I Think That When The Peak Season Arrives, We Can Make A "Turnover", And Result In A "Price War".

With the arrival of the "golden nine silver ten" traditional textile peak season, some textile factories in the lower reaches have begun to receive new orders. Although the demand for products has increased, the situation of buying and selling on demand by the market seems to have gradually evolved into a "price war" between business and enterprises.

The helplessness of chemical fiber and cotton spinning is the result of a "price war".

Recently, Xiaobian has heard a lot of good news during the visit. He summed up the following sentence: the market is indeed starting to get more lists. But this may be just a representation. With the deepening of conversation with cloth boss, Xiaobian found behind the surface scenery, in fact, their hearts are "sighing and sighing"!

"Now the price of fabric has been the lowest price I have been making for many years. When the market was not good, the price was not as low as this." Wang Chang, who is doing fabric business in Changshu, sighs with Xiaobian.

He calculated the cost: the raw material is low, but the cost of artificial electricity, water and electricity is rising. In addition, the cost of safety supervision and environmental protection has been on the rise. The price of grey cloth has been dragged down by the market, and the price is also being ruthlessly suppressed by the reality. The space of the fall is obvious. In recent years, tsailon, which is more popular with casual wear, for example, the price of 228T polyester tsilon is currently 3.40 yuan / meter, 228T nylon tsilon is 4.90 yuan / m, and three months ago, the price of 228T nylon tsilon is still 5.80 yuan / m, and the price of polyester tsilon is still higher.

Transaction price - cost = profit, but now the climbing cost of operation is hit by the price of cloth that is losing steadily. The profits that the manufacturers can get can be imagined.

According to the cloth boss of a workman's fabric, one machine can earn 100 yuan a day, and only about 50 yuan this year. "Now that customers come to ask me for quotations, I have reported the lowest price directly, and do not expect them to return the price, because it is really in the end."

From the monitoring data of the sample enterprises, the machine room rate of conventional water jet looms is low in the third quarter. For example, the machine which produces 190T polyester taffeta products, when the raw material is high in June, 190T polyester taffeta is losing one day a day. Although the raw material has fallen, the cost pressure has dropped, but the gray cloth has excess capacity, so the manufacturers prefer small profits but quick turnover, and the profit margins have not improved significantly.

The same thing also happened in the cotton spinning industry. Near September, Sino US consultations did not take place as scheduled. It can be seen that the stalemate in short-term Sino US trade relations is hard to break, and the downstream textile enterprises are facing enormous pressure on exports. Since the outbreak of the trade war, cotton prices have been continuously explored and the pressure on cotton enterprises has been increasing.

According to recent surveys, whether the cotton purchasing enterprises of Xinjiang cotton, which was purchased at the initial stage of cotton marketing last year, or the enterprises that purchase cotton reserves since the end of this year's cotton production, it is generally indicated that no matter whether the cotton price can rebound now, the funds occupied have been locked up, and the risk of enterprise operation is likely to increase.

A southern Xinjiang trader said that he did not want to gamble again. At the same time, we also feedback that the price of Xinjiang cotton is falling every day. The first day is 13400 yuan / ton, and it will not be able to sell the price in second days. Another importing cotton trader speaks frankly, and now it loses 3000 yuan / ton per ton of cotton, even if the goods are sold at a low price, it will not sell well. The main problem is that no one orders. This phenomenon is no longer a case.

According to the recent monitoring of the Qingdao port market, the mainstream price of Brazil cotton in early Zhou Dynasty is still 13100-13300 yuan / ton, and now 12700 yuan / ton is difficult to sell. What's more, the middlemen realize that if you want to purchase lint of a certain index, all kinds of cotton merchants will go up and recommend high cost performance resources, and the low-end quotation will emerge in an endless stream, making it difficult to decide.

Behind the textile market is to seize the "time bomb" of overcapacity.

Behind the market competition for sales opportunities, it reflects the worries of textile people on the market outlook. It is the urgency of timely stop loss and the expression of risk aversion.

This year, the textile industry boom is not good, the upstream polyester demand is weak, the downstream fabric inventory is too high is the current market normal.

Data show that in the past two years to North Jiangsu, Anhui, Hubei, Jiangxi and other places of the new loom loom capacity exceeded 200 thousand Taiwan Customs clearance, far exceeding the Yangtze River Delta region traditional textile cluster eliminated the number of water jet looms. The volume of water jet looms in the entire textile industry is much larger than that before the "restricted" operation.

In front of making money, there is no sense of risk. We are desperately trying to expand the capacity of the new line, and we are afraid of losing the opportunity to steal money. However, the market rule tells us that the supplier market, which is formed without strong demand, is a pseudo demand. After the bubble, it left behind the situation that it did not lead to the failure to start normally, but also caused the market confusion and price confusion due to the low price of the market everywhere.

The sudden sale of the textile market has changed the running status of weaving and dyeing for more than half a year, and laid a foreshadow for the price of raw materials and dyeing. But we also need to think rationally about how long the "local peak season" can be brought about by these two kinds of varieties, and whether it can bring the whole textile market back to warmer, or "be destroyed" in the off-season.

At this moment, it is important to keep up with the trend and grasp this rare "busy season", but blindly following up may be just a "catch up".

After investigation, most of the bosses of the business owners are more bearish on the market. Liu Chang, a trading company, thinks, "market goods are all in a rush, coming and going quickly. It is estimated that it will be one or two months, and then it will be relatively dull. Market orders do not feel very relevant to orders. The requirements of the market are completely different from the orders, so they will not lead the order market.

Foreign trade enterprise president Wang said: "it is estimated that a wave of market, because our company is busy in the second half of 11 and December, and there are many market orders at this time in previous years, so the current wave should be temporary, and it should be concentrated until then. But this year's overall market is not as good as before, and it may not be able to reach the peak of the past year.

This year's market can't afford to be hurt. It has become the voice of many textile bosses. At present, the turnover in the market has improved, and the trucks carrying grey cloth on the market are also starting to bustle. However, everyone can really give a big hello to this market.

Xiaobian wants to say here that the market always holds the "time bomb" of overcapacity. Only by stabilizing the word, can we survive the cold winter!