Since the National Day, the entire textile market has suddenly become restless. Trucks loading goods from gray cloth factories have to queue up, and trucks entering warehouses from dyeing factories have to queue up. There are not enough trucks in the market. Immediately afterwards, the warehouses of some weaving factories became empty and their stocks were gone, and some dyeing factories began to run out of stock.
Everyone familiar with the fabric market knows that around October and November in the second half of the year, the finished product spot market will usher in a relatively concentrated year-end stocking. This is the more common “market order” in the market. During this period, the order volume is large, the types are limited, and the duration is short.
This is the time now, and the orders are coming more obviously than in any previous year. The main reason for this situation is the limited production suspension under the domestic dual-control policy, which has led to an imbalance between supply and demand. The continuation of this policy after the National Day has also allowed the market to foresee that future inventories will bottom out, and replenishment actions have also accelerated. Also because of the lack of confidence in the future market in the early stage, the spot market was not enthusiastic about stocking up. Now the backlog of replenishment demand has exploded, and all kinds of orders have been put into battle. When encountering the current orders for winter clothing fabrics, the market has been crowded, reaching a level of The market is at its highest this year.
The sudden cooling in recent days may once again drive the sales of winter clothing fabrics, making textile people who have been waiting for a long time excited again!
La Niña may last until February
It may intensify the price fluctuations of chemical fiber raw materials
On Thursday, October 14th, Eastern Time, the U.S. Climate Prediction Center stated that La Nina is coming and may last until at least February. The center said there’s a 57% chance of a mild event, and while it may take several months for scientists to confirm whether La Niña is indeed back, all signs point to it being here.
Wall Street News explained in an earlier article that La Niña mainly refers to a phenomenon of abnormally cooling water in the central and eastern Pacific Ocean. Generally speaking, when La Niña occurs, climate anomalies in the equatorial low-latitude areas on both sides of the Pacific Ocean will be more obvious, which will affect the temperature, precipitation, and storm patterns in many areas of the world, and have a certain impact on normal production activities.
The current weather pattern may mark the arrival of the world’s second consecutive La Niña.
Previously, rising raw material and energy prices exacerbated inflation, with the commodity price index hitting a decade or even an all-time high.
Bloomberg Commodity Spot Index, which tracks 23 energy, metal and crop futures contracts, rose 1.1% on Monday, surpassing the 2011 record Peak. The index is up more than 90% since hitting a four-year low last March. Specifically, the biggest increases were in energy commodities such as natural gas and oil.
CICC’s report shows that the La Niña climate may intensify commodity price fluctuations, thereby driving the strength of chemical fiber raw materials again.
Eating while watching the weather
Autumn and winter clothing The demand for fabrics is expected to increase significantly
As an industry that is greatly affected by seasonality, the saying “depending on the weather” has been circulating in the textile market, especially in the autumn and winter of nylon spinning. In the fabric market, “the colder the weather, the better the fabric sells” has almost become a law. In previous years, as the temperature plummeted, people’s demand for autumn and winter clothing such as down jackets increased significantly, and there were also “return orders” of autumn and winter fabrics on the market. The sharp cooling is indeed an important reason why the recent sales of down jackets and cotton-padded clothes cannot be ignored.
It is understood that the sharp cooling of the weather has greatly changed the outlook for the textile market. Many domestic down jacket factories have begun to stock up on a large amount of materials needed to make down jackets in October. For fabrics and down, raw materials have risen, and processing fees have also increased. Many factories are even hoarding raw materials and no longer producing them, basically waiting for price increases.
Whether the market is good or not is related to the market rules of depending on the weather. In the textile market, gallbladder is used as a matching fabric for autumn and winter clothing fabrics such as down jackets and cotton jackets. It is mainly made of pongee. , polyester taffeta, nylon and other conventional fabrics are mainly used. The annual national sales volume reaches tens of billions of meters, which is a focus of the autumn and winter textile market. The fourth quarter is Danbu’s home field. The colder the weather, the greater the market volume. It is a typical “eat by the weather” type of product. According to the tradition of previous years, the best selling period of gallbladder is from October to November. However, due to the special reason of dual control this year, the hot market seems to have been previewed in advance, and the subsequent market trend is unpredictable, which inevitably leads to worries.
Most textile people hold this attitude towards the future trend of clothing fabrics. For products that rely on the weather, the biggest fear is unsatisfactory weather. Now that the cold air has finally arrived, the temperature dropped by more than 10°C overnight, which may drive another wave of market demand for winter clothing fabrics. </p
