Price Increases Hit Keqiao, Shengze and Zhongda: Raw Materials, Greige Fabric, Finished Fabric and Dyeing Costs Rise

2020-10-09

In 2020, the COVID-19 pandemic disrupted textile production and trade in both domestic and export markets. Orders fell sharply and many export-oriented companies were still recovering slowly in the third quarter. Home-textile fabrics, however, were one of the more active segments at the time.

Home-textile demand showed relative resilience

With consumers spending more time at home, demand for household products increased in some markets. Conventional home-textile fabrics such as linen-look fabrics, suede and peach-skin fabrics continued to see activity, while some wide-width fabric producers improved inventory turnover.

Industry participants interviewed in the original HENGQI article said that orders for home-textile products from the U.S. market were relatively stable, with some products supplied through large retail channels.

Raw materials, greige fabric and processing costs moved higher

At the same time, the market saw noticeable price movement in textile raw materials and dyeing and finishing. Selected yarns, spandex and other inputs became more expensive, which placed pressure on greige fabric, finished fabric and processing costs.

Because prices were changing quickly, many suppliers asked buyers to reconfirm quotations before placing orders. Quotation validity became shorter and some products in tight supply required earlier booking.

Fast-moving costs required closer sourcing coordination

The market environment at that time showed how closely material pricing, purchasing and production planning were connected. For apparel and textile buyers, timely confirmation of material prices and availability was important for controlling both cost and delivery schedules.

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