The third quarter is the traditional off-season for the textile industry, which not only has to endure High temperature, high humidity, the intrusion caused by the rainy season, and many variable factors are still changing. As early as March, the yarn market has already smelled a weak trend, and the price trend has become increasingly erratic. During late May, the industry’s bearish sentiment was particularly strong, and various yarns performed differently.
1: Cotton, polyester and viscose series trends: Cotton yarn has increased in the off-season
Because yarn prices are highly dependent on raw materials, the trends of cotton yarn, polyester yarn, and viscose yarn are exactly the same as those of raw materials. Nowadays, the traditional off-season has penetrated deep into the bone marrow, and buying sentiment is suppressed. However, the trend of pure cotton yarn is still relatively strong, and even medium-thick count and long-staple yarns have experienced a slight increase recently. Polyester yarn is also shipped relatively quickly, but the performance of viscose yarn is hard to describe. Recently, when I walked into the high-density polyester and viscose production areas, companies were still worried, and even cut production to avoid deep losses. Compared with the relatively considerable profits in the cotton market, there is a huge difference.
2. Processing fees for cotton, polyester and viscose series: cotton>polyester>viscose
In the fourth quarter of last year, the processing fees for cotton, polyester and viscose series yarns only increased significantly, and textile companies in various places reversed their losses in response to the market. During the year, even if the traditional peak season is digested in advance and the weak demand in the off-season makes it more difficult for operators to operate, the inventory of various types of finished yarns is far lower than in previous years. Even though the current social inventory is in a state of slow rise, yarn prices are still particularly resistant to falling. In the near future, the profit of cotton-related yarns > polyester-related yarns > viscose series yarns. The profit level of pure cotton and cotton blended series yarns remains good. 32S generally has a profit margin of 1,500+, and 40S reaches 2,000+. The profit level of polyester-related series is lower than that of cotton, but it can still maintain a profit margin of 400-800. Profit margin: Most of the viscose series yarns are hovering between low profits or losses.
3. Weaving, printing and dyeing environment:
The comprehensive start-up of the national cotton textile industry has continued It has declined for four weeks. As of June 17, the comprehensive startup rate was 55.06%, a month-on-month decrease of 0.50%. Among them, for air-jet looms, the average operating rate was 59.00%. Weaving mills in various places that are short of orders or have orders but are difficult to make profits often have maintenance plans. During the Dragon Boat Festival holiday, most looms in high-density areas are shut down for vacation, and they are mainly started at the end of June and early July. However, most of the shutdown equipment is shuttle, and air-jet looms The machine load adjustment is limited; pure cotton and other air-jet looms in Zhejiang, Jiangsu, Shandong and other places have stable startups, among which pure cotton muslins are relatively profitable, and conventional white blank processing fees are also higher than the same period last year; for circular knitting machines, the average startup rate is 51.12%. Factories are quite motivated to produce fabrics such as milk silk, terry cloth, and German velvet. According to the industry, most of the above are common and low-end fabrics, with relatively small production costs and financial risks. However, sea freight is high and freighters are in short supply, so effective foreign trade orders are relatively small. It is scarce, so more goods flow into the middleman link.
As of June 17, the average operating rate of printing and dyeing enterprises in Shaoxing was 70.00%, which was the same as the previous month and increased by 0.88% year-on-year. The average operating rate of printing and dyeing enterprises in Shengze area was 59.25%, which was the same as the previous month and decreased by 0.25% year-on-year. The current incoming volume of gray fabrics in Shaoxing dyeing factories has increased slightly compared with last week. Most of them are foreign orders, but the shipment delivery time has been delayed. There has been little change in the start-up of dyeing factories in Shengze area. Enterprises are still cautious in placing and receiving orders. Foreign trade orders for brand clothing are nearing completion, and only replenishment is needed. Affected by high sea freight and the off-season demand, foreign trade orders for home textiles have seen a decline in order volume. Sporadic inquiries for domestic trade autumn clothing orders and market order preparations have begun, but most of them are preliminary trials, and it will still take time for the actual orders to be placed.
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