At present, the order for woven grey fabrics is obviously insufficient, and the operating rate is less than half. Most factories have been shut down for holidays, and only a few large factories are still producing. Orders for home textile fabrics are better than woven grey fabrics. In the case of rising viscose yarn prices and insufficient orders, weaving mills strictly control inventory. In terms of post-holiday orders, orders for home textile fabrics and knitted fabrics can be maintained until the end of April, and orders for woven grey fabrics are still insufficient.
The price of denim yarn is about 21,000-22,000 yuan/ton, a slight increase, the production cost rises, the profit declines, the enterprise orders are full, and the production period is about 50 days. As the Spring Festival approaches, the opening rate has reached more than 95%, returning to the pre-epidemic level. The deployment in Guangdong has been closed successively, and construction started around the tenth day of the first month. The downstream market is reluctant to increase the price of fabrics, and the domestic sales market is more serious. The market situation after the Spring Festival is still unclear. It depends on the price trend of viscose after the Spring Festival and the downstream demand.
The atmosphere of the Spring Festival is getting stronger, the market transactions are quiet, and the overall operating rate drops. Some companies have been on holidays, and all companies actively encourage employees to celebrate the New Year on the spot. Affected by factors such as high and firm upstream yarn prices and the suspension of some logistics, companies basically had no willingness to stock up before, and the inventory of conventional products rose slightly. As the domestic epidemic prevention and control situation stabilizes and vaccines are vaccinated, it is expected that the market will recover faster after the holiday, and most companies are cautiously optimistic.
At present, the supply of yarn is abundant, and the supply of high-count yarn has also eased, but the price is high. Companies basically shut down for holidays around February 7th. At present, their production is normal. Due to logistics suspension and downstream markets, there are insufficient orders. Most companies are doing regular product inventory to maintain production, and product inventory has increased to a high level in the past year. It is expected that there will be a wave of market after the start of the year to March, which is worth looking forward to. The current product profit has improved compared with the previous period.
There is no regular inventory for the production of order products. Local workers have a one-week holiday, and all non-local workers responded to the call to stay in the factory for the New Year. At present, the downstream dyeing factories have been closed, and the number of workers has been reduced, and the operating rate has been lowered. Orders have been scheduled to March, and there are no plans to accept orders for April. After that, it depends on market conditions, raw material prices, and workers' rework conditions after the year before making plans. With the effective control of the domestic epidemic, the market is expected to continue to improve after the year, the demand for clothing and home textile products may increase, and the thick varieties will enter the off-season.