Everyone familiar with the textile market knows that August is the out-and-out off-season for textiles. The weather is hot this month, so it is reasonable for orders to decrease and the operating rate to drop. But in fact, the recent market situation has both reasonable and unreasonable aspects, that is, the differentiation between weaving and printing and dyeing, one is miserable, and the other is happy.
Continue the off-season and continue production and holidays to the end
“Production has been suspended since June and has not resumed production yet. The inventory is still several million meters.”
“The weather has been too hot recently, and there are still There are environmental inspections and other things, and the factory has been shut down. It is not certain when production will resume.”
“Recently, almost half of the machines in the factory have been stopped, and the inventory It is higher than the same period in previous years.”…
Judging from the situation reported by many weaving companies, during this season and during this period, a 50% reduction in the operating rate will It is reasonable, and even a full holiday is understandable. In the final analysis, this situation arises because of the lack of orders, or the lack of highlight products. Many companies have reported that this year’s order volume has dropped by at least 30% year-on-year, and some have even dropped by 60-70%.
The largest products in the textile market are always those conventional and ubiquitous fabric varieties, such as polyester taffeta, pongee, imitation silk, etc. Due to the shrinkage of overall foreign trade orders in the textile market this year, the supply of these fabrics exceeds demand. Many manufacturers can only compete for these limited orders, and the actual quantity in the hands of each textile person is also very limited.
According to an imitation silk trader, they Sales volume has shrunk particularly sharply this year. There are basically no large orders. They are all sporadic small orders. Orders over a kilometer are rare, and the vast majority are for a few hundred meters. The same is true for other similar companies. Orders of basically two to three kilometers are already at their peak.
For some other unconventional products, although the orders are much better, the quantity is not the same as in previous years.
“The recycled fabrics we are making now are pretty good, and we have received orders of 20,000 to 30,000 meters.”
“Recently, the four-sided bomb has been good, and I have received several orders of 10,000 meters”
…
The order volume of tens of thousands of meters is already the limit for these star products in previous years, and when accepting orders now, we have to bear the losses caused by customers’ bargaining and delays in payment.
Ruthless price reduction, slow payment collection, profit dropped by 50%
The unprecedented textile off-season has put the vast majority of textile workers in a “buyer’s market”. Customers have more options and more say.
The promise of “working together in the same boat” quickly evaporated in the cruel market. Clothing customers are facing market uncertainty and unstable sales, forcing them to look for opportunities to transfer their risks. It is obvious that upstream textile companies are the ultimate “victims” of this risk transfer.
“Customers’ price pressure is still quite serious. Nowadays, many profit issues are not considered when accepting orders. In order to stabilize customers and start work, we usually accept orders as soon as they come. “said a textile company leader.
“Recently, the payment for goods has been relatively slow, usually taking 3-6 months”
“It usually takes 3-6 months for payment to be returned. 2-3 months”
“This year’s payment is about 1 month longer than in previous years.”
……
Under the double blow of price reduction and payment delay, the profits of weaving and trading have fallen sharply. Many weaving companies’ gray fabric sales profits are only a few cents per meter, and many even ship at breakeven or at a loss. It is common for profits to fall by 50% year-on-year. However, unlike the dilemma on the weaving end, the recent printing and dyeing market has shown optimism.
The card pressing queue reappears, dyed Factory orders are full
Recently, dyeing factories have experienced a market situation that is inconsistent with the textile market. There is a rare occurrence of jamming in the off-season. Queuing situation.
“Recently, the orders in the dyeing factory are indeed much better than before, and can even be said to be full. The orders we make in the factory now have to be at least 2. -3 days, the orders in hand suddenly felt a bit overwhelming, and customers kept urging them every day,” said a trader.
According to interviews and surveys, many companies have reported that the order volume of dyeing factories has improved recently. Of course, this situation is mainly related to the “market goods” orders. Only market goods orders have the courage to “raid” the dyeing factory and “seize” every dye vat in a short period of time.
Why do market orders appear intensively in the dyeing factory at this time? One of the big factors should be price. The first is the price of gray fabrics. With the low price of raw materials and the lack of orders from weaving companies, all the gray fabrics on the market haveThere are more or less price cuts in cloth capitals, and some conventional fabrics have even dropped by more than 30%.
There is also the dyeing fee. Although many textile companies have reported that the current dyeing fee price has not been reduced, that is because the order volume of the textile companies is not enough. Impress the dyeing factories and force them to lower their prices to attract customers. Once the order volume is large enough and reaches the market volume, the dyeing fee is negotiable.
Market goods enter the market when various prices are at historically low levels, so it is reasonable to stock up.
Although the textile market is supported by market goods, the customers, order volume and fabric types of market goods are limited after all, and it is difficult to leverage the entire textile market. Therefore, the weaving side has not yet enjoyed this wave of dividends and is still facing bleak market conditions. Suspending production and taking holidays is the only option.
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