Peripheral Capacity Expansion, Grey Cloth Production Surplus! 2020, The Market Has Foreshadowed!

More and more close to the Spring Festival, most of the textile enterprises on the market have also been on holiday. Looking at the past 2019 and the still severe 2020, it is a mixed blessing.

No loss is earned! Textile market profits shrink rapidly

How to describe the textile market in 2019, most textile people would say, "the peak season is not prosperous, the off-season is very light, and business is bad." Because of poor market performance, the industry chain itself overcapacity dilemma, the industry's own profits are also getting lower and lower, compared with last year's highest point, the profit is removed most!

Take one of the most common water jet loom and weave the most common polyester taffeta as an example. In 2018, it can earn 160 yuan a day, and 100 small looms can earn 16000 in one day, about 5800000 in a year. In 2019, the taffe machine rate had dropped to 20-30 yuan or even lower, guaranteed.

In addition to the lack of bright spots in the market, the comprehensive cost of manufacturers in the 19 years is getting higher and higher. In the era of soaring prices, labor, water and electricity, rent and other expenses also rose. "The rent of our factory has risen to 300 yuan / Ping this year, which has been rising for 2 years." Xia Zhuang, the owner of a textile mill in Wujiang, said, "this year's market is profitable without loss. Now we can satisfy our needs if we can keep the capital business."

"Business as a whole." A boss who has worked on textiles for more than 20 years said. In 2019, both the raw material market and the fabric market experienced a deep drop in space. Some chemical fiber fabrics fell by nearly 5 gross per month, while others were selling at low prices.

In 2019, the market was not satisfactory, but there were many reasons, such as capacity, external environment, policy and so on. Among them, the expansion of peripheral capacity has resulted in the overcapacity of the market, which has become an important straw in this year's market.

Overcapacity is more than just talking about it! Grey fabric production increased by nearly 20% over the same period last year.

This year, the "overcapacity" has become an indelible pain in our hearts. Many textile owners who go to the periphery to open factories have a lot of headaches.

In fact, as early as 2 years ago, buying land and setting up factories in the Midwest is the new Eden Garden for textile owners to pursue wealth. In 2017 and 2018, with the production capacity of water jet looms eliminated in Jiangsu and Zhejiang provinces, weaving enterprises began to transfer to the surrounding areas in order to meet the production needs. The enterprises in South of Jiangsu moved to northern Jiangsu, and enterprises in Zhejiang and Shanghai moved to Hunan, Hubei and Jiangxi.

In the age of environmental protection, many textile factories that had been retreated began to shift to the Midwest and inland areas. According to the requirements of local investment, hundreds of hundreds of new ones were generated, resulting in a blowout of the originally shrinking capacity after 1 years.

According to the estimates of many industry insiders, the production capacity of loom loom is approaching 40000 units in the large province of Anhui Province, and the capacity of loom loom in Hubei province has reached about 23000 units.

If we add these new looms to capacity, we will already exceed 200 thousand units, exceeding the number eliminated in Wujiang, Jiaxing and Huzhou. Originally due to loom renovation brought about by the blank production capacity, and even a lot of surplus.

Taking the textile industry of Anhui Province as an example, the yarn production in 2018 was 1 million 276 thousand tons, an increase of 15.6% over the same period last year; the output of cloth was 970 million meters, an increase of 19.4% over the same period last year; the output of clothing was 940 million, an increase of 1.4% over the same period last year; the output of chemical fiber 396 thousand tons, an increase of 10.5% over the same period.

The sharp rise in production has laid the foreshadowing for overcapacity. On the one hand, grey cloth has been put into the market a lot. On the other hand, the digestion speed of the terminal has obviously slowed down. "Nearly two months, we have maintained about 5 of the start, is to be good years ago to inventory, the first half of next year, the pressure is still relatively large." Chen, a factory opening in Northern Jiangsu, said.

The textile boss who was preparing to go out for a big job is now under pressure. In December 2019, many textile owners who built factories in the field were preparing for the holidays. Today, the sharp rise of grey cloth production has laid the foreshadowing for the market in 2020.