In China the rate of opening of textile factories is picking up, and various orders are beginning to be placed. Inventory is still at a high level, and the growth rate of inventory is also unusually high. Even in the peak season of the textile industry, inventories are growing. This is the fourth consecutive month of inventory growth of more than ten per cent. There is a serious oversupply. The price of all kinds of silk-like fabrics has dropped by almost 20 per cent. Therefore, most bargain-hunting investors are buying such fabrics. When prices of these silk-like fabrics rise in spring and summer next year, they will make a profit.
The textile industry chain is running at a high speed, but the demand of end customers is lagging behind. Another phenomenon is that the price of textiles is falling rapidly. In particular prices of chemical fiber fabric and cotton spinning fabric are declining. Price of conventional silk-like fabrics has bottomed out. Taking advantage of the fact that raw material prices, grey cloth prices, and dyeing fees are not high, some people enter the market to look for the bargain-hunting and hope to sell at a high price when the market recovers.