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    Stock Market Backlog! Grey Cloth Dare Not Rise! Printing And Dyeing Will Not Rise.

    2019/9/27 18:37:00 0

    MarketStockGrey ClothPrinting And Dyeing

    Since the beginning of this year, the textile market has been very warm. Once the hot market is gone, the supply of conventional products such as polyester Taffa, Chun Ya spinning and nylon spinning is obvious.

    Inventory backlog serious, prices fell more than 40%

    From the statistics of Chinese silk net, we can see that in the late March, the Shengze area has entered the tired inventory stage. After entering June, although the market has gone to stock operation, it has little effect each time. At present, the stock market is about 39 days, and it is still at a high level for nearly three years.

    It is reported that many factories in other parts of the world are in a much higher inventory, mostly in more than 2 months, or even more than 3 months.

    The reason is that the centralized release of external water jet looms has entered a rapidly increasing stage, and the change of production capacity has affected the supply and demand pattern of the grey fabric market, especially the production of conventional chemical fiber products has entered the "blowout period".

    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.

    Grey cloth prices dare not rise

    The price of grey cloth this year is out of line. It has ended many years of rising and falling prices, turning sharply downward.

    Take conventional varieties of grey cloth as an example. Last year, the price of 50*75 bright and twisting Satin was about 2.7/ meters at the highest time, but now it is generally about 2.2/ meters, and 75D 28T Chiffon has fallen from normal 3.8/ meters to about 3.4/ meters now.

    The reason for this situation is on the one hand from the supply side, and the price of upstream chemical fiber raw materials has dropped sharply.

    On the other hand, demand side, downstream clothing orders greatly reduced.

    From the change of the number of garment enterprises, we can see that the downstream market has been struggling. The number of garment enterprises has increased rapidly over the past two years.

    The loss made clothing enterprises lack the funds to purchase fabrics from upstream textile companies. Textile companies without fabric orders also joined in losses.

    The most worrying thing that grey traders always worry about is their price being compared. In the past, when someone asked for an offer, if they were not old customers, the quotations would be more cautious or even not reported.

    But now most suppliers do not have such an attitude of "proud". They know that the price is asked to compare more with others, or they can hope to offer positively.

    The price increase is a word difficult to say at the end of grey cloth. Even though the price of grey cloth has been attached to the cost line, the price can be discussed as long as the customer has the order payment method.

    Moreover, since this year, the capacity of the weaving market has been concentrated and released, but the demand has not kept up with the time, so that textile manufacturers are facing more and more fierce competition.

    Especially in the second half of the year, under the backlog of high storage, major conventional products have lowered their quotations. It is understood that the price of grey goods such as "big cargo" polyester taffeta, spring Asian spinning and nylon spinning has been reduced by at least 4 percent. Many manufacturers say that this price is now at a low price in recent years.

    From the specific machine rate, it is understood that the net profit of a conventional loom per day in the previous two years was about 50-60 yuan, while in 2018, 3-4 months, the profit per machine rose to 100-120 yuan, or even higher.

    But this year, the net profit of conventional looms is obviously compressed, and the profit of each loom is only 10-20 yuan, or even a loss.

    Dyeing and printing fees remain unchanged.

    It has always been a printing and dyeing factory that supplies less than needed. This year, it is a real experience of asking others to do their work.

    Terminal clothing orders lack, through layers of transmission, eventually reacted on the few printing and dyeing enterprises.

    In the past, hundreds of printing and dyeing equipment, four hundred or five hundred employees, the daily production volume of 5. 6 million meters is proudly, but now it has become a heavy burden.

    Last time, it was last year for most printing and dyeing mills.

    The cost of dyeing does not mean that the cost is not rising. All kinds of labor, rent, taxes, water and electricity and so on are all in the rear.

    In the past, the positive printing and dyeing factories were unwilling to raise their prices from time to time.

    Although dyeing plants are few, after years of development, most of them are close to technology and technology, and gradually the price becomes the standard to distinguish all kinds of dyeing factories.

    In particular, this year's original capacity is not saturated, although some of the slight profits will be gained by the blind price increase, it is totally unmatched with the customers who are losing.

    Therefore, many printing and dyeing factories not only do not raise prices, but also secretly reduce fees to attract large customers.

    Only by adhering to the price, stabilizing the customer base and maintaining the factory operation is the most important consideration at present.

    Loss of printing and dyeing enterprises increased

    According to statistics of China printing and dyeing industry association, in 2019 1~7, the proportion of printing and dyeing enterprises above designated size was three, 6.68%, down 0.02 percentage points compared with that of the previous year, of which 6.44% of cotton printing and dyeing enterprises and 8.53% of chemical fiber dyeing and printing enterprises.

    The cost and profit margin was 4.69%, an increase of 0.36 percentage points compared to the same period last year, and the profit margin of sales increased by 4.42%, up 0.32 percentage points compared with that of the previous year. The turnover rate of finished goods was 12.22 times a year, an increase of 2.01% compared with the same period last year; the turnover rate of accounts receivable increased 4.84 times a year, 10.89% year-on-year; the turnover rate of total assets was 0.64 times / year, an increase of 1.06% over the same period last year.

    2019 1-7 printing and dyeing industry operation benefit index

    In 1~7, printing and dyeing enterprises above Designated Size realized 160 billion 389 million yuan in main business, an increase of 0.97% over the same period last year, and realized a total profit of 7 billion 95 million yuan, an increase of 8.7% over the same period last year.

    In 1~7, the number of loss making enterprises in the above scale printing and dyeing enterprises was 375, with a loss of 23.05%, an increase of 1.48 percentage points over the same period in 2018.

    The total deficit of deficit companies amounted to 1 billion 183 million yuan, an increase of 5.49% over the same period in 2018.

    All kinds of companies are afraid to rise, rise or decline, and form the textile market. The links and prices of the textile industry chain have been further and further away.

    Of course, the price rise from the market is abominable, but running at a low price is even more frightening. The lack of profits will gradually lose confidence in the textile industry. Capital withdrawal and investment weakening will eventually lose its vitality.

    Although it is always said that clothing is just needed, this does not mean that the textile and garment industry will remain unchanged forever. Transformation, shuffling and elimination are in full swing.

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