After entering December, many people have begun to make year-end summaries. The editor also briefly summarized this year’s weaving market. Looking back, this year’s weaving market can be described as mediocre. The editor really misses the era of 2017 when “the machine buzzed and there was a thousand taels of gold”, but it seems that it is gone forever.
Thinking back to 2017 about the shortage of gray fabrics, queues to get goods, and doubling of profits, etc. Boss Bu misses him very much. The “sales champion” polyester taffeta is making all the difference in the weaving market, and manufacturers are making huge profits every day. This year, there is very little news about polyester taffeta, and it is silently submerged in the numerous conventional gray fabrics. So how are polyester taffeta manufacturers doing this year?
High load production,The polyester taffeta inventory is as high as one million meters
In fact The overall market situation of polyester taffeta this year is not good. Many manufacturers have high inventories, ranging from hundreds of thousands of meters to several million meters. At present, most manufacturers’ machines are running at high load, but they have few orders on hand. Most manufacturers produce some conventional varieties for spot use and ship them one after another, but the quantities are not large.
A company has 400 water-jet weaving machines Mr. Bao, the polyester taffeta manufacturer who owns the machine, said: “We have a lot of machines. This year’s inventory is too high. We only have about two months’ supply. We cannot continue production blindly, so the looms are currently running at 50%. This does not mean that we have lost confidence in the market. , but special treatment and flexibility in special times.”
Mr. Feng, the owner of another manufacturer with 80 looms, also told the editor: “Our small factory can still barely operate. At present, the machines are fully operational, but the inventory is more than 1 million meters. This year, manufacturers generally have a lot of inventory!”
Both volume and price fell, Polyester taffeta fell nearly 40%
The price and profit changes of polyester taffeta this year also reflect its situation. This year, the prices of conventional gray fabrics can be said to have dropped both in volume and price, and polyester taffeta is no exception. Taking the most conventional 210T polyester taffeta as an example, the price this year is 1.4 yuan/meter, while last year it reached the highest price of 2.2 yuan/meter, a decrease of 0.8 yuan/meter, or 36%! Some specifications of polyester taffeta have dropped by more than 1 yuan/meter. It can be said that there is no lowest, only lower!
The price of gray fabrics has dropped so much that profits have naturally been affected, and the drop has also been severe. Mr. Chen, who owns 56 looms, complained: “The price of polyester taffeta has dropped too much this year, and the profit is only a few cents. In order to support the workers, you have to make a few cents!” Mr. Bao also said: “Although the raw materials It’s falling, but gray fabrics are selling even lower, and the profit this year is only a few cents. Life is hard!”
The price of gray cloth is low, but in exchange it is still a pile of inventory, and the low price cannot drive its sales. After all, it was caused by the sluggish market. Sales of most gray fabrics declined, while sales of polyester taffeta fell by about 40%-50%, shrinking significantly. Manager Yuan, who owns 88 looms, revealed: “The sales volume of polyester taffeta has really decreased a lot this year. Currently, there are very few goods sold. Most of the products produced have become inventory. There are nearly one million meters of inventory in the warehouse!”
A timely help, The credit sales of polyester taffeta are good
Polyester taffeta Prices, profits, and sales are all unsatisfactory, but thankfully, there has been a slight improvement in the accounting period this year. Although there are still arrears, the payment is good. Mr. Peng, who owns 300 water-jet looms, said: “This year’s debt is okay. I basically make foreign trade orders, so they are settled according to the agreed time. Of course, it cannot be compared with last year’s cash payment, but overall this year is still good.” Calculated, the delinquency situation is not serious.”
Mr. Wang, the person in charge of another manufacturer with about 200 looms, also said, “This year, it is still mainly old customers. They all pay on a running basis. They take a batch of goods and pay a batch of payments, and finally settle it by the end of the year. The debt owed is 50% more than last year, and the financial pressure is a bit greater at ordinary times, but it can still be recovered, so overall it is not bad.”
