Gray Fabric Inventory Increased By 10% And Fabric Price Decreased By 20%! At This Time, Is The Textile Market Entering The Market To Copy The Bottom Or Continue To Wait And See?

Half a year has passed this year, and the biggest feeling of most textile workers is that the market situation this year is really not good, there are many samples, but few orders. Of course, there are very few good ones, but it is difficult to promote the whole textile market, or to be fully promoted. However, recently, the textile market suddenly showed signs of improvement. The operating rate of textile mills rose, and various orders began to be placed. What is the specific market situation?

Textile inventories rose sharply and prices fell rapidly

At present, the overall textile market is still not out of the haze of the off-season, the inventory is still high, and the growth rate of inventory is also unusually high. According to the year-on-year growth rate of textile industry inventory announced by the National Bureau of Statistics, the first half of 2018 was relatively reasonable and stable, with both year-on-year growth and three consecutive months of decline in inventory. However, since the second half of 2018, the growth rate has been out of control. Even in the traditional peak season of textiles, March and April, the inventory is still growing. Until the textile slack season in summer, the inventory growth rate exceeded 10% year on year for four consecutive months.

　　 High inventory is not terrible, but the growth rate of inventory is not low. In fact, the hidden reason is the serious "oversupply". The textile industry chain is running at a high speed, but the demand of end customers is seriously lagging behind. Another phenomenon follows - the textile price "flies down".

From the changes in the ex factory price index of chemical fiber, cotton textile fabric and corresponding finishing after printing and dyeing published by the National Bureau of Statistics in the past two years, it can be seen that the price of chemical fiber fabric and cotton textile fabric, which we use most in daily life, ended the growth trend this year, and began to decline sharply year-on-year, with a strong decline, As of September, there was no sign of recovery.

　　 According to the feedback of a person in charge of an imitation silk weaving factory, they have nearly 1000 looms, which is not good enough to catch up with the market this year, leading to their particularly high inventory. Taking 75D hemp as an example, the current inventory of more than 1 million meters of grey cloth, although the current price has dropped from nearly 5 yuan/meter last year to 3.8 yuan/meter, orders are still very scarce.

The price of conventional imitation silk has bottomed out, and has been copied

The high inventory and low price of textiles make some textile workers worried about the future, but also let some people see hope. It seems to be the best way to deal with the current market when the price of raw materials, grey cloth and dyeing fees are not high. In fact, many people in the market have taken action.

In terms of the fabric that fell the most "miserably" this year, silk like fabric ranked second, and it is estimated that no other variety dared to rank first. The price of 75D 24T chiffon fell from 3.3 yuan/meter last year to 2.6 yuan/meter, and the price of 75D jumble fell from 4.8 yuan/meter to 3.8 yuan/meter... The price of all kinds of silk like fabrics fell by about 20%, almost overnight back to three or four years ago. Therefore, most of the textile people who buy the lowest price start with this kind of fabric. When the silk like fabric recovers in spring and summer next year, the price will definitely rise, so it is easy to make a small profit.

According to a textile enterprise in Wujiang area, they have a gray cloth factory with thousands of water jet looms in other places. At present, 75D chiffon is popular, and nearly 200000 meters of gray cloth are shipped every day. The customer is basically doing spot goods, which is to take advantage of the low prices in all aspects to buy the bottom, and sell the finished products slowly in the later period.

Hot selling T400 fabric, another form of copy

Of course, not everyone agrees with the prospect of silk like fabrics. After all, the current inventory of such fabrics is too large. The speed of destocking in the downstream market cannot shake the total inventory, and the power of price recovery is relatively insufficient. Then there must be a place for money in the textile market. Where is this place?

In fact, the recently popular T400 is an investment of textile workers. Why is T400 selected? The main reason is that compared with the raw materials used in other fabrics, the current raw materials of T400 are special and the supply is limited, which leads to the limited annual production of downstream fabrics. That is to say, if you have 1 million meters more T400 in your hands this year, others will have 1 million meters less. In addition to the excellent performance of T400 fabric, the number of orders in peak demand season every year is considerable. Limited supply corresponds to unlimited demand, which is bound to increase the price and profit of fabric.

Going to the market to copy the bottom is one of the ways to solve the problem that there is no single way to do in the current textile market, but to some extent, it has also overdrawn the future textile market. It may lead to further reduction of orders in the future. The inventory of all kinds of fabrics will continue to increase and the price will continue to decline. Fabrics obtained from bargain hunting are also likely to be converted into inventory.