In The Off-Season, The Market Was Horrible: The Factory Started To Decline, And The Price Of Polyester Taffeta Dropped By 40% Compared With Last Year.

In recent years, with the sharp fall in futures prices, the impact on textile spot is very large.

According to the director of a cotton enterprise, in July, the company purchased 4 cars in Xinjiang, and futures continued to fall. At the current price, the 4 cars were expected to lose about 200000 of their lint. The helplessness could only wait. If the market remained unchanged in late September, they had to sell meat at the end of the session.

The sharp fall in the futures market is also reflected in the spot market. Hot weather, bad workshops, poor cash flow, and high inventory are all the problems facing the textile industry. After entering the traditional off-season in June, the textile industry has never failed to live up to the "off-season" title. The price of gray fabrics, efficiency, inventory and orders in comparison with the past two years were seen as "visible to the naked eye". Under this condition, looms started to fall to the lowest level after the Spring Festival, and there seemed to be signs of continued downward momentum.

"This year is the worst year" has become the voice of almost the majority of the textile industry.

The start of weaving mills has dropped to the lowest point except the Spring Festival holiday.

As of the end of 7, the combined boot rate of Jiangsu and Zhejiang looms was around 62%, and the percentage of starting up was 15 percentage points lower than that of last month. In July, when the textile industry was in the off-season, the terminal order was weak. The inventory of gray cloth in Jiangsu and Zhejiang accumulated to a new high within two years. Specific to the production base, Shengze area affected by high temperature weather and high inventory, weaving enterprises in the region started to drop larger. Currently, the loom loom in Shengze started near 60%, the air-jet loom was near 70%; the loom loom in Changxin area started at about 8, and the Xiaoshao machine operating rate dropped to 50%.

Warp knitting industry, due to its operation characteristics of warp knitting machine's daily height consumption, results in a significant decline in the efficiency of the fabric inventory and the difficulty of raising prices. In some regions, some of Haining's warp knitting factories started to drop to around 60%, down by more than 10 percentage points from the previous month, and some factories started to work hard at 7 yuan in consideration of the loss of workers. Changshu's warp knitting machine started to 60%-65%.

It is not hard to see that at present, the start up of weaving industry is already low except for the Spring Festival holiday, and the downward trend is still continuing. Compared with the beginning of July 2017 and the beginning of August, the beginning of August and the beginning of August, the 72% of the beginning of the month of August was significantly lower than that of the end of August. The loom start this year has also reflected the downturn of the textile industry, and the "high price" of the textile industry in the past two years has been "kicked out". The first is the overcapacity of the loom. Secondly, the downturn in the terminal garment market and Sino US trade are also exacerbated.

Heat and heat can endure, and cloth can not be sold.

In addition, the boss of the enterprise has called the downstream textile mill because of the cotton in hand, and the bosses of the textile mill are also suffering from water. Since July, some textile mills have started off. Some of the owners who have not had a vacation say that although the temperature has reached the high temperature at this time, the hot summer heat can endure, but the cloth can not be sold. There are more and more stocks, and there is a serious shortage of funds. Although some manufacturers still have some orders, the problem is that the order of many large customers is decreasing year by year.

It is understood that many clothing factories, traders have a certain amount of hoarding goods, woven fabrics can only be placed in warehouse when inventory, after all, there is not such a big demand for orders. In this low season this year, the manufacturers who make market orders are even more bleak. At present, the price of grey cloth in the market is more chaotic. Many manufacturers have the operation of throwing goods in order to return the funds. At this time, traders choose cheaper cloth.

According to statistics, the price of conventional products such as spring Asian spinning and polyester taffeta dropped by more than 40% compared with the same period last year. The price of grey cloth such as four rounds and light spinning decreased by more than 1 yuan / m compared with the same period last year. At present, the whole market is in a state of oversupply.

In addition, this year's refund period is longer than in previous years, mainly because the order is small, the profit is thin, the downstream customers are not well-off, and the repayment time is correspondingly longer. According to the introduction of a textile factory owner: "arrears in the textile industry basically can not be avoided, in the past, when the market is good, the money back is fast, when the market is bad, the money is slow, so we basically clear the accounts in 2-3 months, so that the money will not come back until the end of the year."

For the boss, holidays and production cuts are all helpless. All these are aimed at alleviating the pressure of high inventory and lack of orders. Now we can only hope for the second half of 9 and October. We hope that there will be a wave of prices coming back, stocks will go faster, and the cycle of capital withdrawal will be shorter. (source: China cotton net, Zhuo Chuang chemical)