Shaoxing Textile Fabrics

Face Cotton price The main impact is mainly on export oriented fabric enterprises and upstream businesses. Cotton yarn Manufacturing enterprises. However, the domestic fabrics enterprises, which mainly supply fabric for domestic brand clothing enterprises, are not affected very much.

　　 Shaoxing It is the most famous spinning in China. Woven garment One of the industrial clusters is mainly exported to Europe, the Middle East, Japan and other countries and regions. The situation of Shaoxing fabric enterprises is a microcosm of the whole industry.

Gray cloth and other materials push up profits

The most direct impact of cotton yarn price increase on fabric enterprises is the substantial increase in the price demanded for the fabric.

Before the first ten days of July, the price of grey cloth was relatively normal. Taking the 24 * 24 * 7260 specifications of pure cotton grey cloth as an example, the price at that time was about 5 yuan / m, and the price rose to around 5.8 yuan per meter in August. In late August, it fell back to about 5.5 yuan / m, and it began to soar from mid September. The price at the end of October has risen to 6.5~6.8 yuan / m, up to 30%~36% before July. It is continuing to rise.

Lu Senbiao, general manager of Zhaofeng Knitting Fabric Co., Ltd., Shaoxing, lamented, "we are the biggest victims." Zhang Guoping, a textile purchasing agent of Shenzhen ocean textile company, also sighed, "if the cotton price rises again, the enterprises really can not afford it, and we have no way to do it."

When the price of cotton is crazy, many enterprises that produce cotton fabrics mainly use chemical fiber instead of cotton cloth. As a result, the price of chemical fiber raw materials has increased, and polyester, viscose and other raw materials have risen to varying degrees this year. The increase is relative to cotton price and is still within the scope of the business.

Taking viscose staple as an example, according to "China Keqiao textile index" monitoring, the mainstream quotation of viscose staple fiber 1.5D market in March 8th was about 19900 yuan / ton, and the mainstream quotation in March 12th was about 20100~20200 yuan / ton. By October 18th, the mainstream quotation of the market has risen to 22500~22600 yuan left right / ton, the market price of viscose staple fiber in October 20th has risen by 500 yuan / ton, the mainstream quotation of 1.5D market is about 23000~23200 yuan / ton, and it is expected to rise to 25000 yuan / ton at the end of November. In the past 8 months, prices have risen by 16.6%.

Zhang Guoping was deeply impressed by this. What made him feel most obvious was that when he placed orders for the chemical fiber fabric factory, the general price increase reached 2 yuan / meter. In May, he saw a fabric in a fabric factory at a price of 17 yuan / meter, and the price rose to 19 yuan / meter at the time of real order. "This makes it difficult for us to operate." He said.

One day, cotton prices are very unstable, causing the price inflation of related raw materials, which makes the price of all kinds of products on the industrial chain such as grey cloth and fabrics can not be stabilized. The turbulence and instability of this market situation have squeezed the profit margins of the fabric companies.

If an enterprise quotes a fabric for a customer in October 20th is 5 yuan / m, when the customer takes delivery 1 months later, it is likely that the actual price of cotton should be 5.5 yuan / meter in order to make profits, but the customer still pays 5 yuan / meter according to the contract price.

As a result, the profits of the fabric enterprises will be lost. Such losses can only be borne by enterprises themselves. As for raising prices, that is the next business that can be realized.

Companies dare not quote and order easily.

The skyrocketing cotton prices and volatile markets have made many enterprises appear to be reluctant to make quotations even when customers ask. Enterprises generally reflect that when customers look at a fabric asking price, they dare not quote easily, because it is impossible to judge how much the price will rise to customers in a few days. Even if orders are placed, they are often dominated by short lists.

Zhejiang red and blue textile printing and dyeing Co., Ltd. produces more than 80% of its products exported to Europe and the Middle East. Although the printed fabrics are made of pure cotton and are mainstream, there are still some cotton products in the products. "Although it has little impact in general, it still has some effect." Huang Xinming, deputy general manager of Zhejiang red and blue textile printing and dyeing Co., Ltd. analyzed.

Red, green and blue need to buy gray cloth to the upstream manufacturers. The price of the grey cloth is unstable. The price fluctuates very much almost every day, so sometimes even if there is money in hand, the supply of goods will not be available.

In this way, the pure cotton orders of new customers are not green and blue, but a wait-and-see attitude. It's just some old customers' orders. Huang Xinming said that the order of pure cotton will not be accepted. In the face of crazy cotton prices, red and blue would rather give up this piece.

Similarly, at the Keqiao autumn Expo held on ~28 October 25th, a Middle East customer wanted to purchase about 600 meters of fabric for 50 people to make clothes. Considering that the market is unstable and the order is too small, Zhejiang Bao textile printing and dyeing Co., Ltd. had to give up the order.

