Recently, the editor no longer wants to use any words to describe the market conditions, because everything revolves around “one center and two basic points” – focusing on ensuring production and insisting on removing inventory as much as possible , adhere to the principle of accepting orders if they are available.
In April, we used “cool” to describe the market situation of the textile industry at that time. Conventional chemical fiber fabrics also started a downward channel at that time. Now that we have entered June, originally The “coolness” has turned into “coolness”. What exactly is the textile market going through?
Fall down, polyester taffeta fell by 60%, and nylon silk fell by more than 7 cents!
At present, the order-taking situation in the entire Jiangsu and Zhejiang regions is not ideal. According to the sample companies monitored by China Silk City Network, most of the orders currently being made by traders will be executed until the end of June at most. There will be resistance to placing new orders, and the vast majority of weaving manufacturers are difficult to maintain production and sales. It only took a few days for the goods to be shipped. Compared with the same period last year, the sales dropped significantly. Judging from the types of transactions, there are no hot products in the market, and the transactions are relatively messy. Conventional chemical fiber fabrics such as polyester taffeta, pongee and nylon are all in a state of “missing orders”. In this environment, textile companies can only grab orders through price cuts and low prices, and competition is fierce.
For example, the current quotation of 190T polyester taffeta on the market is around 1.00 yuan/meter, compared with 1.60 yuan/meter in the same period last year; the quotation of 380T nylon taffeta is 4.30 yuan/meter. , it was above 5.00 yuan/meter in the same period last year, and other conventional fabrics such as pongee, peach skin, suede, etc. also declined to varying degrees. “The beginning of this year should be the time when prices are the highest throughout the year. Now, firstly, the raw materials are falling, and secondly, the market is weak. Everyone is selling goods at low prices, otherwise there will be no goods at all.” Salesman Xiao Huang said.
The question is, when will the price of gray fabrics, which has been falling for two months, stop? Xiao Huang said: “This month is difficult!” As the market capacity increases, the imbalance between supply and demand becomes more and more serious. In order to ensure normal production, manufacturers have used low prices as a weapon. Now the market has begun to increase the number of sales, especially for manufacturers that have moved to other places. High inventory makes them more anxious to ship. “Unless the raw materials can be stabilized, the price of gray fabrics will fall again under the current situation.” Mr. Shen, the owner of another weaving factory, also said.
Inventory has reached the highest level in the past four years, and weaving mills may be on “summer vacation” from July to August. !
After two years of destocking operations in 2017 and 2018, the inventory of gray fabrics in the entire textile market is extremely low. Especially in the first half of last year, many manufacturers had a backlog of fabrics that had been in stock for several years. It was sold out, but starting from the second half of 2018, the market entered the inventory accumulation stage. Although the increase was not large, the overall increase was still slow. Inventory accumulation in the gray fabric market is faster this year. Even in the traditional “gold, three, silver and four” small peak seasons, it is difficult for manufacturers to remove inventory because of the “low peak season”.
So, will the inventory that has already skyrocketed continue to rise again? The answer is yes. “The inventory pressure now feels greater than it was in 2015!” Mr. Shen, the owner of a textile factory, said. On the one hand, local textile manufacturers have insufficient orders, and production and sales are difficult to balance. In addition to being in a state of accumulated inventory in the past month, many of them set up factories in other places and return gray fabrics to Shengze. The inventory will be even larger. Therefore, in the next six months In March, if manufacturers’ operating rates do not drop, the market will usher in a “high inventory” cycle.
In addition, it is understood that manufacturers currently have no strong intention to reduce loads on a large scale in June. Most manufacturers will make inventory in June and then have half of the inventory in July-August. A month-to-month high temperature holiday will relieve inventory pressure. As of June 5, the operating rate of looms in Jiangsu and Zhejiang remained at about 70-80%, of which the operating rate of water-jet looms in Shengze was about 90%; the operating rate of warp knitting was about 80%; the operating rate of Xiaoshao circular knitting machines was about 50% -60%, the market as a whole is in a stalemate. “In the current market, you may lose money if you start the machine, but you will lose even more if you don’t start the machine, so we can hold on as long as we can and try to maintain normal production.” The owner of a warp knitting factory in Haining said.
In fact, for Boss Bu, price cuts and holidays were not their original intention. The various helpless actions they are taking now are just to relieve them from the pressure caused by reality. During the chat, many cloth bosses placed their hopes on the market situation after September, so for July and August, they believe that as long as they survive this “most off-season”, they may be able to “fight” for a better future!
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