If you are poor, you will want to change. Polyester taffeta manufacturers adjust their product structure
In general, this year’s polyester The situation of taffeta manufacturers is still not optimistic. Most manufacturers sell at small profits or break even, and inventories are generally high. Under such circumstances, some manufacturersThe board of directors has also made corresponding policies.
If you are poor, you will want to change. The above-mentioned Mr. Peng, who owned 300 looms, rented out 150 machines and used the remaining 150 for his own production. And this year the company’s positioning has also undergone fundamental changes. In the past, it mainly sold gray fabrics and had a sales department in the market. However, this year due to the shrinking sales of polyester taffeta, the sales department has been closed and the focus has been shifted to fabric trade. , so the cloth produced by the loom is mostly used for its own trade orders. Trade is also mainly foreign trade, and orders this year are relatively stable. A small number of looms are used to produce recycled polyester taffeta gray fabrics and sell them externally. Recycled fabrics are more popular this year, so the sales of recycled polyester taffeta are relatively optimistic.
Mr. Bao, who owns 400 looms, has also made production adjustments. Originally, we mainly focused on low-end polyester taffeta with ordinary specifications, such as 190T, 210T, etc. However, this year these products are unsaleable and have large inventories. Therefore, Mr. Bao has reduced the production of conventional gray fabrics and shifted his focus to multi-F high-end products. In terms of density specifications, such as 400T, 420T and other specifications. The sales volume of this kind of mid-to-high-end gray fabrics is negligible and can maintain the normal production of enterprises.
Polarization,Some polyester taffeta manufacturers are operating well
Such a transformation is forced by the situation and is also a wise move. But it may cause another problem. The number of polyester taffeta manufacturers making conventional varieties will decrease, and the supply of conventional polyester taffeta gray fabrics will decrease. This situation may indeed exist in the market at present. The reason why the editor says this is because during the research, I encountered several manufacturers that produce conventional polyester taffeta gray fabrics with good conditions. Mr. Wang, who owns 200 looms mentioned above, is one of them. He said that the sales volume of polyester taffeta this year is generally good, not much different from last year. One batch can be produced and there is basically no inventory. Another manufacturer with 80 looms has a similar situation, with stable sales, no inventory, and good debts. It pays a sum of money for a batch of goods and has no accounts receivable.
For these manufacturers with stable customer sources and stable shipments, falling gray fabric prices and compressed profits are undoubtedly the biggest problems. In today’s weaving market, “small profits but quick turnover” no longer exists. The price of gray fabrics is surprisingly low, especially the prices of some sold goods are really eye-popping.
“Whether the sales volume is good this year mainly depends on the price and how much the manufacturer earns. In previous years The profit from just making a loom can reach 50-60 yuan a day. This year, we are trying every means to increase the volume. If we can make 20 yuan a day from a machine, we will be very happy. If we make 10 yuan, we will be satisfied. But there are also manufacturers who make 50-60 yuan a day. You can sell it for a few yuan, as long as you don’t lose money and can survive,” Mr. Wang explained helplessly.
Market outlook
Most polyester taffeta manufacturers are not optimistic about the market outlook and lack some confidence, mainly due to the imbalance between supply and demand. , continued trade war, weakening demand and other factors. Mr. Bao analyzed: “This year’s poor market situation is mainly due to supply and demand issues. Both supply and demand are weak. Now there are so many supplies and the price cannot go up. Next year will not be very good.” However, there are some optimistic bosses about next year. They still have great confidence. They believe that after a wave of destocking operations at the end of the year, inventory pressure has eased, and based on the current ordering trend for next spring and summer, it is expected to be better than this year.
In the editor’s opinion, no matter what the market situation is next year, Boss Bu should Facing it positively, as the saying goes, “the troops will come to block the water and the soil will cover it.” As long as they make timely adaptation strategies, enterprises can find a bright road of their own. So don’t worry, just work hard and work hard.
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