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Power Pressure Labor Costs Lead To All Textile Industry Price Rise

2020/12/19 10:36:00 3

FabricDyeing FeeEmbryo Fabric

Recently, a notice of a hundred grey fabric enterprises to increase prices and stop production has swept the screen of friends. According to the study and exchange of printing and dyeing, this price rise of grey fabric enterprises is also helpless. The main reason is the increase of raw material cost in upstream. How about the textile market now? Please read the following report!


Cotton and yarn prices rise


Recently, news came from Jiangsu and Zhejiang markets that cotton yarn generally rose by 300-500 yuan / ton, with the highest price rise of about 1000 yuan / ton in the past week, and the high yarn count increased by 2000 yuan / ton. Market participants reflected that there were many orders in Guangzhou market. A few days ago, cotton yarn was still falling, and then it rose.


According to spinning mill customers, there is such a situation. The increase in cotton yarn price is mainly driven by the rise in cotton price, but it is not clear whether it can continue.


Market participants believe that this wave of market is mainly downstream replenishment at the end of the year, and whether consumer demand is increasing is still skeptical. However, many textile enterprises are generally optimistic about the future market.


Recently, both domestic and foreign cotton futures have been rising, and the market has ushered in a wave of small climax. As the downstream gradually enters the stage of replenishment at the end of the year, the number of lint transactions has increased, and the domestic cotton spot has slightly increased. The weather in Xinjiang makes transportation costs rise, and the price of cotton rises accordingly. All kinds of reasons promote the increase of spinning cost, which leads to the general rise of cotton yarn price. At present, the response is that the sales of medium and low-end yarns are better, while the high-end textile and clothing market is still poor, and the market performance difference among different varieties is still large.


Hundreds of grey fabric enterprises join forces to raise prices and stop production


On December 16, a hundred grey fabric enterprises will jointly raise prices to stop production. In fact, the reason for the price increase is very short, that is, the price of raw materials continues to rise. If the price of grey cloth does not rise, the weaving enterprises will lose money. It is understood that, at present, the price of products with low gram weight such as Chunya spinning and chiffon has basically increased by 0.03-0.05 yuan / m, while those with high gram weight such as four side elastic cotton and elastic cotton have a rise range of 0.10-0.20 yuan / m. The larger the gram weight, the greater the increase range.



Monitoring data show that since December, polyester filament prices continue to rise. For example, the price of fdy150d increased from 5350 yuan / ton to 5800 yuan / ton; poy150d rose from 5080 yuan / ton to 5625 yuan / ton; dty150d rose from 6850 yuan / ton to 7375 yuan / ton. According to the rules of the industry, whenever the raw material price increases by about 500 yuan / ton, the gray cloth price will follow up accordingly, and the increase range is generally 0.05-0.01/m. There is also the latest offer, it is said that there is a price but no goods.



Price increase of finished fabric in Zhongda textile business district


On December 18, Dongsheng (hengwang) cloth company in Guangzhou Zhongda Textile Business District issued a price adjustment notice, saying: due to the rapid rise of raw material prices, in order to ease the pressure, it decided to increase the price of some products by 0.5 to 2 yuan per kilogram from December 21.



Dyeing fee rises in Zhejiang and Hebei


Recently, the power supply in Hunan and Jiangxi is tight, and there are restrictions on the use of electricity in Zhejiang Province, which has aroused widespread concern of local enterprises and residents. Taking Zhejiang Province as an example, on December 17, a dyeing and finishing enterprise in Jinhua, Zhejiang Province, issued a notice on price adjustment of dyeing fees. Due to the power restriction, the company's production was entirely supplied by generators, and the production cost rose. Since December 17, the dyeing fee has increased by 500 yuan / ton.



Due to the winter earlier than in previous years, and due to the reduction of coal combustion, the decline of reservoir water level, the failure of wind power generation to generate electricity effectively due to freezing, and the reduction of external electricity, the power supply form in many areas is more severe. As a result, industrial power consumption has been restricted recently.


In the later stage, if the temperature drops further and the power load gap will be further expanded, there may be more industrial power outages leading to plant shutdown and production restriction. However, many production enterprises stop production due to various reasons, which may lead to a decrease in the supply of textiles and so on, which will lead to a new round of imbalance between supply and demand and lead to price rise before the festival.


Due to the rising price of natural gas, the production cost has increased greatly. In North China, East China, South China and Northwest China, there is a serious shortage of LNG gas, and the downstream transaction price has soared in a month. Due to the high cost of production materials, Hebei Province issued a notice on price adjustment of dyeing fees. The three dyeing and finishing factories decided to raise the dyeing fees by 400 yuan / ton from December 15 and 16, mainly involving warp knitted and weft knitted fabrics.



Editor's note: the market needs to wait and see


During this period, the market situation of fabric export basically continued the previous downturn. The appreciation of RMB exchange rate and the continuous rise of domestic raw materials had a great impact on foreign trade orders. On the other hand, the export freight prices rose sharply, and the basic fabrics were greatly affected. The production of some fabric orders was obviously transferred overseas, and the orders of low value-added products were facing a devastating blow. Affected by the epidemic situation, there is a great risk of order operation before and after the new year. First, textile mills are hesitant whether to stock up raw materials in advance to stabilize the quotation and reduce the risk of raw materials rising. Second, there are repeated signs of epidemic in Europe and the United States, with high risks of delayed shipment and cancellation, which makes it difficult to accept orders. The market trend in the later stage needs to be further watched.




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