“We have had a lot of orders recently, and we have to ship three trucks of four-sided bombs every day. Because the quantity is relatively large, various prices are easier to negotiate. For example, 50D four-sided bomb gray fabric only costs 1.35 yuan/meter, and the dyeing fee is even higher. It is as cheap as 0.8 yuan/meter.” said a person in charge of a textile company.
Everyone familiar with the textile market knows that the recent textile market is dominated by market orders. The textile people around you may tell you that they don’t have many big orders, but in fact, the dyeing factory is crowded with orders of all kinds. Because these orders come from “market orders”, not every textile company can receive such orders. Those that can receive such orders have quantities of hundreds of thousands or millions of meters.
No matter how low the fabric price is, weaving mills are still happy to see it
Although the market volume is huge, the price is so low that it breaks through the bottom line. Taking 50D four-sided elastic as an example, it normally costs more than 2 yuan/meter. Even if some weaving factories sell goods at low prices to clear inventory, the price is generally around 1.7 yuan/meter. The gap is even greater in terms of dyeing fees. The dyeing fee of 0.8 yuan/meter is acceptable for polyester taffeta products, while the four-sided elastic with complicated production technology is basically more than 2 yuan/meter. But even though the price of gray fabrics and dyeing fees have dropped significantly, companies that can receive such orders are still happy to do so, and they don’t feel at all like they are being taken advantage of.
The first reason why this phenomenon occurs is the strong ability of market orders to sell goods. The general customers of weaving companies receive orders and then go to the weaving factory to transfer goods. Not only is the quantity generally limited, but more importantly, the delivery cycle is very long. Even if the weaving mill is in urgent need of capital turnover and sells the gray fabric to the processed cloth market at a low price, the processed cloth dealer will still need to have certain customer demand before stocking up in large quantities. The “market order” customers are very different. They have a clear eye on the market, and they will make large purchases and desperately stock up on a certain product or a few products in large quantities.
This is definitely good news for weaving factories. After all, there has been a lack of hot-selling products in the market throughout the year, and most manufacturers are busy stocking up. The market goods are all conventional varieties, and their large quantities are of great help in digesting inventory. The situation is similar in dyeing factories.
Even if the dyeing fee is cut in half, the dyeing factory will still make a profit
In fact, not everyone in the market currently While any dyeing factory can be flooded with orders, many dyeing factories are still continuing their early off-season. The difference between the two lies in whether they have received a large number of market orders. Although the market price is not even half of the normal dyeing fee, the dyeing factory is still profitable even so.
Although the production costs of a dyeing factory mainly include various expenses such as rent, water and electricity, labor, environmental protection, etc., in fact, the costs caused by dyeing failure cannot be ignored. Normally, if it succeeds once, the cost is 100%, the production capacity is 100%, and the profit is 100%; if the color is stripped and re-dyed, the cost is 250%, the production capacity is 45%, and the profit is -300%; if the color is changed and re-dyed, the cost is 110%, and the production capacity is 110%. 80%, profit 70%.
Conventional knitted fabric dyeing benefit analysis uses one dyeing as the benchmark for rough statistics , for every 1% increase in the first-time success rate of dyeing, the production cost can be reduced by 1%; for every 1% increase in the first-time success rate of dyeing, the income per kilogram of dyed fabric produced can increase by about 10%. The quality and color requirements of market orders are relatively low, and dyeing factories basically do not have the risk of printing and dyeing failure and re-coloring. 100% success will inevitably significantly reduce dyeing factory costs and increase profits. At the same time, the large number of individual varieties and colors of market products can ensure that the production capacity of each production link of the dyeing factory is utilized to the maximum extent, and it also reduces production costs invisibly.
The low-priced market orders may impact next year Market
Although this time of year is the stage for market orders, the placement of market orders this year seems to be little different from previous years. However, the textile market during the epidemic is bound to undergo some changes, and the same is true for market orders.
First of all, the preparation time and products are too concentrated. Normally, market orders will appear at several points in time every year, both in the first half of the year and in the second half of the year. However, this year due to the epidemic, market confidence is insufficient, and the basic stocking is only obvious in the near future. In addition, next year’s spring and summer fabrics are indispensable in the stocking up during this time in previous years, and it can even be said that they account for the majority. However, this year’s autumn and winter fabrics are all available, and the stockings are all geared to the market in the second half of next year.
In addition, the quality of market products is not as bad as imagined. When it comes to market orders, they usually have low requirements and poor quality, but this year it is not necessarily the case. In previous years, the sources of gray fabrics listed on the market were generally specially produced by manufacturers or leftovers picked up by others, and they had defects in raw materials or fabrics. But this year, due to the low price of raw materials and high inventory in weaving mills, market orders can be easily obtained with normal quality but at extremely low prices.� Fabrics, that is to say, problems with gray fabrics can basically be avoided. As for dyeing factories, large-scale continuous production of a single variety and color will inevitably ensure stable process and color, and the quality will not be much worse.
Market orders will be concentrated in the autumn and winter markets in the second half of next year, which will inevitably squeeze the original market. And the fabric price this year is definitely much lower than that in the second half of next year. If coupled with the good quality of these single fabrics in the market, it may be “even worse” for the autumn and winter fabric manufacturers in the second half of next year.
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