Can The Textile Machinery Enterprises Break Through?

"Basically, 20% of the orders are now postponed.

Reporters interviewed a number of home textile machinery enterprises, and the situation is not much different from Shanxi Hongji company.

Although the textile industry in the first half of this year was affected by monetary tightening and cotton price fluctuations, it was not immediately reflected in textile products.

Cotton price fluctuates.

Years of practice have proved that the textile industry has never been able to get the price of cotton.

In November last year, the price of domestic standard cotton rose to the highest historical price of 33 thousand yuan per ton.

At that time, the price of gauze was also rising synchronously, and most enterprises were catching up with the highest cotton prices.

After March this year, cotton prices and yarn prices fell.

At this time, many enterprises turned into high priced cotton and sold low price yarn.

Before March, the price of 328 cotton was more than 31 million yuan per ton, 2.4 times higher than that in the normal year.

In April, cotton prices plummeted, and fell below the 19800 yuan purchase and storage line stipulated by the state at the end of July.

The so-called "buy up or buy down", cotton prices per day, cotton mills almost dare not buy cotton.

Coupled with the slump in the international market, the increment of cotton yarn and cotton cloth has declined significantly since April.

A thorough investigation by the China Textile Industry Association showed that at the end of May, 50% of the spinning factories under 10 thousand spindles were shut down, and 10%~15% above the designated scale was temporarily suspended.

Now, both textile enterprises and textile machinery enterprises are

But even now that the price of cotton has stabilized, there will not be many new orders for textile machinery enterprises in the fourth quarter of this year.

According to past rules, after entering September, it was the off-season of spinning machine industry, because textile enterprises began to buy cotton because they had money.

Therefore, the sale of cotton spinning equipment will probably become more difficult before the end of the year.

In addition, the knitted apparel, which has been doing well for the past few years, has been left in the cold market this year due to the influence of yarn price, which will inevitably result in the sale of large circular knitting machines.

There will not be a significant downward trend in the market sales of other textile machinery before the end of the year.

In fact, for the textile machinery industry, the most worrying thing is not this year's sales.

In the first half of the year, the sales of textile machinery enterprises were relatively good, and most of the enterprises' orders were full this year.

The worries of textile machinery enterprises are not without reason. We can further analyze the investment in fixed assets this year.

In the month of 1~6 this year, the fixed assets investment in the textile industry reached 290 billion yuan, up 37% over the same period last year.

However, the investment in fixed assets of new projects is negative growth.

This reality will soon appear in the sale of textile machinery, which means that the spinning machine industry has completed the orders in hand, and the subsequent orders will not be available.

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Delay in picking up frequently

Lack of funds is a common phenomenon in textile enterprises.

On the one hand, the incessant growth of production costs has further increased the financial pressure of enterprises, which includes the rise of cotton prices and the large amount of capital occupied by finished product inventory backlog caused by the fluctuation of cotton prices. At the same time, fuel and electricity prices continue to rise and labor prices continue to rise. On the other hand, tight monetary policy has made the small and medium-sized textile enterprises with insufficient funds already add to their losses this year.

For many years, the financing difficulty of the textile industry, especially the small and medium-sized enterprises, which accounts for the overwhelming majority of the textile and garment industry, has not been solved.

Whether it is the daily production and operation, or the expansion of scale, technological upgrading, and lack of funds, all the textile enterprises are struggling.

Since the beginning of this year, the central bank has increased the Reserve interest rate for sixth times in a row, and the deposit reserve ratio of large and medium-sized financial institutions has reached a historical high of 21.5%.

Frequent tightening monetary policy has further increased the financing cost of the industry, and the interest expense has increased significantly.

Among them, cotton textile enterprises are the most seriously affected.

Cotton spinning enterprises often account for more than 70% of the liquidity of cotton, while clothing companies only account for 30% of the funds.

As a result of large capital investment, cotton textile enterprises buy most of their money on loans.

Reporters learned in the interview that many textile companies had to borrow money from banks this year because they could not borrow money in the bank.

The increase in the reserve requirement ratio of bank deposits and loans has also increased the financing interest rate of private credit funds, and private lending is almost 30% higher than that of bank loans.

The money borrowed by textile enterprises is usually used on the "knife edge" to buy cotton to maintain the normal production of the enterprises. Those spinning machines that have already ordered the goods can only be pushed back at the same time, and so on.

Those projects that were originally planned to be implemented will have to be temporarily stranded.

The prepayment of order for spinning machinery enterprises is usually between 30%~50%, and the remaining part is charged when delivery.

If the spinning machine enterprise completes the order on time and the user enterprise delays in picking up the goods, it will undoubtedly increase the inventory and capital consumption of the spinning machinery enterprises.

So, although most spinning machinery companies still hold many orders in the first half of the year, it is still a big question mark whether the order can be delivered after completion.

In order to avoid frequent occurrence of non picking up, spinning machinery enterprises are very cautious at the current stage, and choose "quality orders" as far as possible.

Can monetary policy be loose

"As long as bank loans can relax appropriately, the sales of drawing frames will be very good at the end of this year and the first half of next year."

Like all the drawing frame enterprises, Baocheng Aviation Precision Manufacturing Limited by Share Ltd has been selling very well this year, and orders have been placed in the first half of next year.

But Xue Baochang, the company's general manager, is also worried that their customers will not be able to borrow money and postpone delivery.

Xue Baochang believes that there are gaps in cotton supply and large fluctuations in cotton prices, so that many enterprises naturally reduce the amount of cotton and increase the amount of chemical fiber and viscose. This undoubtedly adds more than one drawing process. At the same time, spinning chemical fiber and viscose make many enterprises choose short flow vortex spinning, vortex spinning directly from the carding to the drawing, which means that the market has a certain demand for drawing frame.

In fact, it is not only the drawing frame, such as blowing carding, compact spinning, long downed spinning machine and warp knitting machine, which have a substantial increase in sales in the first half of this year. These can meet the requirements of automation, continuous, high-speed, intelligent and large capacity of textile and textile enterprises, and meet the textile machinery equipment changing from labor-intensive to technology intensive. Its market rigidity demand potential is still very large. At present, the most critical problem is that the textile enterprises are rich enough to buy equipment.

Is there any possibility of loosening in tight monetary policy in the second half of the year?

Since this year, due to tight monetary policy, not only the development speed of the textile industry has slowed down, but the growth rate of machinery, light industry, building materials, automobiles and other industries has been decreasing since April.

The relevant departments of the state believe that this is precisely the result of the national macroeconomic regulation and control. The relevant departments and economists have always believed that most of our manufacturing industries are extensive, and the state is forcing monetary and fiscal policies to force these so-called overcapacity industries to change their mode of development and speed up structural adjustment.

But recently, for fear of the economic downturn, the market's restatement of monetary policy has risen again. People believe that if this continues, the Chinese economy will have a risk of a hard landing, and suggest that macro-control should be eased appropriately. However, some economists insist that under the background of stabilizing the price is the primary task of macroeconomic regulation, the possibility of monetary policy turning is not great.

In this way, those textile machinery enterprises looking forward to loosening monetary policy should still be psychologically prepared. The days of "bad money" may continue for some time, and the real test may still be in the first half of next year.