Millions Of Meters Of Grey Cloth Are Piled Up In The Mountains, Weaving And Explosion. In Today's Textile Market, "Eating Noodles" Is Ugly: There Is No Residue Left.

This year, the textile market has seen a rapid decline. The cost of raw materials, labor, water and electricity, rent and dyeing has been rising, and the textile industry has entered a meager profit era. The macroeconomic downturn, the Sino US trade is complicated and the terminal consumption is weak. This year's unusual off-season has doubled the pressure on the textile market. Plus the impact of the peripheral capacity, the textile market is even worse.

Weaving grey cloth burst warehouse! Nearly ten million meters have no place to store.

Recently, during the visit, a weaving manufacturer said, "we broke the warehouse." Nearly ten million meters have no place to store.

This year's market situation is obvious to all, the peak season is not prosperous, the off-season is even lighter. The global economic downturn has given the textile market a heavy blow, but the main reason is the rapid expansion of peripheral capacity. Since last year, many textile enterprises have been running horses and land in Anhui, Northern Jiangsu and other regions. By this year, these new machines have begun to concentrate on releasing capacity, such as volcanic eruptions.

The conventional products in the market are everywhere, and the cake is just like this. The number of people who eat is much, and the share is less. Even some can not eat at all.

The textile industry said: "this year's market is really bad, last year's sales volume is 100%, but this year, although the list continues, it seems that the order maintained until September, it seems pretty good, but we have a lot of weight, jet, water jet looms nearly 1000, at present, the stock has reached 8 9 million meters! Nor dare to start work at random. Once the construction is down, there will be too much trouble. "

On the other hand, the weaving price war is becoming more and more intense. Last year, the gross profit of 1 was also 7 points this year.

When the market was good last year, buyers must take cash to pick up the goods. If you pick up the goods, I will not be able to arrange it for you at once.

But this year, the market began a fierce price war. A cloth for different manufacturers, there are different quotations, buyers are naturally choose the low price of the house, in front of the price, human feelings, friendship may become unimportant. The boss said that the profit of the cloth was 1 Gross last year, but I will do 7 points this year. The most important thing is to get the list. As long as you can keep the business and solve the daily cost of the factory, even if you don't make money, you must do it!

Overcapacity can not be solved at once. Even if there were many reports of shutdowns, production cuts and holidays last month, for the whole market, this is only a small number of cases, and there is still not much change in capacity expansion.

Fabric traders shut down sprinkler sector, tightening production capacity to withstand winter

There are always fabric traders in the middle of weaving manufacturers and clothing brands. During the visit, the company said, "before, 70% of our waterjet products were supplied to clothing brand dealers through fabric traders, but this year the market is not good. The cooperative traders directly cut off the sprinkler department, resulting in a backlog of many of our products."

It is understood that the company has been through traders to fast fashion brands HM, ZARA, UNIQLO, etc., the annual sale of UNIQLO products to reach the amount of several hundred million. But this year, these brands issued orders for the customer "fresh and thin".

This year's foreign trade market is even more difficult. President Trump decided to impose a 10% import tariff on the remaining 300 billion Chinese products from September 1st. Clothing is included in the list of levying tariffs, which will have a decisive impact on the global textile trade, leading to the loss of competitive advantage of Chinese textile exports to the United States, while American importers will also incur increased costs.

According to the customs catalogue, clothing products (61 categories and 62 categories, knitted garments and woven garments) will be subject to a 10% tariff. For example, tariffs on T-shirts imported from the United States increased to 16%. US tariffs on Chinese clothing have disrupted the global apparel supply chain, and American buyers are trying to get rid of their dependence on the Chinese market.

This year, Chinese clothing exporters try to limit the rise in export prices, and textile production needs to be transferred to other countries, which has a great impact on American retailers and brands.

To measure the impact of tariffs, foreign analysis institutions chose women's cotton denim trousers as a case. Its customs tariff is 6204.62.8011., according to the data provided by the US International Trade Commission. Although Vietnam's products grew in the first few months of this year, China is still the largest supplier of the product. Moreover, the increase in Vietnamese numbers may also include some Chinese products illegally transshipped through Vietnam.

According to the current tariff of 16.6%, the tariff of jeans imported from women cotton in the United States in the 1-5 months of this year is 33 million 310 thousand dollars. If a tariff of 10% is added, the total amount of tariffs that the importer will need to pay will reach US $53 million 400 thousand. The average import price will increase from 112.33 US dollars to 121.69 dollars / dozen, up 30%. The price of jeans exported from other exporting countries will only increase by 17-21%.

Before tariffs were added, the prices of Chinese products were lower than most other places. After the tariff was added, the price of Vietnam was 1% lower than that of China, while the tariffs were 8% higher than that of China. Therefore, 10% of tariffs will have a huge impact on Chinese clothing products. If tariffs are further raised to 25%, the global garment trade will be systematically damaged, which is also a heavy blow for domestic textile traders.

The clothing brand has lost its mire and reduced its textile orders.

The clothing market is also being changed by consumer demand, and afraid to increase production. The order of fabrics is also very cautious. Some people say that clothing enterprises do business well, so they can see their inventory and profits.

La Natsu Bell Clothing Co., Ltd. (603157.SS) (6116.HK) released surplus police last week after two. It expects a huge loss of 4.4-5.4 billion in the first half of the year. The loss after deduction is expected to further increase to 4.9-5.9 billion yuan, while the net profit in the middle of 2018 will be 235 million 800 thousand yuan.

La Natsu Bell blamed the loss on the dual impact of the macro environment and its own optimization channels. In the first half of 2019, the company's operating income dropped by more than 20% over the same period. At the same time, the company accelerated the sale of over season products, resulting in a decline in the average gross profit margin of commodities. In the first half of the year, the decrease in corporate expenses failed to offset the decline in gross margin.

On the basis of closing 1616 stores in the first quarter, the company further pushed the total number of stores to 2400 in the first half, a decrease of about 26% from 9269 at the end of last year.

In a quarterly report, in addition to the sports industry, China's major apparel enterprises are showing a downward trend. 002269.SZ has released surplus police in the middle of the month, revising the first half of the year, expecting a medium-term loss of 1.0-1.5 billion yuan, while the previous quarterly loss is expected to be 0-5000 yuan.

On the same day, the Nanjing shoe company also issued an earnings police. It expects the medium-term loss to increase from less than 15 million yuan last year to 5000-54000 yuan.

Statistics from the Bureau of statistics showed that sales of textile and garment enterprises above the limit increased by only 3% in the first half of the year, compared with 620 basis points in 2018. With the advent of the performance period, most garment enterprises are expected to gain profits or even lose money.

Once a garment company is faced with a big shuffle, it can be directly returned to the textile.

The reshuffle of textile enterprises is more and more obvious, and the way to get tickets in the second half is very cruel, but it is also a fact.

To sum up the textile industry in recent years, the word "ice and fire" is appropriate. In 2018, it was still making a lot of money, but in 2019 many of the old textile drivers were lost in the boom and fall.

Xiaobian predicts that the reshuffle of the textile industry has become more evident since the beginning of this year. Enterprises with backward production facilities can not get through environmental protection; enterprises with insufficient innovation ability can not withstand fierce market competition; enterprises with weak capital chain can not support the storm of raw materials. There are too many peers or in 2019 because of various reasons. In the second half of the market, the test will be more violent. The law of survival of the fittest will remain unchanged. Only the fittest survive.

Only by defeating them can the textile industry usher in the spring. Only when the era is driven by the rapid transformation and upgrading can you get tickets for the second half, which is very cruel, but it is also true.