As the Spring Festival approaches, the textile market has not died down as expected. Instead, there have been fiery scenes in some companies. The recent tensions in US-Iran relations have also aroused the fragile nerves of textile people.
As the end of the year approaches, what are textile people busy with? Facing the constantly fluctuating market, how will textile people react?
It’s almost the New Year, and textile people are all What are you busy with?
At this time, some weaving companies have already gone on holiday. Even if they haven’t gone on holiday yet, the year’s work has basically ended, and the remaining These are just some finishing touches.
Manager Hu, the head of a textile company that specializes in four-way stretch and nylon fabrics, said that although the factory will not have a holiday until around the 16th, workers have now begun to return one after another. At present, one-third of the workers in the factory have returned to their hometowns. However, in recent years, more and more migrant workers have settled in Shengze, and the number of workers returning home this year has decreased compared with previous years. Nowadays, the operating rate of looms has gradually decreased. In addition to producing some inventory to prepare for next year, the rest is basically reconciliation and collection of receivables.
A weaving company mainly engaged in polyester taffeta Manager Wang, the person in charge of the company, also said that recently, he has been mainly reconciling accounts, collecting payments, inventorying warehouses, maintaining relationships with some large customers, and preparing for receiving orders in the coming year.
But for some textile companies, the time before the Chinese New Year is busier than usual. If you observe carefully, you will find that a considerable part of the orders received in the textile market at the end of the year are foreign trade orders, because during our Spring Festival holiday, they are actually in working hours, and they also start the New Year after Christmas. The holidays for foreign customers are over, and it is not surprising that the long-standing backlog of fabric demand has exploded during this period.
A weaving company that produces jacquards and embroidery mainly exports to the Arab region. It just received an order not long ago. It is a busy time for business. During this period, they are busy to catch up on orders from years ago.
It can be said that reconciling accounts, collecting payments, maintaining customers, and appeasing workers are the current main tasks of most textile companies.
U.S.-Iran relations are tense, polyester Raw materials ride a “roller coaster”
January 3, Iran Qassem Soleimani, commander of the “Quds Force”, was killed in a “surprise beheading” attack by a U.S. drone. Global financial markets were shaken, with Brent crude oil futures rising 3.5% month-on-month. Various polyester products, including PX, PTA, ethylene glycol, and polyester filament, have also started a wave of gains, and the production and sales of polyester factories have also experienced a two-day burst.
However, as Trump issued a statement saying “embrace peace”, and Iran announced the end of “retaliation” after symbolically launching a few missiles, the friction between the two sides quickly cooled down, and international oil prices subsequently The plunge. In the polyester market, in addition to polyester filament remaining stable, the prices of PX, PTA, and ethylene glycol all fell to varying degrees.
Polyester brought about by the recent US-Iran conflict The ups and downs in raw material prices can be said to be a microcosm of the textile market in 2019. In 2019, there were many times in 2019 that raw material prices rose sharply in a short period of time due to various good news, but they would soon fall back. It is precisely because of many such experiences that textile people have developed a “heart of steel”.
After facing sudden changes in raw material prices, Also be able to analyze calmly rather than making hasty judgments.
The person in charge of a weaving factory specializing in pongee and polyester taffeta Manager Zhu said that after many fluctuations in raw materials this year, he would not immediately take action when he saw the price of raw materials rising again. If it had not been rising continuously, he would not have changed his plan to buy more raw materials.
Mr. Wu, the person in charge of another Nantong weaving company, also said that the recent raw material prices are not stable and it is unclear whether the prices will really rise, so he still chooses to wait and see. .
Today’s textile workers often choose to “let the bullets fly for a while” when faced with rising raw material prices.
Difficulty in receivables is a pain point, transformation and upgrading have become consensus
For most textile companies, the market this year is not as good as expected, and the upstream and downstream capital chains of the textile industry are very The situation is tense, so the account period is much longer than in previous years.
A trader with an annual output value of 20 million yuan, which mainly produces printing products, Mr. Hu complained that this year’s account period has increased from one month in previous years to It has been extended to three months, and now it is almost the Chinese New Year, but there is still an account of 1 million that has not been recovered, and I don’t know how much money I can get back before the Chinese New Year.
Accounts receivable are slow, High financial pressure is a reflection of the poor textile market this year, but on the other hand, there are also bright spots in the textile industry this year. The overcapacity of water-jet looms and the decline in sales of conventional products have also forced companies to transform and upgrade.
Mr. Wang’s company mainly produces high-end polyester taffeta, and his business this year has been good. Unlike conventional polyester taffeta, high-end polyester taffeta has a higher threshold and requires a certain technical level. The sales volume in the market has been good. Mr. Wang said that because the products are unique, customers come to him all year round to get goods. However, I heard that some places in the market that sell narrow machines do not sell very well, and many surrounding factories are under inventory pressure. It is also relatively large. I think that for products to sell well, they must meet the needs of the market and cannot follow the trend. At that time, everyone thought that low-end products were easy to make money, so they swarmed into the machine, which could easily kill the product.
Manager Shi, the person in charge of another company that mainly produces imitation silk, also said that during this year’s sales process, the best-selling products were mechanical bombs made of differentiated fibers, while traditional mass-produced goods have too many people to make them because of their simple process. , it cannot be sold at all, and even if it is sold, there will be no profit. And some products developed with novel raw materials are very popular in the market.
China-USfrictionhaseased,agoodsignfor2020
Duringtheresearchprocess,textilepeoplegenerallybelievedthatinadditiontoovercapacity,Sino-UStradefrictionwasthemainreasonforthepoormarketthisyear.Recently,therehasbeengoodnewsaboutSino-UStrade.
OnJanuary9,aspokesmanfortheMinistryofCommercerevealedatapressconferencethatChinawillsignthefirstphaseofaneconomicandtradeagreementwiththeUnitedStatesnextweek.Accordingtopreviouslydisclosedinformation,whentheagreementisreached,acertainpercentageofthetariffsimposedbytheUnitedStatesonusduringtradefrictionswillbeexempted.
In2019,althoughtheSino-UStradefrictionshaveeasedseveraltimes,theUnitedStateseventuallywentbackonitswordandnosubstantialprogresswasmade.Theagreementreachedthistimeisdifferent.Thereductionandexemptionofadditionaltariffscanbesaidtobereal.
As for the market situation in the new year, under the drag of the big market situation in 2019, Although textile companies dare not be overly optimistic, they are also full of hope.
Finally, I wish the textile people
In the next period of time, payment collection will be smooth,
It will be difficult to receive orders in the new year.
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