Market Deal Fluctuated Increasing, Price Index Rise Slightly

—Brief Analysis on Price Index 20121105

A. Summary of the Transactions of China Textile City in October, 2012

According to the Monthly Statistics, the textile market turnover in October is 474.96 million meters, with an increase of 45.53% on a month-on-month basis and 13.55% on a year-on-year basis. The trading volume in October reaches to 5,954,54 million yuan, with an increase of 46.68% on a month-on-month basis and 21.58% on a year-on-year basis; the total trading volume from January to September is 40,765,18 yuan, increase by 10.70% on a year-on year basis.

B. The summary on the recent fabrics market

Recently, the autumn sales in China textile city fluctuated increasing because of the Autumn Textile Expo, the business in the traditional markets increase gradually. Some cloths companies with a shop in front and a factory behind and large business households have good business in spot transaction and large orders for marketable autumn and winter fabrics due to the transformation and upgrade of products, the sales of some creative-pattern fabrics continue to highlight in the market. While the added value of fabric with after treatment get increased, such as dying, printing, jacquard, embroider, gold stamping, coating, yarn dyed and so on.

C. The analysis on the main price indices of textile products:

The price index of issue 20121105 of“China•Keqiao Textile Index”closed at 105.51 points, 0.22% higher than that of last week. The price index declined 1.17% from the beginning of this year and down 2.25% from the same period of last year. In this issue, the price index of is upward, including gray cloths, apparel fabrics and fashion accessories, which pulling the general price index rebounded slightly. Raw materials, home textile price index declined in different, relatively restraining the recovery rate of the general price index.

D. The analysis on the performance of this price index

1. Polyester materials market continued to fluctuate and go down while cotton price kept rising up. As the cruel oil price continues to fluctuate in a downtrend recently, the prices of PTA and MEG still vibrate and decline. For instance, the trading price of spot goods of PTA in east China was 8300 yuan/ton on Oct. 26 at least, and dropped to 7960 yuan/ton on Nov. 2; the trading price of spot goods of MEG in east China was 8050 yuan/ton on Oct. 26 at least and went to 7960 yuan/ton on Nov. 2. The trading price of spot goods of semi-dull polyester chips in Jiangsu and Zhejiang was 10100 yuan/ton on Oct. 26 on cash acceptance, and fell at 9975 yuan/ton on Nov. 2.The prices continued to decline. The domestic cotton price kept rising. For instance, the domestic 328 cotton was quoted 18704 yuan/ton on Oct. 26 and closed at 18721 yuan/ton on Nov. 2, rising 17 yuan per ton; 229 cotton was quoted 19620 yuan/ton on Oct. 26, and closed at 19637 yuan/ton on Nov. 2, rising 17 yuan per ton.

2. Polyester yarns market keeps weakened.Recently, Jiangsu and Zhejiang Polyester market trends first rose and then fell, Polyester Market stable and slightly upward to October 31, but the quotation of most enterprises still keeps average. Number of factories with high quotation declined. From November 1 to 2, the polyester price in Zhejiang and Jiangsu and the decline of DTY is more obvious. Price of POY, FDY went down in some places and most manufacturers gave discount for the price of shipping. The polyester market trends in Qianqing of China Textile City are almost stable as well as the quotation and the turnover of DTY and FDY is not good in this period. As the cruel oil price keep going down, price of polyester continues to be stable and weak. According to the prices of polyester raw materials, loss is prevalent all through the polyester industry chain in addition to PX. At present, over supply exists from the PTA to the polyester industry, and the pressure on the stock is gradually emerging.

