2019 Off-Season Grey Cloth Market: Chiffon Beads Price Drop Nearly 11%, Jet Loom Profit Is Only 10 Yuan / Taiwan.

From 2016 to the first half of 2018, the textile market was really "Crazy" by a series of factors, such as the textile market boom cycle, environmental protection and production capacity reduction. During this period, the most outstanding performance is the grey cloth manufacturer, from the "arrears" to "advance payment, queuing and other goods", the degree of popularity has become the most in the calendar year. In particular, conventional products such as polyester taffy, spring Asian spinning, and nylon spinning have not only cleared the inventory of grey cloth in previous years, but also made goods such as picking up goods or queuing up to become a normal market.

However, since the second half of 2018, the "good" days of grey fabric manufacturers have been gradually suppressed. Especially since this year, the grey fabric manufacturers seem to be "returning to pre liberation", facing a series of pressure, such as profit compression, high inventory and deprivation of discourse power.

First, generation processing lacks autonomy, and only processing fees are earned.

Because of the relatively low overall textile market this year, some small and medium-sized grey fabric producers will choose to manufacture some large weaving factories or traders based on their own capital and inventory considerations.

A company with nearly 100 looms and weaving machines indicates that if the processing is done, the grey fabric producers and the weaving factories and trade partners will sign the cooperation agreement ahead of time. If the price of raw materials rises to a certain extent, the trade association will have some allowance for the grey fabric producers. But accordingly, if the price of raw materials falls sharply during this period, the producers of grey fabrics also have to give up the profits to the traders. Although it safeguards the interests of gray fabric producers to some extent, it also limits its profit space. Ultimately, it can only maintain normal operation by earning processing fees, and lacks certain autonomy. Product pricing and sales target are relatively fixed, so it is difficult to expand.

Two, the production of gray cloth direct sales, capital and inventory risk increased

Of course, more grey fabric producers in the market will choose to produce grey cloth, sell them directly to local or foreign traders, and sell some products themselves. In this way, although we seize the initiative, there are many risks in the middle, such as quality, capital and inventory.

When the "daily gain and gold, one product is hard to find" has become the past tense, the grey cloth manufacturer lacking the right to speak has fallen into the state of arrears. It is not only a serious problem of arrears, but also the financial pressure caused by disputes arising from quality problems should not be underestimated.

Chen, a trader in Shengze, told the author that he had received an order a few days ago, and needed a Nei spun fabric just to purchase nylon fabrics in the market. First consulted the Shengze market, a Nei spinning factory, the price of this nylon fabric is 3.6 yuan / m, but it needs to bring the goods to pick up the goods; while a small grey fabric factory with long-term cooperation, the price of the grey cloth is 4 yuan / meter, which looks expensive, but the arrears cycle can be around 2 months. Generally speaking, a small gray cloth manufacturer will be chosen, but the problem is coming. The order is due to the quality of grey cloth, which leads the buyer to return the goods directly. Then the responsibility is ultimately attributed to the grey cloth manufacturer, not only can not get the money back, but also has to subsidize the traders' dyeing fees.

Three, the centralized release of external capacity, high inventory.

This year, the supply of conventional fabrics is in excess of demand, partly due to the centralized release of external loom loom capacity, which has affected the supply and demand pattern of grey fabric market. Coupled with the weakness of terminal demand, the order size of the fabric market has decreased from tens of thousands of meters and hundreds of thousands of meters to small orders of hundreds of meters or thousands of meters, resulting in a backlog of inventories of grey fabric manufacturers. According to the statistics of China's silk net, the inventory of grey fabric has risen to about 42 days, and is in an annual high position.

The backlog of inventory is bound to have an impact on the pricing of products, with the situation of "falling down, not rising." According to the author and a boss of a weaving factory, I realized that the price of this kind of 75D 28T Chiffon pearl fabric is 3.8 yuan / meter at the beginning of this year, and now the price has dropped to about 3.4 yuan / meter. This product is mainly running volume, small profits and quick turnover, short and short months, and the price has dropped by nearly 11%. Basically, it has already consumed the profits of the manufacturer. However, it is difficult to alleviate the situation of oversupply of conventional products in the market, and the producers of grey fabrics can only clear the price and ease the pressure on capital and inventory.

Four, small and medium-sized manufacturers lack of upgrading capability, profit compression is obvious.

Nowadays, conventional products seem to be more obvious, which means that the lack of upgrading and upgrading of small and medium-sized fabric manufacturers pressure is greater, profit margins are squeezed. It is understood that the net profit of a conventional loom per day in the previous two years was around 50-60 yuan, while in 2018 3-4, the profit of the machine once rose to 100-120 yuan / Taiwan, partly slightly higher; but this year, the net profit of conventional water jet looms has been gradually compressed, and the profit is only 10-20 yuan, or even a loss.

In the final analysis, the market still needs differentiated products, such as products with high added value. However, the development capability of small and medium-sized grey fabric manufacturers is relatively weak, and the products are relatively simple and technical. Especially in the case of low market prices, most of the grey fabric manufacturers are suffering from the financial pressure caused by a rare profit and inventory backlog.

Anyway, after all, the market is in the low season in August. It is a bit premature to make a decision. Textile enterprises need not worry too much. Perhaps the peak season will be inadvertently arrived. Golden nine silver ten or still has expectations, so as to ease the pressure of small and medium-sized cloth manufacturers.