Water Jet Looms Sales Maintain High Growth Filament Weaving Market Fear "Crash"

Recently, the China Textile Machinery Association released a report on the market of textile machinery in the first quarter of 2019. The report pointed out that although faced with the complex international economic situation and the Spring Festival holidays, the report was released.

However, in the overall stable environment of the national economy and the textile industry, the textile machinery industry started to meet expectations. In the first quarter, the operating income and profits of the above scale spinning machinery enterprises reached two digit growth, and the export of textile machinery products remained stable, showing a slight growth trend. 2019 1~3 textile machinery industry above designated size enterprises achieved operating income of 22 billion 982 million yuan, an increase of 14.57% over the same period.

In the first quarter of 2019, the different segments of the textile machinery industry showed different operating conditions. The sales of most of the products of the spinning machinery showed different ranges of growth; the jet looms in weaving machinery maintained a high growth trend last year; sales of rapier looms continued to decline; the sales of circular knitting machines in knitting machines increased steadily; the overall market situation of warp knitting machines dropped; printing and dyeing and finishing machinery maintained the development trend of last year; the sales of chemical fiber machinery decreased slightly; the nonwoven machinery market did not recover significantly.

And the sales of water jet looms still maintained a high growth rate last year. This is not a dangerous signal for the Jiangsu and Zhejiang silk weaving Market, which is short of orders and high inventory.

Why is the sale of loom looms still crazy in the first quarter when the weaving Market deteriorates?

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All of them show that the textile industry is very difficult this year. Weaving factories are hard to sell, purchase enthusiasm is hard to shake, and polyester production and marketing are lingering low for a long time. Even the traditional golden three silver four peak season, because of the market's bleak and early conclusion, to the mid and late April, the weaving market basically can not feel the smell of the peak season, and to the so-called "red May", May is really there, the prosperous business has not waited, this cold and cheerless continued to June, even more.

But when the market is cold and clear, the stock prices are high. Many manufacturers will choose to buy the market through the way of price reduction promotion. At this time, it is often a time when price war is raging in full swing. Although the price war will inevitably kill one thousand of the enemy, eight hundred will be lost, but in order to seize the source of tourists and maintain their market share, many textile bosses will resolutely join the battle field when necessary.

But even more brutal, even though this is the case, the market is still worrying about high inventory, with very few orders, and few customers. Scattered orders can still be done. Large orders can hardly be met.

The reduction of market orders is partly due to the fact that the prices of both manufacturers and traders are already low. Through market visits and research, some manufacturers even say that they are already in the state of cost line operation, and some even say they are in a state of loss.

This is not only aimed at weaving enterprises in Jiangsu and Zhejiang provinces, but also worse in recent years. At present, these external expansion capacity is still being released. By this year, the impact of external expansion capacity has become particularly evident. Because of the periodic production capacity and the poor business in the market, the land and buildings that were sold to the central and western enterprises in the early stage have just been built or are being discharged.

Therefore, they are bound to take the rapid return of funds as the top priority. At present, they are at a stage where they can't ride a tiger. They can only put their heads to the stage of production.

Spray production capacity is from excess to elimination. What kind of situation will the market face next?

First, Jiangsu and Zhejiang stock reaches its peak, and the terminal is extremely cautious.

At present, the weaving inventory in Jiangsu and Zhejiang has reached a historical high of nearly four years.

The scale of weaving mills in the field is generally relatively large, and the number of machines is basically hundreds or even thousands. However, restricted by the Midwest, there is no complete industrial chain system and imperfect sales channels. Therefore, these products will eventually return to the coastal areas. Under the condition of poor sales, local inventory will be backlog again, and terminals will also be shifted from cautious attitude to extreme caution. Therefore, exploratory small bills will become more apparent, and the phenomenon of large single spanactions will be reduced significantly.

Two, price war intensified.

Because looms mainly produce low-end products, such as polyester taffy and spring Asian spun yarn, the same quality grey cloth comes from North Jiangsu, Hubei, Anhui and so on. The freight rate is 3-5 cents per meter, but the price is 2 yuan cheaper than the local one.

Therefore, a new round of price war in the market will become more intense if the cost of foreign fabric is lower than that of the local market.

Three, the market fear "crash", the phenomenon of closure will be concentrated in the second half.

At present, the supply of low-end fabric has been saturated, production capacity is continuing, and the market crash coefficient is increasing. The phenomenon of enterprise failure will be concentrated in the second half of the year, and the first one that detonates the fuse will be the weaving enterprise that is putting into operation in the Midwest.

In the future, the capacity to spanfer the central and western regions is still going on and on, and in the future, it will be a fuse for a worse environment. The road ahead will be even more difficult to face in the face of the enormous pain of overcapacity.