Lu Senbiao, general manager of Shaoxing County Zhaofeng Fabric Co., Ltd., which is part of the production of garments and uses velvet fabrics, also said that if cotton continues to go crazy like this, it is very likely that enterprises will give up the business of velvet fabric. {page_break}

Cotton fabric and cotton yarn enterprises reduce production and stop production

Cotton price is "Crazy", and the biggest trauma is the small businesses that are mainly made of pure cotton, including fabric enterprises and cotton yarn production enterprises.

A small local fabric manufacturer located in Shaoxing is a professional cotton supplier. Its products are mainly exported to India, Iran and other Middle East areas.

In October last year, its business was very hot, its orders were quite sufficient, and the products were shipped away from the whole cabinet. But in October this year, there was no reduction in the number of customers, and the demand of these foreign customers did not decrease.

Last year, when the business was hot, its merchandiser's business was very large. At the end of a month, basically no one was seen in the company, and they went out to do the merchandising. But this year, the merchandiser obviously relaxed and stayed in the company all day. When the business was good, there were about 23 employees in the company. But with the soaring cotton prices, the business department, printing and dyeing department, production department and so on were left behind, leaving only a dozen people left.

Last year, when the business was hot, all the machines in the enterprise were working and working overtime, hoping to add some new machines. But in October this year, the factory was still the factory, and the machines were still those machines, but the whole factory was cold, and the machines stopped there without any thunder.

Last year, when the business was hot, the enterprise had about more than 20 orders per month, but this year, it has been very good to walk seven or eight bills a month in the first 10 months. At present, the company is in a state of shutdown.

This enterprise's experience is not a case. It is understood that many small cotton fabric enterprises have similar experiences. Moreover, in Jiangsu and Zhejiang provinces, many small cotton yarns are not doing business at present. Because they are unable to afford such a crazy price increase, and even if they are made of grey cloth, they will not be able to sell according to their expectations.

"Stop doing business, this phenomenon is just too normal now." A person in charge of enterprise regrets.

According to a number of enterprises, due to the soaring cotton prices after the "eleven" holiday, many small cotton yarn producers or small fabric enterprises in Jiangsu and Zhejiang provinces have extended their holidays, and have cut down their production or even stopped production. Even large fabric enterprises or cotton yarn enterprises have cut production.

Moderate and timely increase of fabric price

Cost rises, and the price of finished products is also moderately adjusted. This is the most direct measure taken by many enterprises for the soaring cotton prices.

In January of this year, when the price of cotton yarn was about 24000 yuan / ton, the Zhaofeng fabric Limited company raised its price once, the price of its velvet fabric was raised to 22 yuan / meter; in May, it adjusted its price for second times, the price of velvet fabric was raised to 23.5 yuan per meter, and in September 15th, in the face of cotton price rising, it adjusted third times to 25.5 yuan per meter.

Lu Senbiao, general manager of Zhaofeng Knitting Fabric Co., Ltd. of Shaoxing County, revealed that in November, the price of the velvet fabric produced by mega would be raised again, about 27.5 yuan / metre.

From about 22 yuan / meter to 27.5 yuan / meter, the price of velvet fabric has been raised by 5.5 yuan per meter, and the price increase has been 25%. Although this kind of price increase can reduce the loss of enterprise profits to a certain extent, it is obvious that it is lower than the increase of cotton yarn price by 70% in 9 months.

According to Lucent standard, if the cotton price is increased by 70%, the price of velvet fabric should at least rise by about 8 yuan per meter, but at present, it has only risen 3.5 yuan -5.5 yuan / meter, and the rest of the fabric has been given profits to customers.

However, it needs to be explained that the increase in prices for downstream customers needs a period to accommodate customers, and can not raise prices at a high price, so customers can not accept them. Moreover, for those orders that have been signed before and priced, the price can not be raised. This part of the loss can only be borne by the enterprise itself. As for the next increase, it can only be said when the next business arrives. "The market is like this, enterprises can only follow the market." The buyer of a fabric enterprise sighed with emotion.

Part of products are converted into chemical fiber raw materials.

In order to offset the cost increase caused by the rise in cotton prices, many fabric enterprises have also taken another important countermeasure -- raw material conversion, the original pure cotton fabric, some or even all of them are converted to chemical fiber fabrics, such as viscose, polyester and so on.

Shaoxing Zhaofeng Textile Co., Ltd. mainly produces velvet fabrics for decorations, such as hotel materials, sofa fabrics, etc., and also produces some velvet fabrics. The products are exported to Europe and the United States, with a small number of Middle East customers. They want to buy cotton yarn upstream.

According to Lu Senbiao, general manager of Shaoxing Zhaofeng Knitting Fabric Co., Ltd., according to the actual market situation, we are thinking of changing cotton fabric into chemical fiber cloth. At present, the company has just developed a TC (65% polyester, 35% cotton) velvet fabric. At the same time, we also consider the development of all polyester velvet fabrics.

