Apparel / Textiles & Accessories

According to the practice of previous years, market orders will be placed in late August to pave the way for the arrival of the "Golden Nine". However, compared with the fierce 2020, this year's textile market looks a bit deserted, whether it is polyester raw materials or weaving Enterprises seem to have become "Buddha".

Since August this year, the market has gone down so badly! I just hope that the fabric orders in September will be slightly better! "This is the heartfelt words of a textile entrepreneur I have contacted. There may be improvement after September. After all, the low peak season is still the peak season, and the demand will increase compared with August. But this is it. There is no sensitive season of good news, but the textile industry is having a very awkward life!

The profitability of polyester filament companies has risen sharply

The beauty of the leading chemical fiber enterprises

In recent years, the chemical fiber industry, especially large-scale listed companies, has made good use of a complete production layout and precise price strategy to firmly grasp the pricing power of prices, and achieve double profits and double output.

Since August, listed companies have entered a period of intensive disclosure in interim reports, and several private polyester leaders in the textile and chemical fiber industry have also issued interim reports. Judging from the data disclosed in the interim report, the six polyester filament giants Tongkun, Xinfengming, Rongsheng, Hengli, Hengyi, and Shenghong have all achieved profitability without exception, and the specific figures are extremely “dazzling”.

Polyester filament is the largest in textile chemical fiber raw materials and the most widely used variety. China produces more than 50 million tons of chemical fibers each year, of which polyester filament accounts for the largest proportion. A few days ago, the China National Textile and Apparel Council held a mid-year economic operation analysis meeting. At the meeting, Chen Xiaoqian, an analyst at the China Textile Federation Industrial Economic Research Institute, analyzed the total profit structure of the textile industry in the first half of 2021. He pointed out that the total profit of the textile industry in the first half of 2021 was 107.89 billion yuan. Among them, the total profit of the chemical fiber industry is 32.66 billion yuan, accounting for 30.3%, ranking first in all industries.

The interim report data of the six major polyester giants also indirectly echo the conclusions of the above statistical analysis.

Unprofitable sales, missing orders, weaving companies are miserable

Different from the prosperous scene of the leading chemical fiber enterprises, the downstream enterprises are bleak.

The primary cost of textile production is the price of various raw materials. After the Spring Festival, under the blessing of the recovery of the downstream market, the prices of various raw materials rose rapidly, creating the highest price so far, although the price of polyester yarn began to gradually fall. However, at the end of June, the rally resumed, and at the end of July it was close to the highest price this year.

However, this wave of gains is only caused by the rise in the cost of upstream crude oil, and the downstream textile market is still struggling in the off-season, which cannot provide strong support for this wave of prices. The peak season of the market is not prosperous, and without the support of orders, it will eventually be difficult to bring up the same increase in raw materials, especially the unprofitable sales and environmental pressure of small weaving factories are increasing day by day, and the current operation is at a break-even point.

From the perspective of demand, this year, the second major outbreak of overseas epidemics will still have a great impact on the domestic textile industry. Under the epidemic, the decline in overseas clothing demand and the lack of foreign trade orders have made the grey fabric weaving market seem quite deserted. Especially in some areas with severe epidemics, even if there is a demand for clothing fabrics, due to the closure of the city and other reasons, the domestic cannot export to the local area, and the orders cannot be received. In addition, affected by the epidemic, the shipping market has been severely distorted. The original shipping cost from China to the United States has risen nearly five times, reaching nearly 20,000 yuan. Based on such a high price, major shipping companies plan to launch in September and October. Prices continue to rise, and now the global vaccination rate is gradually increasing and the epidemic is gradually easing, this chaotic phenomenon has not only not eased, but has become more serious. Some foreign shipping bills are even higher than the cost of the product. Makes foreign trade companies miserable.

Although August was in the off-season in the past, all kinds of sampling and proofing were endless, and preparations were made for the upcoming peak season, but this year the market appears to be relatively quiet. According to a person in charge of a textile store in the market, there are very few people looking for samples in the market recently. They no longer have a source of new customers, and some of the orders they make come from old customers for many years. The European and American markets in the vortex of the epidemic, under the blow of the city closure and production suspension, it is difficult for them to invest more energy in textile production. Without proofing and stakeout in the early stage, it is difficult to place substantive orders later.

On the one hand, the profit of the upstream chemical fiber industry has skyrocketed and countless money, and on the other hand, the difficult support of downstream companies can not bring prices and the sorrow of not getting orders. If things go on like this, the mismatch between upstream and downstream may bring them at the end of the year There are no small hidden dangers. I believe that after September, the "peak season" will eventually show its original appearance. I hope that the spring of the textile industry will come as soon as possible to temporarily alleviate this abnormal embarrassment!