Sep 06, 2023
The stocks of grey fabrics are accelerating mounting with ongoing high run rate but are controllable now. The performance differed in different regions. The stocks of warp knitted fabrics were especially high in Changshu and those of water-jet fabrics were medium in Changxing and Wujiang. Some fabric traders reflected that the stocks of fabric supermarket was high.
Finally, downstream players face especially tight capital. Export is not good in 2023 and players focus on domestic sales. Players also hold expectation toward the peak season on local market in the second half of year. However, domestic sales are mainly concluded under credit basis and the payment days are long. Many downstream fabric mills sold grey fabrics under low price but they meet difficulty in recouping capital, which ends up with tight capital. Some strong DTY plants and fabric mills also need to rely on supply chain fund or bank loans to restock raw material. Some plants with tight capital are forced to scale down run rate after they are unable to replenish raw material in time.