Thirty years of Hedong! “Double low” old products are “living on”
As we all know, pongee, as the “old man” in the textile market, has always been surviving in the industry with the “double low” characteristics of low cost and low profit. In the past three or four years, the market of pongee has been in a downturn with no improvement. Taking 320T matt pongee as an example, its price fell from 3.08 meters/yuan in January last year to 2.9 meters/yuan in September. It began to rise slightly in October and November, and rose sharply to 3.2 meters/yuan in December.
The picture shows the price trend chart of 320T pongee in 2016
Thirty years in Hexi! Capacity reduction market “rising”
Why has pongee been able to thrive in the last three months?
As far as the editor understands, apart from the peak season in October, the most important thing is that spandex yarn made by 230 machines came out at the end of last year, and the market is basically so good that it has no friends. It was at this time that the companies that mainly produced pongee began to “boil”: they have been sticking to pongee for so long, if they don’t change the model at this time, how can they change it? Then, the number of pongee companies suddenly dropped from about 156,000 to about 78,000. Those who were able to upgrade changed their original 190 machines to 230 machines. Production capacity was reduced, and the pongee market gradually eased.
Until today, the pongee market has been making steady progress. Still taking 320T matt pongee as an example, since the beginning of spring 2017, the price has remained above 3.1 meters/yuan. Although the price has dropped slightly during the period, it has not even been a month. After May, the price has slowed down again. Step up. As of August this year, the price was 3.5 yuan/meter, while the price of this product in the same period last year was 2.9 yuan/meter, with a price increase of 20.69%.
The picture shows the price trend of 320T pongee from 2017.1-2017.8
The environmental storm adds fuel to the fire
The editor mentioned above that after the trend dropped in May, the price rose again within a month. This is due to today’s hot topic: environmental protection! With the arrival of the fourth batch of central environmental protection inspections, textile companies in many places have been affected. Taking Shengze Town as an example, since May, the operating rate of looms in the district has dropped from 80% to 60%. The “three noes” enterprises without certificates, no environmental impact assessments, and no registrations will be eliminated! Companies that add water-jet looms without authorization will be eliminated! Enterprises that fail to meet the rectification requirements within the time limit will be eliminated! “Banning”, “limiting production” and “closing down” have simply become a nightmare for textile people!
The picture shows the operating rate of looms in Shengze area from 2017.2 to 2017.8
The environmental protection army is coming with great momentum, and Chunya Textile has naturally been affected. However, what makes people laugh or cry is that the way Chun Yatex is moving forward is becoming more and more “arrogant”, completely interpreting “Today you are treating me… The essence of “I’ll make it unattainable for you tomorrow”, the price has increased to one price a day, and downstream companies have to queue up to use cash, let alone lower the price. Anyway, as long as you don’t buy it today because it’s too expensive, then Sorry, please add a few more tickets for payment tomorrow, and then line up in a civilized manner!
In this way, pongee has transformed from a “sunset” fabric into a best-selling model today!
The next peak season will continue to be bullish
Of course, whether the next “Golden Nine Silver Ten” autumn and winter order season of Chunya Textile can be improved on the basis of “off season becomes peak season” in the first half of the year depends on whether the temperature of the upcoming winter can warm everyone Chun Ya Textile The boss’s heart is gone.
However, in the editor’s opinion, with the continuous advancement of environmental protection efforts, the production capacity may not be very high. Coupled with the recent “out of stock” wave, the inventory of pongee textiles must not be very large. So even if the temperature is not too pleasant in winter, the market price of pongee will not be much worse in the future.