One of the things that has attracted the most attention in the textile industry recently is the joint production suspension initiative issued by many warp knitting industry associations.
Recently, the Jiaojiang District Textile Industry Association of Taizhou City also issued a production suspension proposal, and the textile industry was “turbulent” for a while.
The content of the proposal is mainly caused by the recent price increase of polyester yarn. The recent polyester industry chain After the price increase was transmitted to the terminal polyester filament, the price of polyester yarn skyrocketed within one month.
Because July and August are the traditional off-season for the textile market, the sharp rise in polyester prices in the off-season is particularly eye-catching.
In today’s Chinese manufacturing industry, there is an obvious situation that the price of end products cannot rise, and this is particularly obvious in the textile industry. This is very obvious in the polyester industry chain. PX went up, and then PTA also went up. PTA went up, and then the price of polyester yarn went up. But after the price increase of polyester yarn, the price of gray fabric did not rise.
According to the content of the appeal letter to the leading upstream chemical fiber companies, there are two main reasons why the price of warp knitting products cannot rise: on the one hand, there are serious receivables problems and customer arrears. The payment cycle is long; on the other hand, the overall warp knitting market has been poor in recent years, making it difficult for warp knitting companies to survive.
In the final analysis, it is still the impact of overcapacity.
Is it useful to stop production in Baotuan?
Hold together and issue a proposal to resist the rise, which may make big news in the short term and play a certain role. But in the long run, the leading upstream chemical fiber companies have finally obtained the right to have a say in pricing, allowing them to make profits. Why should they share the profits they can get with downstream companies? If the profits are still within a reasonable range, then there is no suspicion of monopoly, and there is no reason for the state to interfere with them and share profits.
In fact, the price of polyester filament is still rising in recent days.
Environmental protection is a “double-edged sword”:
On the one hand, environmental protection regulations are becoming more and more stringent. Small and medium-sized enterprises will be eliminated if they are unable to meet environmental protection requirements. Water-jet loom regulations have also caused a large number of small and micro textile companies to suspend production;
On the other hand, environmental protection, as a “visible hand”, has eliminated a large number of companies that cannot meet standards and has also eliminated a large number of low-end production capacities. For those who can survive The companies that have come down are generally guaranteed, whether in terms of profitability or risk resistance.
Warp knitting enterprises are less pressured by environmental protection, and the local government has not introduced corresponding policies to reduce the number of warp knitting machines. Therefore, there are still many small warp knitting companies, and a large number of warp knitting machines are retained in these small warp knitting companies. This overly fragmented industrial layout is also the biggest reason why the prices of gray fabrics and fabrics cannot rise.
The “shackles” of high inventory
Due to the renovation of water-jet looms, conventional woven fabrics were “hard to find” in the first half of this year. The backlog of inventory over the years has been consumed in large quantities. Today’s woven market is still in a state of “restocking”. ” stage, coupled with the impact of production restriction policies such as “open three times and stop one”, has greatly reduced the production capacity of woven fabrics. According to monitoring data from China Silk City Network, the inventory of weaving enterprises in Shengze area during the same period last year was around 34 days, while today’s inventory is around 28 days.
The warp knitting market is different. Without such an opportunity to “destock”, the overall inventory quantity will be reduced. There are just a lot of them. In addition, the number of orders is small in the off-season. The production and operation of warp knitting companies seem to be “shackled”, and the willingness to start production is not so strong.
Will you lose money if you stop production?
You will definitely lose money if you stop production. At least the depreciation of the machine and the rent of the factory building must be at a loss. If we have to stop production under such circumstances, it only means that if we continue like this, we will lose more than if we stop production. Therefore, this is not a question of loss or loss, but a question of loss or loss.
It is difficult to establish a pricing mechanism
Unlike bulk commodities, fabrics can easily set a standard price. Because of the diversity and particularity of fabrics, even fabrics with uniform specifications will have differences in one way or another, so it is difficult to uniformly price fabric products in the industry.
The author makes a wild claim that industry associations in various regions might as well use the raw material prices of the day to derive a minimum industry guidance price. I wonder if this is feasible.��, at least it can give the terminal weaving industry a higher say in pricing.
Pains of transformation
Baotuan ceases production It’s just temporary. How to better strengthen one’s voice in bargaining is the most important thing. Today’s warp knitting industry is still in the throes of transformation. Small warp knitting companies are walking on thin ice, and the slightest disturbance will cause them to suffer. But this is the case in the manufacturing industry. Now that it has developed to a bottleneck, this situation will occur.
It is foreseeable that this kind of pain will continue in the future. In today’s economic situation, the possibility of raw material costs falling is too low. Only by making good products and taking the pricing power of finished products into our own hands can we fundamentally solve the dilemma.
We hope that textile people can move forward and overcome difficulties. </p
