According to market feedback, in the past week, the quotation and trading volume of grey fabric in southern China have both decreased compared with the previous week, and the market presents a small wholesale trading pattern.
Why is this trend?
One is the change of market pattern. Since the beginning of this year, the cotton and fabric industry chain has shown a "hot" situation, with basic production and sales booming and prices rising. However, with the sharp decline of upstream raw materials, grey cloth also suffered from the negative impact of the decline in raw materials. In addition, after the hot sales around the Spring Festival, the downstream inventory backlog is large, and the "profit" transmission of the market is obviously not smooth.
Second, the market segments are hot and cold. For example, at present, in the southern market, the purchase and sale of four-way elastic fabric market is still hot, while the shipment of some plain peach skin velvet and Chunya textile is not smooth. The sales volume of imitation memory fabric in this week's market is maintained, while the purchase of cashmere Cardan velvet and crepe velvet is obviously not brisk, and the uneven cold and heat of various fabric varieties also cast a shadow on the market.
Third, the textile factories have all resumed normal production recently, and the output has increased significantly. However, the number of fabric goods sold is significantly reduced compared with the week after the year, especially the grey cloth produced with high price raw materials after the year, and no one even pays attention to it. The downstream market has a strong wait-and-see mentality and sales volume is shrinking. Now the operating rate of Shengze area is about 80%; at the same time, because the market is slowing down, the overall grey cloth inventory is stable at about 38 days.
To sum up, it is expected that the grey fabric market will continue to weaken in the near future, and enterprises will mainly take back funds from inventory. (correspondent: Camel thorn)
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