Yesterday, China Oriental Silk Market, one of the largest textile clusters in the country, officially resumed operations. Many companies have received notices to resume work, their stores have basically opened, and factories are making preparations in an orderly manner.
A few days ago, companies were worried about being fully prepared to apply for resumption of work, and after receiving After the resumption notice, there are still a lot of troubles to face.
1
The lack of workers is still the main reason why it is difficult to increase production capacity
As a cliché, the most important thing for resuming work is of course whether all workers can be present. In weaving factories, the vast majority are foreigners. During the visit, it was found that companies with mainly local employees had basically all arrived on the 21st, and the operating rate before March could increase to over 90%. However, companies that mainly employ migrant workers have said that they are more likely to resume production capacity in early March, especially the absence of skilled workers, which will have a greater impact on the company.
The person in charge of a finishing company said that the possibility of starting work in February is still low, especially since the technical personnel in the main positions are immigrants and have not returned to Shengze. Even if you return, you will have to be quarantined for 14 days, which will have a great impact on the business. Under the current circumstances, re-recruitment may not be able to recruit corresponding local personnel, and the recruitment problem is still a “long-standing difficulty.”
2
Logistics has gradually resumed, but the delivery date of the dyeing factory is unknown
Currently, logistics across the country is gradually recovering. It is reported that the national express delivery industry has returned to more than 40% of normal production capacity. Some cloth bosses who have delayed shipments due to the epidemic have shipped the first shipment of the new year in the past few days.
Many customers who have resumed work early have begun to rush for goods, so the gradual resumption of logistics has solved the urgent needs of many companies. However, judging from the current market conditions, only white blanks can be shipped, and all orders requiring dyeing and finishing are still backlogged. Dyeing factories in Jiaxing, Wujiang, Shaoxing and other places are still in the slow recovery stage due to lack of workers and insufficient operating rates. The restored dyeing factories are also very deserted, and there is even only one person dyeing. This is in sharp contrast to the current situation of dyeing factories at this time in previous years. .
The shortage of workers in the dyeing factory naturally leads to the extension of the delivery cycle. In fact, judging from the current situation, dyeing factories basically focus on dyeing, and the shipment volume is very small. It can be said that the delivery date is unknown.
3
Raw materials continue to fall in price, and procurement is still based on rigid demand
For weaving companies, in addition to personnel, it is orders and raw materials. To produce, you need raw materials.
On the first day of market resumption, the transaction volume of polyester filament in Jiangsu and Zhejiang regions was light, with production and sales accounting for only about 20%. It can be seen that the market demand for raw materials is as expected – low!
In 2019, when it comes to raw materials, companies’ measures are basically based on rigid needs and will not hoard more. On the one hand, the market situation in 2019 has been hailed as the “worst year”. Enterprise inventories are high, orders are difficult to receive, and there is not much money to purchase raw materials. The money that can be turned over will be allocated reasonably, and eggs will not be put in the same place. In the basket; on the other hand, the price of polyester filament has been in a downward trend in 2019, even reaching a low level for many years. The cost fluctuates constantly. Fabric bosses have naturally lost confidence in this. The kind of “buy up, not buy down” Psychology failed last year.
Due to the outbreak of the epidemic this year, downstream weaving The resumption of work by manufacturers continues to be delayed, while upstream polyester manufacturers continue to produce polyester filament, which has no market, and has begun to decline in recent times. Among them, FDY products have dropped by about 300 yuan/ton compared with the previous year, POY products have dropped by about 120 yuan/ton compared with the previous year, and DTY products have dropped by about 200 yuan/ton compared with the previous year.
The market is unknown and raw materials continue to In the form of falling prices, even if logistics affects the supply of raw materials in the short term, the current operating rate of weaving mills is insufficient. In addition, the volume has been accumulated for about 1-2 months a year ago, and the current procurement of raw materials by cloth bosses is still ” The word “rigorously needed”!
“We still operate according to orders for raw materials, and we will not store a lot of them during this period.”
“The overall production is not high now, so for The demand for raw materials is also limited.”
“We will not increase purchases, but will still focus on rigid needs.”
The market is gradually recovering. , for weaving enterprises, personnel are still the key. As long as outsiders safely pass the isolation period, they can return to work as scheduled. When all personnel come together, the market can slowly start to move. In terms of raw materials, excessive inventory will inevitably causeAlthough the price of raw materials has dropped, the price of raw materials itself is already at a low level. Personally, I think there is still room for a rebound.
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