3. The quotations of cotton are still without contrast. Recently, the upstream cotton market price continues to rise up slightly, which supports the cotton yarn market to a certain extent. As the increase of the raw material, the prices of some fast sellers increase as well, but the real deal is difficult to finish. Over supply exists in cotton yarn market because of the lack of demand, so that the price of cotton yarn cannot rise as the raw material. As weaving textile and clothes companies’lack of foreign orders, the cotton apparels do not sell well in the busy season. Yarns companies continue to reduce or stop production, so the demand for cotton is still restricted. In Xiaoshan and Shaoxing, the prices of cotton yarns keep still, the business condition is not so well. In Qianqing Raw Materials Market of China textile city, the cotton yarns market still remains dull, and the prices basically keep steady but no adequate sales volumes are achieved, the business climate is in poor situation, yarns companies still undertake high pressures and are eager to sell goods.

4. The sales of grey cloths rise slightly. Recently, the business in grey cloths market of China textile city continues rises slightly and the price is almost stable, some of which increase a little. Because of the Autumn Textile Expo, orders of creative finished fabrics increase, so some of the cloth companies and shops raise maintenance. The turnover of finished fabric rise slightly as well as that of the creative fabric for winter, which makes the grey fabric’s turnover rise. Recently, the sales of blend fiber grey cloths tend to increase slightly with the rising prices; the sales of natural fiber grey cloths and chemical fiber grey cloth tend to go up with rising prices, causing to the increase of the price index on grey cloths.

5. The price index on apparel fabrics rise slightly as well as the turnover of creative fabric. Recently, the sales in apparel fabrics market of China textile city fluctuate and increase. Orders increase in the traditional market, and the turnover of creative fabric rises. Spot transactions and orders increase locally. The advantage of new-designed apparel fabric is obvious and some distinctive fabrics are favored and ordered by customers. In apparel fabrics, the business of cotton fabrics, hemp fabrics, polyester fabrics, T/C fabrics, polyester/wool fabrics, T/R fabrics, polyester/spandex fabrics, viscose fabrics, viscose/wool fabrics and fashion fabrics increase in different degrees, and the prices rise slightly in a steady trend. This caused the price index on apparel fabrics a slight rebound.

6. The sales of home textile declined slightly, and the sales volumes and prices of household textiles fell down. Recently, the business in household textile fabrics in China textile city tends to go down slightly with falling prices. In these days, the spot transaction of bedding fabrics in the traditional market of China textile city tends to go down slightly, the prices basically dropped slightly. In it, the sales of cotton reactive positioning printed ticking, full size cotton reactive printed sheeting, cotton yarn-dyed color checked ticking, cotton yarn-dyed striped and checked sheeting, cotton yarn-dyed checked sheeting, cotton jacquard printed sheeting and cotton jacquard printed ticking declined. In these days, the sales of curtains rebound, the prices basically keep stable, and the quotations of creative-pattern fabrics rose back slightly; the sales of jacquard curtain fabrics and printed curtain fabrics in creative designs rise back, some cloths companies and large business households have an increase in receiving orders and delivering curtain fabrics in a fixed position, the marketing of fabrics having registered patterns is still noticeable. Recently, the sales of curtain screens rebound slightly, the prices basically keep stable, some rising back slightly. The sales of conventional jacquard curtain screens, embroidered curtain screens, and printed curtain screens rebound slightly, The conventional variety such as snow voile and organdy sell well for the price advantage and the reprocessing to fashionable products, multi-technical products and creative products.

7. The volume of business in the autumn textile expo reaches to 5.8 billion yuan. 2012 China Keqiao International Textile Expo (autumn) was closed on the afternoon of Oct. 29. Both exhibitors and purchasers get harvest. The total amount of the purchasers in these 4 days is 28083 with the increase of 7.5% rather than last time, which includes 6232 foreign purchasers. The total business volume in this expo is 5.816 billion yuan, which is 7.6% higher than that of last time. During the four-day’s exhibition, various kinds of new designed fabrics are presented. Although the textile industry is a traditional industry, new technology is everywhere. In the face of fierce competition, the key to keep developing is innovation and creativity. In this textile expo, enterprises showed their new technologies and images and more than 80% brought their new products various from fabrics to textile machineries and make innovation the most attractive feature. The next Spring Textile Expo will be held on May 6-8 next year and almost one third visitors applied to attend on 29th, Oct.