Why the textiles market didn’t get warm for long?

    Influenced by the European debt crisis and the gradually increased cost, the textile market situation was not good even if some individual products changed technically.
    In the third week of November, the textile market changed slightly. The two main industry chains, cotton textile industry chain and chemical fiber industry chain, run into the opposite direction on price trend: the cotton price dropped slightly and chemical fiber price increased slightly, but both change range was not big and just responding the market adjustment. The drop and growth of industry chains decided by the transmissions of different products, and the source reason was the impact of downstream demand and products stock.    
    Unreal Rise of Chemical Fibers and Weak Cotton Market

    The chemical fiber market was not improving this week, the operating pressure of downstream textiles factories was still big, and their demand towards upstream products was low and the market support was not enough.  

In this week, chemical fiber industry increased slightly, but the growth rate was basically within 0.5%, which reflects the unreal rise trend.

    From the product point of view, PFY price increased just on individual varieties, showing the fluctuation was just the relative adjust with different trading days.

    PTA overall market increased slightly, but from Tuesday to weekend, it dropped and the drop rate was not reaching the level of the beginning of this week.

    Cotton textiles industry was opposite with chemical fibers industry, and the cotton market was weak.

    Lint cotton market price dropped slightly, but the drop rate of cotton yarns market exceeded 1%, which showed the drop of cotton was influenced by downstream market transmission factors. 

    Recently, with the growth of cotton farmers’ sold positivity, the cotton landings increased gradually. In the downstream perspective, influenced by power shortage, labor shortage, and RMB appreciation, the existing environment of textiles factories was bad, and the production capacity was not be promoted and the products stock was not be changed. So the cotton market was still weak.  

    The demand and usage amount were the most important factors which will influence cotton market this year. It is said that that the domestic cotton cultivated areas increased 8.5% in 2011, and the total output increased 21.2%, showing that the increased output was one of the main reasons for the drop of cotton price. However, the usage amount didn’t increase though the output raised, various substitute goods appeared and influenced the market.

    Generally speaking, there is no apparent improvement in the textiles market this weak, even if the chemical fiber chain increased slightly, which was just market adjustment and unreal rise. And, the cotton market was still weak. The whole textiles lacked of big support power, which showed no improvement since the cotton price dropped, and the export and production situation were also not good. The pressure of product stock and production cost were big, and it was not easy for the transformation of the textile factories. Enterprise crises became the phenomenon often appears in the textile industry, showing the serious crisis in textile industry this year.

    The increased labor cost pressure and impeded export were the external factors, and the increased raw materials cost was the internal factor for the development of enterprises.