Hundred schools of textile mills together to raise prices!Freight, raw materials, fabrics, dyeing cost, grey fabric pile up!

Fabric Price Increase

I heard the freight has gone up again!!Now is the price went up to grab the shipping space, grab the shipping space but can not grab the container, such as grab the container and the price went up……

According to the news, the shipping space from China to Europe may reach 13,500 US dollars!!Freight rates from Asia to northern Europe have hit record highs and are expected to rise sharply, threatening a wave of cancellations next year.Others say some customers have canceled orders because of the exorbitant shipping costs.Shipping space for the 40HC from China to the UK in January sold for $10,000.Another source said, “Heard the offer was $13,500.”And with a shortage of containers and soaring rates, shipping companies are charging surcharges.Despite the uncertainty over the availability of equipment, a UK freight forwarder source said that in the two weeks from January 1, shipping companies were considering charging $1,000 per TEU.

On the other hand, a container ship belonging to KMTC, the KMTC JEBEL ALI, collided with another cargo ship, the BAHTERA SALBACH, while simultaneously leaving Surabaya, East Java, Indonesia.After the accident, the cargo ship sank and eight crew members were rescued.The “KMTC JEBEL ALI” container ship returned to Surabaya and remained at the port for investigation.As of now, the ship is still anchored at Surabaya port.It is obvious that the follow-up shipment date of the ship has been seriously delayed.

But even at a time when a box is hard to come by and freight rates are at record highs, shipping is still the preferred route for Chinese exporters.So while export orders have exploded, their profits have stagnated as shipping costs have soared.

With the rise of sea freight, recently, the textile market is also rising sound!

1, Cotton, yarn prices rose

Recently, from the Market in Jiangsu and Zhejiang news, cotton yarn up 300-500 yuan/ton, nearly a week the price of the most soaring 1000 yuan/ton or so, high yarn increased by 2000 yuan/ton, market participants reflect the Guangzhou market order transaction more.A few days ago cotton yarn is still falling, not a few days up again.According to spinning mill customers, this is true. The cotton yarn price rise is mainly driven by the rising cotton price, but it is not clear whether it will continue.Market participants believe that this wave of prices is mainly downstream replenishment at the end of the year, consumer demand is increasing, still hold a skeptical attitude.But recently many real estate companies are generally optimistic about the future.

The recent cotton inside and outside futures are rising, the market ushered in a wave of small climax, with the downstream gradually into the end of the replenishment phase, promote lint transaction volume has increased, domestic cotton spot up slightly.The weather in Xinjiang makes the transportation fee rise, the cotton price rises accordingly, various reasons cause the spinning cost to rise, and then drive the cotton yarn price general rise.At present, the response is that the middle and low-end yarns are selling well, while the high-end spinning and clothing market is still poor, and the market performance of different varieties is still very different.

2, Hundreds of grey cloth enterprises together to raise prices and stop production

On December 16, 100 grey fabric enterprises will stop production in a joint bid to raise the price. In fact, the reason for the increase is very brief: raw material prices continue to rise. If the grey fabric price does not rise, the weaving enterprises will lose money.It is understood that the current market like chunya spinning, chiffon a low gram of the product, the current price basically rose 0.03-0.05 yuan/meter, and the four sides of elastic, elastic cotton and other grams of high weight, rising range in 0.10-0.20 yuan/meter, the greater the weight of the gram, the higher the rise range will be some.

Monitoring data shows that since December, polyester filament yarn prices continue to rise.For example, the price of FDY150D product increases from 5350 yuan/ton to the current 5800 yuan/ton;POY150D has increased from 5080 yuan/ton to 5625 yuan/ton at present.DTY150D increased from 6850 yuan/ton to 7375 yuan/ton.According to the rules of the industry, when the raw material price rises by 500 yuan/ton or so, the grey cloth price will follow up accordingly, generally rising by 0.05-0.01/ m.Have the latest quotation, it is said that the price is out of stock.

3.The price of finished cloth is increased

On December 18, the Guangzhou Textile business district issued a price adjustment notice, saying that due to the rapid rise of raw material prices, in order to alleviate the pressure, it decided to raise the price of some products by 0.5 to 2 yuan per kg from December 21.

4, Zhejiang, Hebei electric costs rose

Recently, hunan province, Jiangxi province electricity supply is tight, zhejiang province also appeared to restrict the situation of electricity consumption, causing local enterprises and residents wide concern.Take Zhejiang province as an example. On December 17, a dyeing and finishing enterprise in Jinhua, Zhejiang province issued a notice on price adjustment of dyeing fee. Due to power restriction, the production of the company depends entirely on generators to supply production lines, and the production cost rises by 500 yuan/ton since December 17.

Due to the earlier start of winter than usual this year, and due to the reduction of coal burning, reservoir water level drop, wind power generation due to the impact of freezing effectively, and the reduction of external electricity, power supply situation in many areas is grim.So industrial electricity use has recently been limited.

In the later period, if the temperature drops further, the power load gap will be further widened, and then more industrial power failure may lead to factory shutdown and production restriction.The suspension of production by many manufacturers for various reasons may lead to a reduction in the supply of textiles and other goods, which in turn will lead to a new round of supply and demand imbalance, leading to price rises before the festival.

Due to the rise of natural gas prices, resulting in a substantial increase in production costs.Severe LNG shortage occurred in North, East, South and Northwest China, and the downstream transaction price soared in one month.Due to the high cost of production materials, Hebei issued a notice of price adjustment of dyeing fee, three printing and dyeing fining factories decided to raise the dyeing fee by 400 yuan/ton as a whole since December 15 and 16, mainly involving warp knitting and weft knitting fabrics.

Editor’s note: The market needs to wait and see

This period of time the fabric basic continuation of the early stage of the export market slump, the RMB exchange rate appreciation and domestic raw materials continuous rise alone has a great impact on foreign trade, export freight prices on the other hand, the basic fabric affected is bigger, some varieties fabric orders shift production overseas, low value-added product order has faced a devastating blow.Affected by the epidemic, the operation of orders before and after the Spring Festival is at great risk. First, textile factories are hesitant to stockpile raw materials in advance in order to stabilize the quotation and reduce the risk of raw materials rising.Second, there are repeated signs of the epidemic in Europe and the United States. There is a high risk of delay in shipment and withdrawal of orders.


Business Director at Shanghai Fumao Clothing Co.,LTD

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