“Recently we are preparing to install 120 new looms! All preparations have begun, and some looms are ready!”
— A textile boss who just started production at the beginning of the year
Do you still dare to think back on this year’s textile market?
Since April, the textile market has begun to decline, with serious decline in order volume and product backlog. , profits shrank and demand slumped. After entering July and August, the market situation got even worse. Factory closures, production suspensions, load reductions, stock sales, low sales, high inventory, no orders, and falling raw materials have become high-frequency words. If the production capacity exceeds the remaining, you will reap the consequences. The textile industry has felt hopeless this year.
. In September, the market rebounded slowly, and the market transaction atmosphere was still light. Entering October, the market began to rise, and companies reported that the number of orders began to increase, but most of them were small orders.
In this year’s textile environment, as a company that has just lined up 160 machines at the beginning of the year, it is really a small probability event that it will line up another 120 new looms at the end of the upcoming year.
In the same market, the same textile market, but…
It is reported that the company only produces one variety – 75D double-layer four-sided bullet. Manager Xu, the person in charge, said: “We are a new factory this year, but we did not expect to encounter such a bad market. Fortunately, The market situation of our business is quite stable. Regular customers place orders all year round and have survived the off-season. This year, environmentally friendly fabrics have begun to shine, and we have followed the trend and launched recycled double-layer four-way elastic. The current sales are still very stable, mainly exported to Europe.”
Raw materials continue to fall, and there is insufficient confidence to increase the price of gray fabrics
Raw material prices fall It is also a common topic this year. Weaving companies are forced to purchase raw materials only due to financial pressure from various aspects, and will not stock up on excess. During the survey, weaving companies all said that raw material prices have fallen seriously this year. Taking polyester filament FDY 50D/24F as an example, the highest price reached 14,100 yuan/ton last year, and now it has dropped to around 8,400 yuan/ton. The price of raw materials keeps falling, and weaving factories dare not stock up on goods or raise prices.
Manager Xu said: “Although our gray fabrics are sold for 5-6 yuan/meter, the profit is only a few cents. Now that raw materials have fallen so sharply, customers will also lower prices. In September and October, our orders are higher than before A little more, that is, customers keep asking us to reduce prices, and the price of gray fabrics cannot rise. It would be great if we can maintain the original price.”
Although the output is not high, customers are taking orders steadily
28 machines have been installed first, and they will be launched in the next few days!
It can be said that there are really only a few companies in the market that have expanded their capabilities this year, and they only produce one variety and one specification. It is reported that the daily output of 75D double-layer four-sided bullets, a product of this specification, is only about 200 meters, which is not high compared with other conventional varieties. It is still necessary to arrange the machine again in a year when the market is not good. Benefit from the stable orders from old customers all year round.
In addition to orders and profits, what everyone is more concerned about today is the issue of payment. In the previous survey , most companies said that this year’s payment arrears are serious. In previous years, the payment cycle was usually 1-3 months. This year’s cycle has been extended, and it is very difficult to collect payment. A company once revealed that it had been asking for a payment of NT$900,000 for five months and still had not received it back. The people who owed it were not annoyed, but the people who wanted it were annoyed. Some companies even said that this year, some customers have been putting off payment again and again, or even simply refusing to pay. However, the company stated that there is no problem with payment arrears this year, and all settlements are in cash. It would rather not deal with customers who are in arrears, so there is no big difficulty in capital turnover.
It is said that a single variety has poor risk resistance, but some people have become a “breath of fresh air”. 160 units were invested at the beginning of the year and another 120 units were lined up at the end of the year. It is possible to expand the capacity during this year’s market storm. Even if it is just one person’s opinion, it also reflects that the market still coexists with risks and opportunities. The fatigue of the rising pressure on the entire industry chain When the situation has been formed, whether you can become what others call “other people’s market conditions” depends on whether you can assess the situation and seize the opportunities in the crisis.
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