In July, The Scale Of The Cut-Off Of Weaving Industry Was Over Or Exceeded Last Year. How Should We Go On?

In fact, the rise of raw materials is only one aspect, and more importantly, excess capacity. Over the past two years, the warp knitting industry has been expanding too fast, resulting in excessive supply of some conventional warp knitted fabrics, and some warp knitting enterprises even run at a loss.

Do you feel familiar? Yes, these are all problems that water spray weaving enterprises are facing now.

From the results of the market, the weaving factories in Anhui, Subei and other surrounding areas have already been in the semi start-up state, the start-up rate has dropped to 7, and the Haining warp knitting has not been so fast, and the start-up rate has dropped to 5-6. Even the traditional Jiangsu and Zhejiang textile clusters, some of which are producing conventional products and machines, are still at a stop. Producing or planning to stop production.

However, because the number of weaving enterprises is too large, and further accurate data can not be obtained, we can draw some conclusions from some existing phenomena in the market.

Polyester production and marketing are closely related to terminal weaving. On the one hand, raw materials are needed for weaving, so polyester production and marketing is the most direct embodiment of weaving enterprises' operating rate. On the other hand, it can be learned from the amount of raw materials purchased by the weaving enterprises that generally speaking, if the market is promising and the quantity of orders is adequate, part of the weaving enterprises will buy more raw materials than usual to avoid the risk of raw material price increase.

What about the latest polyester production and marketing? Let's look at a set of polyester production and marketing data monitored by China silk net.

In July 3rd, polyester production and marketing reached 1-2.

In July 4th, polyester production and marketing reached 1-2.

In July 5th, polyester production and sales were still 1-2 percent!

Weaving enterprises generally have two ways to purchase raw materials, one is to buy with them, the other is to buy according to the price fluctuation of raw materials, each has its own advantages.

In the 5 and June most of the time, polyester raw material prices slow down, this time a large number of enterprises choose to buy with the way to buy, polyester production and marketing at this time basically maintained at 4-6, when the good time in 7-8.

Even at the end of 6, polyester production and marketing were ushered in a wave of production and marketing. However, those businesses that continued to buy and use would continue to buy raw materials to maintain production.

The production and sales of 1-2 consecutive days in a few days can not only prove that the weaving bosses are very optimistic about the market outlook, but also obviously lower than the normal raw material demand that needs to maintain the machine started.

Last year The raw material is so crazy that on the one hand, it is caused by buying and selling, but more importantly, the market in the first half of last year is too good, resulting in the inventory of weaving enterprises has been exhausted, there are still new orders on hand, and the fund is in good condition.

Last Monday and Tuesday, PTA kept trading for two consecutive days. According to past practice, the lower reaches should be at the time of catching up, but on Wednesday, after a day of turbulence, the PTA of Thursday Thursday fell sharply.

One of the reasons is that the weaving enterprises are not good at judging the future market, and on the other hand, some of the weaving enterprises' capital chain is very tense now.

The funding chain is tight because of the following reasons:

1, inventory is too high. This is the most direct reason and the most unsolvable cause. Overcapacity, the market does not have such a large demand. Traders' hoarding goods are also hoarding at the lowest price before, and the cloth produced in short time is basically stock.

2, the pressure of receivables. When business is good, cash is ready to be taken for cash, and it is also necessary to consider the relationship. If you want to do it, it will be two months if the business cycle is bad. It will be two months if it is in a long period.

3, foreign investment. Many companies in the outlying areas have invested more in the production of water jet looms. Most of the capital chains are very tight, and hundreds of millions of millions of gold and silver have been put in. Most of them are carrying a lot of pressure on loans.

4, environmental protection, safety supervision and so on. In the past two years, environmental protection and safety supervision have become more and more strict. More and more investment has been made to meet the requirements, but we find fewer complaints. Why? May be used to it.

In such a tight capital chain, the demand for cash will be higher and higher. Although raw materials are cheap now, they still need money. Anyway, the cloth produced will not be sold for half a time, so it can only start down.

Conclusion:

There are indications that the cut-off tide of weaving enterprises in July has indeed arrived. This year's raw material prices will not be as crazy as they were last year, and there is no need for joint production shutdowns, but the scale of production will probably exceed that of last year. This is the inevitable result of overcapacity. I hope all the bosses will be able to support them.