In this way, we can appropriately reduce the pressure of rising cost of raw materials, and we can also increase profits. Because the additional value of other chemical fiber pile fabrics is higher than that of cotton, for example, the price of TC pile fabric is about 30 yuan -35 yuan / meter, and the price of all polyester velvet fabric is about 19 yuan -20 yuan / meter.

And in the market of the mass adornment material market, enterprises may be forced to give up, even if they do not give up, they must be converted into all polyester fabrics. However, the all polyester velvet fabric is still in the stage of popularization at present, and further attempts are needed. Of course, raw material conversion also has certain challenges for enterprises. Compared with cotton, all polyester flannelette fabric has higher requirements for dyeing process, cotton fabric can be dyed at room temperature and atmospheric pressure, and polyester cloth needs high temperature dyeing.

Nevertheless, he predicted that in the next two or three months, the demand and quantity of all polyester fabric will be very large, mainly for American customers.

Another textile enterprise has taken the same countermeasures. The buyer of the company recalled that the soaring cotton prices reminded him of the rise in silk prices before. From the beginning of the year, the price of silk fabrics has risen all the way. The price of silk fabric before 19 yuan is about 40 yuan / meter, and now it has risen to 50 yuan / meter. The increase in the price of more than ten yuan per meter has made the company no longer buy silk fabrics, but instead of silk, silk and other fabrics. This time, cotton prices were soaring, and the raw materials used before it gradually changed to raw materials such as blending.

"10 x 1" conversion can reduce profits but guarantee profits.

Some small fabric enterprises or cotton yarn enterprises can not do a big business under such an optimistic macroeconomic trend, but in order to maintain the factory operation, we must maintain the normal operation of the machine. At this time, we have taken measures to reduce production.

In the process of production reduction, there are some skills. Some enterprises still can maintain profits by reducing production.

The price of cotton yarn or grey cloth rises day by day, and the price on the order is determined as long as the contract has been agreed. It is possible that the purchase of new raw materials to complete the order is likely to mean a significant reduction in profits. At this time, many enterprises no longer buy new materials, but use stock materials in warehouses to complete the established orders.

It is understood that in the area of Jiangsu and Zhejiang, there are at least 5 months of raw materials in the warehouse of many enterprises. So if the stock is enough, we can try to use the following measures.

For example, before an increase in price, a company produces 30 cotton yarn, producing 10 tons per day, making 1000 yuan per ton, and earning 10 thousand yuan per ton of 10 tons. After the price rises, when the production needs to be reduced and the machine can run normally, the enterprise can produce 80 cotton yarn, and the daily output is reduced to the original 1/10 of 1 tons, but at this time, the profit per ton of cotton yarn can be increased to 10 thousand yuan.

In this way, although the output has been reduced, the profit has not been reduced, and the normal operation of the machine has been maintained.

Moreover, the next few months will be near the Spring Festival, but the production will not be reduced, but the workers will not have to work overtime during the Spring Festival. In such a state, it is still no problem for the enterprise to run the cotton yarn or grey cloth in the warehouse for several months.

Accelerate the development of high value-added products

The rising cost of raw materials has increasingly challenged the cost and price competitiveness of export fabric enterprises. Some enterprises have chosen the most fundamental solution, that is, jump out of the "Red Sea" of cost competition, improve the capability of independent research and development of enterprises, and accelerate the development of innovative products with independent innovation and higher added value, so as to enhance the profits of enterprises.

Textile printing and dyeing has chosen the way to increase the added value of products. Take a gilded fabric product as an example: the sale price of an ordinary printing and dyeing fabric produced by Bao textile printing and dyeing is about 1.16 dollars per meter, while the price of the gold stamping product is 1.44 US dollars -1.6 US dollars / meter, so that the profit per meter fabric can be increased by US $0.4 -0.5 US dollars.

Mega flannel fabrics Company Limited has begun to adjust its product structure accordingly. In fact, since the financial crisis, the product structure of Zhaofeng Textiles Limited has been adjusted. Before that, the proportion of public goods was 70%, and fine products only accounted for about 30%, but at present, this proportion has turned upside down, and fine products can account for 70% of the proportion. Generally speaking, the profit margins of boutique decoration fabrics are much higher than that of many ornaments. Lu Senbiao, general manager of Zhaofeng Knitting Fabric Co., Ltd. of Shaoxing County, said that if the raw materials continue to rise in price, it will probably only produce fine decoration fabrics in the future.

By changing the pattern and increasing the design content, the enterprise can raise the price of the product and increase the profit space, so that the price of raw materials can be partially digested.

In addition, in order to increase the added value, Zhaofeng Textile Co., Ltd. is still trying to enter into the finished product production from fabric production and get involved in the design, production and sale of finished bedding. The company hired famous designers who lived in Hangzhou for years to design and develop bedding products. First, the finished products were tested and put on sale in chain stores selling curtains and fabrics in Jiangsu and Zhejiang provinces. In the future, if the time is ripe, it may export directly to the European and American customers the finished products, so the profits will be greatly improved.