Near The End Of The Year, The Game Between Polyester Factories And Weaving Enterprises Is Expanding.

At the end of the year, weaving enterprises will hoard raw materials, and when this time comes, raw material prices will not generally go up too much, or even occasionally give small concessions, and small sales promotion will allow weaving enterprises to buy more. Just like double eleven or two, shopping on the cheap side of the coin takes the opportunity to inventory, and does not affect the normal pricing of products. This has become a small tacit understanding between weaving enterprises and polyester factories. However, this tacit understanding has been broken this year.

Polyester factories break the "hidden rules" and weaving enterprises are "more difficult".

At the beginning of this year, due to the high inventory of polyester in polyester factories, the price of polyester was reduced after the beginning of the year, which made the weaving enterprises lose their stores last year. It means that you bought something in double eleven, and after a week, it was found that the current price is even cheaper than the promotional price.

Weaving enterprises and ordinary consumers are not the same, raw materials purchase orders of magnitude are completely different, which led to their more sensitive to the price. Last year, the loss of stockpiling food gave the weaving enterprises a "warning".

After a year of sluggish market, weaving and polyester factories are having a hard time.

For weaving enterprises, a large number of gray cloth inventory overstocked too much capital, the market is homogenized and overcapacity, cloth prices and profits can not go up, for various reasons, the machine can not stop, but the cloth is difficult to sell, can only continue to increase inventory.

For polyester factories, it is also facing a situation of high inventory. Basically, it is also a loss making business. The upstream PTA market is empty. If the problem of high inventory is not solved, the price of polyester will even fall further.

The last wave at the end of the year, the two sides of the game quietly started.

At the end of the year, raw materials can be said to be the last wave in the weaving and polyester industry chain this year, which is very important to both sides. It is precisely because of the natural antagonism between the weaving enterprises and the polyester factories that the two sides are playing a game of silence at the time of the last wave of market.

For both sides, the biggest problem at present is to go to stock. Excessive inventory means that the price is suppressed and the cash flow of enterprises is occupied.

For weaving enterprises, it is necessary to ensure their cash flow under the condition that the receivables are difficult to collect this year, so they can not spend much money on raw materials, and the inventory of grey cloth is difficult to cash in for a short time. In addition, due to the end of the year, the time of factory leave can be controlled. The time of early leave can replace the stop loss in a sense, but this way will have some adverse effects on the recruitment of workers after the beginning of next year. As for the problem of hoarding goods, because it is not optimistic that raw materials will rise next year, under the premise of avoiding risks, weaving enterprises generally choose to store less goods or not to store goods.

For polyester factories, it has been proved that buying up or not buying has fallen into an "old yellow calendar". At present, the downstream weaving enterprises have tight funds chain and are unable to withstand the price of raw materials driven by speculation. Instead, sales promotion can lead to a wave of careful calculation of textile people's purchasing interest. At present, the polyester plant will probably increase the intensity of production reduction to inventory, but because the implicit cost of this way is too high, so many ways should be used to do some inventory before the year.

Raw material prices have been forced up, weaving enterprises can not afford to buy.

However, judging from the current situation, the price of polyester filament has been rising, but weaving enterprises do not buy it. Polyester production and marketing are not improving, and polyester stocks are still accumulating.

Polyester enterprises have recently maintained some "deliberate" prices of polyester, and if they develop according to normal conditions, even if the future production and sales are picking up, the price of polyester will hardly rise in short time because of excessive inventory. Near the end of the year, if the price of polyester filament is raised, it is not conducive to inventory, but for polyester enterprises, it is nothing more than to increase some maintenance efforts, but it has increased the benchmark price of polyester next year. In the next year, the weaving enterprises will start to work, and the silk they want to buy is still to be bought. In general, this is a good thing for polyester enterprises.

But for weaving enterprises, the recent increase in polyester prices has further squeezed profits. Some of the well run enterprises can still accept them, but for those companies whose inventory is high and hard to survive, they will undoubtedly increase their pressure further.

Progress has been made in Sino US negotiations, and the market will improve next year.

This year, the market is getting worse. Besides last year, because the market is too good, the raw material end and the weaving end "release itself", the most important thing is that the demand for terminal textile and garment has not followed up, and has played a role in the "three years and bad three years" cycle of the existing textile industry, but the more intuitive is the impact of Sino US trade friction.

In December 13th, China and the United States agreed on the first stage of the economic and trade agreement. The US side will fulfill the relevant commitments to phasing out tariffs on Chinese products at a phased stage, so as to achieve a shift from the increase in tariffs to the fall in tariffs.

The gradual abolition of tariffs between China and the United States is absolutely a great advantage for the textile industry. It can fundamentally solve the problem of oversupply in the weaving Market from the demand side. If orders can be warmed up, the problems encountered by textile enterprises and polyester factories can be solved.

This is also true from the recent visit to the market. With the coming of every good turn, the textile market's confidence in next year has begun to fill up. At the end of the year, whether it is weaving enterprises, traders or dyeing factories, there is a busy scene this year, which may be a good omen for next year's market.