The Spring Festival In The Rat Year Is Just Around The Corner.

Close to the year, textile enterprises have launched a holiday plan, and have issued holiday notices. It is understood that the yarn business holiday time basically in January 5~16 days, the majority of the start-up time after the beginning of 10, and about 20% of the small factories will extend the holiday until about March 1st. At present, the cotton spinning market has a limited number of active days, with less than a month left. How is the spinning enterprise running? How can we arrange the stock to complete the smooth transition after the year?

Clearing product inventory

New year orders

Looking back at the market situation in 2019, most of the spinning factory owners are talking about the word "market cold winter". More and more textile people complain that business is becoming more and more difficult, operating costs are rising, sales promotion is becoming more and more difficult, and competition content is constantly refining.

For small and medium-sized spinning enterprises, the reduction of orders is a common problem. "In the past year, we have received orders from cotton mills. But by the end of the year, inventories are still accumulating. The head of a spinning factory in Hebei regrets that many manufacturers are in the inventory stage at the moment, and even say that the cotton yarn is sold for money.

It is understood that in 2019, some small factories with a smaller volume and weak market contention were suspended for production. With the rise of the cotton textile market, some small factories resumed production and processed some small and micro order products. For enterprises in normal production and sales, there is no plan to increase production at the close of the year. One is that the market is changing again. The two is that orders are not abundant. The three is the end of the year, which has already passed the peak season of production and marketing of cloth clothing market, and the demand for raw materials has been balanced or slightly reduced.

Specifically, the production and operation status and plans of textile enterprises all over the country are also different. The driving rate of enterprises is based on the production status, such as the rate of private textile enterprises in Nantong, Jiangsu, which is about 5%~10% higher than that in Yancheng. The reason is that the textile industry in Shanghai and Hangzhou, which is close to Nantong, is relatively developed. Nantong has always been the main raw material supply side for such areas as cotton spinning, clothing, bedding, and so the market conditions are more favorable than that of Northern Jiangsu.

In addition, many enterprises in the market focus on the order organization in order to achieve a smooth transition before and after the festival. Yancheng Dafeng textile enterprises visit customers, negotiate business and sign orders. It is understood that the local textile enterprises order production has been arranged until the Spring Festival, the focus of work is the first quarter of 2020 after the Spring Festival production orders. The local production and marketing situation of the textile enterprises in the hands of orders have been arranged to April 2020, but the bulk of the order is smaller.

In terms of raw material procurement, the reserve of textile enterprises is still limited. At the end of the year, textile companies have different plans for how many raw materials they prepare, but few companies are interested in increasing their inventories. At present, enterprises that choose to enter fast selling rapidly are still in the majority. The survey shows that it is quite common to reserve raw materials for 30 days ~45 days. Because the production transfer after the Spring Festival, there are not many special arrangements for enterprises to increase inventories. As long as there are orders and funds on hand, it is not a problem to organize raw materials on board production in real time.

Reduce purchasing risk

Maximize benefits

With the further enhancement of the transparency of the cotton market operation, the gains from various links are almost open to the public. As a spinning enterprise, cost control is the focus of operating profit. Raw material cost, processing cost and management cost all have a lifting space, and are in a clear trend. Spinning enterprises have different ways of organizing raw materials, and the cost advantages and disadvantages are different.

At present, after the rise and fall of the cotton market in the second half of the year, many spinning enterprises are recovering with the increase of cotton prices. Before and after the Spring Festival, how should the spinning enterprises purchase raw materials for normal production after the Spring Festival?

In this regard, experts believe that in order to achieve steady production after the year, we must plan ahead and make stock plans early. For some enterprises that have to consider both capital and purchasing resources with high cost performance, it is necessary to consider the following aspects so as to avoid the waste of manpower and material resources.

First of all, enterprises should consider whether their existing raw materials inventory can meet the normal production needs, from inventory to meet one week to a quarter, different scale enterprises have different requirements for their inventory production. According to the investigation, individual enterprises will not be able to save the cost of capital because of the poor benefits this year. Raw materials only meet the 3~5 Angel dosage or even shorter production reserves. In the later stage, if there are special circumstances such as rain and snow or weather, transportation and other special situations, they will have a negative impact on normal startup or cause some losses. Therefore, enterprises must proceed from the actual situation and avoid small losses and big losses.

Secondly, because many enterprises adopt the mode of "follow suit", they are more concerned about the order of products. Especially after the recent easing of Sino US trade relations, some orders began to flow back. Should they increase the inventory plan? Experts suggest that if the two sides formally sign the first stage agreement in January, the probability of increasing orders will increase after the Spring Festival. Enterprises with sufficient capital may appropriately expand the purchase quantity of raw cotton.

In addition, experts said that according to the current market situation, the purchase of cost-effective cotton resources are generally concerned by textile enterprises. For enterprises with high cotton quality demand, it is possible to purchase high-quality cotton imported from Brazil cotton or new year quality corps cotton, or Xinjiang cotton warehouse cotton, especially the CF2001 contract of Zheng cotton, which is close to delivery. For orders with special needs, such as the use of long staple cotton and Australian cotton for raw cotton, enterprises can purchase some Pima cotton and Australian cotton under conditions permit. For the middle end cotton demand, we can choose to lock the high price Xinjiang cotton by point price method, whether it is price point Chen cotton or new cotton, because of strong, impurity, horse value source and other indicators difference, the price difference is bigger, so we should focus on comparison and choose the required index. For the selection of low quality sources, low price Xinjiang cotton and imported cotton can be selected or realized through matching cotton production with Xinjiang cotton.

In short, enterprises should consider from the macro cotton market, and do more in-depth comparison from the fine demand indicators. Starting from their own business conditions, the procurement risk can be reduced to a minimum, so as to maximize the benefits.