orders, they tend to lower prices, and their profits decrease accordingly.

Tong Bao textile manager also said that this year, sales of elastic products were better than those of other products. Orders in the first half of the year were basically able to maintain the same level in the same period last year. The looms of their company 80--90% are mainly focused on the production of elastic fabrics, mainly based on domestic sales, except for normal procurement needs, and some traders are stockpiling goods ahead of time. However, the overall profit is indeed compressed, down by nearly 5-10%.

3, does raw material price fluctuation play a role of underpinning or increase costs?

As for the raw material market, the market has double functions. On the one hand, it supports the price of fabric products to a certain extent. On the other hand, it increases the production cost of weaving factories in disguise. Weaving factories have their own views for their own considerations.

Jinkang textile mainly consists of conventional four rounds, nylon four rounds, high elastic series and cationic four rounds. The company's manager has said that orders have been relatively stable this year, but there is no such thing as queues in the previous two years. Although the four rounds are popular, but now the market competition is fierce, so the price of products has been affected. With the rising price of raw materials, fabric prices will inevitably fluctuate with raw materials, even if fabric orders will not rise immediately, but at least they can play a role of underpinning.

Suzhou Yu Rong textile technology manager has different views on this. She said that the general market in the first half of this year is generally short, resulting in intense competition. The pressure on the weaving factory is relatively large. There is still concern about stock market pressure. In addition, the raw materials will not respond to the short-term price changes, and the downstream will be hard to digest. If the fabric orders are not saturated, in order to maintain orders, customers will have to bargain for the phenomenon of counter-offer, which will further compress the profit margins of the fabric enterprises.

Generally speaking, the rise of raw materials may be the result of hype in the upstream market, but it does provide a stabilizer for the weaving Market. In the second half of the year, what changes will be made in the weaving Market? The key is the market environment, the fluctuation of external capacity, and the positioning of enterprises themselves. Textile enterprises do their work in a dedicated, sophisticated and realistic way. They believe that the "busy season" is better for those who are prepared.