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Under the background of preparing for the "Double Eleven" and increasing demand for fabrics in autumn and winter, the transfer of Indian orders, the expectation of extreme cold weather, and the increase in orders in the spring and summer of 2021, the textile and apparel market has started a wave of price increases and a wave of goods grabbing. Affected by this, the upstream raw material market also surged across the board.
Last Friday, the closing price of the main cotton contract 2101 was 14,560 yuan/ton, up 9.51% from the previous week. At the same time, in the textile raw material market, the quotations of chemical fibers such as polyester, spandex, and viscose rose across the board. After National Day, viscose staple fiber rose by 1,000 yuan/ton.
Recently, the supply of yarns, grey cloths, fabrics and other products exceeds demand, and the textile and apparel industry has also reappeared in the "order line up" market. According to a survey conducted by the Business Society, some clothing companies in Guangdong, Jiangsu and Zhejiang have seen rapid growth in orders since mid-September, and the order-arranging period has been extended to mid-November. During the National Day, the machines are running at full capacity. After the "cold winter" in the first half of 2020, my country's clothing industry is in a "golden period of consumption."
Kaiyuan Securities analyst Jin Yiteng said that at the current point in time, continue to be optimistic about the "Silver Ten" market for chemical fiber products such as polyester filament and staple fiber, viscose staple fiber, and spandex:
(1) The price of viscose staple fiber continues to rise, and the fundamentals continue to improve. The "Silver Ten" market is expected. At the current price of 10,500 yuan/ton, Sanyou Chemical’s viscose gross profit is nearly 1,000 yuan, which will reverse the past two years. The situation is at a loss and is expected to achieve profitability in Q4. Beneficiary subject: Sanyou Chemical.
(2) The "Silver Ten" of polyester filament yarn will arrive as scheduled after the long holiday. It is optimistic that polyester filament yarn will benefit from the continuous recovery of demand for textiles; the price of polyester staple fiber will rise sharply and is expected to fluctuate upward in the short term. Beneficiaries: Hengyi Petrochemical, Xinfengming, Sanfangxiang.
(3) Supported by the cost of dual raw materials of spandex, the market trading atmosphere is good, the spot supply on the market is slightly tight, and companies are willing to stand up for prices. Benefit subject: Huafeng Spandex.
According to multiple media reports, China has recently prevented domestic textile mills from using Australian cotton, and the Australian cotton industry is preparing to deal with the coming "destructive blow". A source said that Chinese textile mills have now been warned not to use Australian products, otherwise they will face the risk of quota reduction. It is reported that China is a big buyer of Australian cotton and imported 900 million Australian dollars of Australian cotton in 2018/19.
Taixing Hongyang New Material Technology Co., Ltd. has a professional R&D and production team, introducing advanced technology and equipment, and is committed to producing high-quality polypropylene high-strength yarns, polypropylene air-changing yarns, polyester air-changing yarns, ribbons and other products! The company is still growing, and we look forward to working with you for a win-win cooperation!
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