In recent times, with the release of large batches of market orders, the sales of gray fabrics of various conventional fabrics have increased compared with November, and the number of gray fabrics in printing and dyeing factories also increased. The textile market ushered in a rebound at the end of the year, but this wave of good market conditions was not only due to the duplication of market orders, but also to a certain extent the practice of traders stocking up goods before the year.
Make production preparations in advance to prepare for the rush after the new year!
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In fact, it is a custom to stock up before the end of the year to cope with production after the new year. Traders will stock up on gray fabrics or finished fabrics at the end of each year. After mid-December last year, some traders seized the last wave of market conditions and were busy stocking up on gray fabrics and finished products. This year may be no exception. Traders also carry out the routine operation of stocking up at the end of the year, but the situation this year is different, mainly because the Spring Festival is earlier this year. Considering that there is still more than one month left before the Spring Festival, there is still more than one month left for the Spring Festival. Not much time to produce. The situation in printing and dyeing factories this year is weaker than in previous years, and the holidays may be earlier than in previous years. In order to catch up with spring and summer orders after the Spring Festival, traders must arrange some products before the dyeing factories go on holiday. In addition, you may receive urgent orders before holidays and need to ship goods quickly. At this time, stocking up plays an important role.
The price of gray fabric is at the bottom and may rebound next year!
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The current price of raw materials is at a relatively low level, and the price of gray fabrics is also at a low level. According to the past, the price of raw materials is more likely to increase after the year. We do not rule out the possibility of price increases for gray fabrics after the end of the year, so it is understandable for traders to stock up on goods. Taking 240T pongee as an example, it can be seen from the data monitoring of China Silk City Network that the current price of gray fabric has reached the lowest level in the past two years. And it can be seen from the curve that the price of gray fabrics has risen sharply since the beginning of last year. At the same time, due to the current weak textile market, low-priced gray fabrics will appear. However, the market expectations for next year are not clear. If the current market improves, it will be difficult to maintain the current price. And the sales volume of regular products will never be too bad, so take advantage of the low price of gray fabrics to stock up on more.
The weaving factory has year-end promotions, and traders are buying in at low prices!
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At present, the current situation of “sandwich biscuits” in weaving factories has not changed. Upstream raw material procurement requires payment for delivery, while downstream there is not only credit sales, but also It is the uneven production and sales that leads to the common phenomenon of imbalance in the annual income and expenditure. This puts Boss Bu under greater financial pressure at the end of the year. He wants to improve the capital chain through destocking and reduce prices to get cash. Traders are seizing on the “bottom buying” mentality of weaving manufacturers. , thus being able to purchase a large amount of lower-grade gray fabrics. From the inventory data of weaving manufacturers monitored by China Silk Capital Network, it can be seen that the recent inventory of manufacturers is 38 days, which is slightly lower than the previous period. Part of the reason comes from traders hoarding gray fabrics.
So is it necessary to stock up on goods? Is this “bet” correct?
Hoarding carries the risk of accumulating inventory
Judging from the stocking situation at the end of last year, stocking up is not optimistic. Because overall this year, most weaving companies have high inventories of gray fabrics and are under great financial pressure. In order to circulate funds, there is a lot of selling on the market. The prices are more advantageous than traders. The traders bought these gray fabrics at the end of last year. Many of them have become inventory, which is a blessing. Therefore, there is a risk of accumulating inventory when hoarding goods.
Hoarding also exists Possibility of profit
In March this year, some products in the imitation silk series have emerged after the holidays, such as SPH random hemp, SPH rhombus hemp, composite silk flower Yao crepe, etc., which all need to be queued up to get the goods, and demand exceeds supply. The price of nylon series products has also increased. For example, the price of 380T nylon yarn has increased by 0.05-0.1 yuan/meter. The delivery time of regular products in dyeing factories has also been extended to about 15-20 days, which is considered a crowded situation. But for traders who have stocked up on gray fabrics and ready goods in advance, these do not bother them, but they are enjoying themselves behind the scenes. Therefore, there are many benefits to stocking up.
Warm reminder
Many things have two sides, and the same is true for stocking up. We need to look at it from a dialectical perspective. It is said that Boss Bu only makes money from selling cabbage and only cares about selling white powder. In fact, this is quite appropriate. The market situation next year is unclear and no one can accurately predict it. However, for traders, proper stocking is necessary. Although there are still certain risks, the losses will not be too great and it is worth the risk.
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