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Textile Enterprises Before The Spring Festival To Reduce Raw Materials To Store Goods On The Textile And Polyester Market After The Year How The Impact?

2019/11/27 11:07:00 0

Textile MarketPolyester Market

Recently, Xiao Bian chatted with his little partner Xiao Wang, who was at home weaving factory, and talked about the problem of stocking at the end of the year. Xiao Wang said that their holiday should be advanced at the end of this year, and the raw materials may only be prepared for half a month.

Why do weaving manufacturers choose to make stock before the festival?

Like holidays and debt collection, the end of the year is a conventional operation of weaving enterprises before the new year of the year. It has a very long history. How can this "history" come into being?

"The price rises in the first year, and polyester raw material is like this every year.

For weaving enterprises, raw material prices account for a large part of the cost of products, which is one of the most important factors that affect the price and profit of grey fabrics. Therefore, textile people will be extremely sensitive to changes in the prices of raw materials.

After so many years of production and operation, the textile people have also set up their own experience in changing the price of raw materials.

In order to verify this conclusion, Xiaobian specially searched the box and found the price change data of polyester filament from 2015 to now. Sure enough, after the new year's holiday, the price of polyester will rise.


"The beginning of the year is complicated and requires raw materials to be arranged as soon as possible.

It is a trouble for every weaving enterprise to resume production every year. Nowadays, recruitment is difficult and recruitment is expensive. It has become a common phenomenon in the textile market, especially some skilled workers such as truck drivers, preservative workers, etc., all weaving enterprises need, but the market is scarce.

Therefore, after the beginning of the year, textile enterprises will generally put great effort into recruitment. Besides hiring, it is urgent to take orders and arrange production. Buying raw materials as the front link of production is naturally the sooner the better.

Little Theatre

There is a new weaving factory that is not ready for more than one year. It is ready to start after a year. Because of lack of experience or tight funds, the boss did not have the sense of stockpiling raw materials before the year. As a result, when the production began in the first year, there was not much material left. The boss was trying hard to recruit workers, watching the soaring price of polyester, calling the polyester factory, and some manufacturers still selling the products. The boss of the textile industry was bleeding from his heart and decided to store a batch of raw materials before the new year's holiday every year.

This year's textile market environment knows everything.

But this year this situation may be different from the previous two years.

This year's market is really "know all understand", terminal demand is insufficient, raw material, grey cloth price has been falling, weaving Market conventional product inventory "break through the sky", more importantly, weaving enterprise capital chain is very tight.

Under such circumstances, dumping has become a routine operation of textile enterprises: no money to buy raw materials? Drop it! No money to pay? Drop it! No money for water and electricity? Drop it! Too much stock? Or to throw away...

On the other hand, when buying raw materials, the production of products has been part of the "routine operation" of weaving enterprises. When almost all of the liquidity becomes stock, this phenomenon is not surprising.

In addition to the question of raw material prices, this year's raw material prices can be described by a "down" character.

The price of PTA has gone down since July, and now it has dropped to 4700 yuan / ton, a record low of 3 years.


The price of polyester filament is not too much, so the price of POY150D/144F is now down to 7000 yuan / ton.


Such a price trend has made the market lose confidence in polyester raw materials. Today, the raw material purchasing strategy of weaving enterprises is all bought and used. The purchase cycle is basically reduced to less than a week, and the price of raw materials will drop again after buying raw materials.

Coupled with the commissioning of the new PTA plant starting in November, the market has further ignored the price of polyester raw materials. "The price of polyester raw materials after the new year" is the most important precondition for the textile enterprises to store raw materials before the holiday. Now it has become an uncertain event.

If weaving enterprises do not hoard raw materials, what will the market do?

Influenced by factors such as excessive inventory of conventional products, tight capital chain and raw materials of polyester raw materials, whether textile enterprises will hoard raw materials before the festival will become an unknown number.

Here is a hypothesis that if textile enterprises reduce the amount of raw materials stockpiling before the Festival becomes a common phenomenon, what will happen to the textile and polyester market after the year?

"Raw material inventory is high.

According to the data monitoring of China's silk net, the stock preparation before the new year's Eve last year removed 10 days' inventory to the polyester plant. Even after such a year, the average stock of the polyester plant rose to a high level because of poor buying. According to this year's market, the stock accumulation of polyester factories will be far ahead of this year next year.



"Raw material prices fall

At the beginning of this year, the high inventory of polyester factories severely depressed the price of polyester. At that time, the market did not show signs of decline. PTA was still strong, but because of the high inventory of polyester, the price and profits could not rise. If the stock of polyester factories is higher than that of last year, if the price of PTA drops so much, the price of polyester will not be optimistic next year.

"Weaving enterprises or continue to inventory

Now the biggest problem facing the weaving enterprises is that the inventory of grey cloth is constantly depreciating with the price of raw materials, which makes traders reluctant to hoard goods, and the burden of inventory is on the weaving enterprises. Once the prices of raw materials continue to fall next year, the market demand will not rise again. The inventory of weaving enterprises is likely to continue to accumulate, and then continue the vicious circle of the second half of this year.

If this happens, then the next year's time may become a continuation of the downturn in the second half of this year. This is what textile people do not want to see, but from the current situation, there is a great probability that this will become a reality.


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