Since May, I have been hearing news that the textile market is slowly recovering. Domestic orders have begun to increase significantly, and inquiries about foreign trade have also begun. The price is high, but the textile companies are tens of millions, the fish pond is so big, and there are not many fish. Has everyone received the order?
Low-price competition, seemingly considerable order volume is actually in vain
A textile boss once told the editor: “Last week, SPH broke the card and ushered in a wave of retaliatory rebound. Many companies have received orders, but I have not received them.” According to this textile boss It turns out that there are not as many companies taking orders as expected, and there are still many companies that have no orders to weave.
“The domestic demand market has begun to recover, and orders have begun to increase. However, there are too many manufacturers, and everyone is bidding for market orders. Whoever offers the lowest price will get it. Orders can be made,” said Mr. Zhang, who owns 500 looms.
Indeed, although the textile market has gradually begun to recover, However, the problem of insufficient demand is still quite difficult. When the market is good, not all companies have large orders. Let alone the current situation, the market competition is very fierce, supply exceeds demand, and textile bosses are competing for orders, making little money. It’s better than making no money at all.
After May, more than one textile boss complained to the editor: The market is very chaotic now!
It is understood that although domestic demand orders are gradually increasing, many textile bosses still say that there are not many orders on hand, or even no orders. They are all in the hands of textile bosses who quote prices so low that they exceed the market price. “We still haven’t received orders. From March to now, the order volume has been very few. Although the domestic demand market is picking up, after all, recovery takes time, and it still cannot be compared with the previous order volume. If there are no orders yet, , we may consider continuing to reduce production or suspend production.” A textile boss said helplessly. According to data monitoring from Silkdu.com, as of May 23, the operating rate of enterprise looms has rebounded to 75%. Although it has increased compared with the previous period, it shows that the market has indeed improved, but May is not as good as in previous years. It can be said that the market is in a fair stage, but the current operating rate is slightly insufficient compared with the off-season in previous years. This shows that many textile bosses are still relying on reducing operating rates and production to maintain normal operation of factories.
According to the current situation, there is still Many textile bosses are still facing the dilemma of having no orders to weave. In order to keep the factory going, they are still reducing production, but they are still reluctant to stop the factory and can only keep weaving inventory.
1 million meters of inventory sold at low prices: originally priced at 2.8, now only sold for 2 yuan
The old problems that have always existed in the textile market are: overcapacity and insufficient demand. Now the old problems have encountered new troubles. The impact of the epidemic directly caused domestic demand to stagnate in the first quarter. According to data monitoring from Silkdu.com It shows that corporate inventories soared to a high of 43.5 days from early March to mid-to-late April, breaking the historical high in the past two years. However, from the end of April to now, the number of inventory days has begun to show a significant downward trend. Among them, Chun Yafang, The popularity of polyester taffeta on the grounds that it can be used as protective clothing has a lot to do with it.
Faced with such high inventory days, selling inventory at a loss has become the norm in the textile market. “Single-hole silk rayon used to sell for 2.8 yuan/meter, and there was too much inventory in the warehouse. Some time ago, I sold 1 million meters at a low price of 2 yuan/meter. I was really distressed. I lost money at this price, but I was anxious because I couldn’t sell the inventory, so I had to sell it at a low price. Although I lost money, I still lost money. At least I have money coming in, so I won’t be strapped for funds,” said a textile boss in Shengze area.
Seeing this, people who don’t know the price will definitely think that this textile boss’s business is very good. If it were not now, 1 million meters would be the same. It was a very large order, but after seeing the price, who would say that the textile boss made money? Looking at the piles of inventory at home, which textile boss is not under great pressure, so who really understands the bitterness behind the textile boss?
If some people eat meat, then some people must also drink soup. , the textile industry is now in a saturated state. Whether it is industry and trade or trade alone, it is not an exaggeration to roughly count tens of thousands of companies in Jiangsu and Zhejiang. The already oversaturated textile industry is under the impression of the epidemic this year. The demand can really Meet most textile people?
Faced with this question, the answer now is of course: No
Although textile The market has begun to gradually recover, but according to the current situation, this recovery is only superficial and can only last for a period of time. The real recovery may not have come yet, but the signs of recovery have been seen, and perhaps the real recovery will come in late August. ground recovery.
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