Frequent Foreign Trade Returns, Weaving Enterprises Have "Self Preservation"! How Can Polyester Factories Break 4 Of Production And Marketing Into "Strange Circles"?

Polyester production and marketing, as an important indicator reflecting the market situation of weaving, is very much concerned by textile people, and so is Xiaobian. After observing the polyester production and marketing in recent years, Xiaobian discovered some unusual phenomena.

Xiaobian found that from March 12th, the average production and sale of polyester products in polyester factories basically remained at about 4, and the fluctuation range was exceptionally small.

What exactly does 4 percent of production and marketing mean? What caused this unusual phenomenon?

　　 What does continuous 40% production and marketing mean?

Weaving companies are reluctant to buy it.

At the very beginning, what the 4 production and marketing represented was not clear, but when the production and marketing remained at almost 4 times, the situation was very obvious: weaving enterprises only purchased the quantity they needed after purchasing the raw materials every time they used them, and followed them with purchase.

According to the data monitoring of China's silk net, as of March 20th, the loom speed in Shengze has been restored to around 8.

　　 According to the tracking of polyester production and marketing in 2019, when all looms are full, raw material consumption is about 8-9 of the polyester production capacity. Now, 4 of the production and sales are obviously low. Why?

Xiaobian thinks there are two reasons: a few of the weaving enterprises recently had the practice of bottom hunting, so there was no demand for raw materials for a short time. Two, there is a certain "water" in the current rate of 8 of the weaving enterprises. Although the machine has opened so much, the capacity has not been fully covered.

Polyester enterprises fail to stock up

Starting from the second half of 2019, polyester stock has become a headache. With the outbreak of the new crown, weaving enterprises start to delay, and polyester factory stocks are further accumulated.

According to the statistics of China's silk net, as of March 23rd, the overall stock market in polyester market was concentrated for 33-44 days. In terms of specific products, POY stocks to 27-34 days, FDY stocks to 28-35 days, and DTY stocks to 34-44 days.

The original idea of polyester factories is to slow down the inventory slowly after the weaving enterprises have started construction. However, under the influence of low production and marketing, short-term inventory is basically impossible.

　　 What causes the current situation?

A lesson from the past

Since 2019, the rule of "buy or sell" polyester filament has no longer existed. After the Spring Festival, will the price of polyester rise? Not always! Can the price of polyester products continue to rise after the market is good? Neither!

Since 2019, many bosses have had a bad experience of "copying the bottom to half a mountainside", so in today's bizarre market, buying and selling is probably the best strategy for them.

Tight funds

Lack of adequate funds is also a very important reason. In 2019, the textile industry was a popular saying: today I produced two batches of cloth, a pile of piles in the warehouse, a pile of piled up in the sales department.

Although this sentence has some ridicule meaning, it also fully reflects the dilemma of weaving enterprises' high inventory of grey cloth. By 2020, the situation of high inventory of the grey cloth had not been alleviated, and a large amount of money was put on the inventory. Even if we wanted to buy the raw materials, we could not help but have enough strength.

Orders are bad.

Recently, the situation of foreign trade withdrawal has been bubbling up in textile circles. Xiaobian has also made a simple survey, and nearly 200 textile enterprises have accepted the research. The survey found that 86% of textile enterprises said that the number of orders received was less than that of last year, and 76% of foreign trade enterprises encountered the situation of returning orders, and only 5% of the customers would be compensated when they met the withdrawal order.

　　 The epidemic is spreading all over the world.

For textile enterprises, it is not only the present but also the future. At present, the number of new coronaviruses diagnosed by the world has exceeded 470 thousand cases, and is still growing at a high speed.

In an interview, Dr Zhang Hongwen said: "the outbreak of the European epidemic next spring or a small peak will probably last 2 years, and the epidemic in the United States and Japan has not been well controlled from now on. For textile enterprises, the epidemic situation of the world's major textile exporting countries is not controlled for a day, and the foreign trade market is hard to improve one day.

What does polyester maintain for 40% production and marketing?

Loss of market confidence

Friends who have met with finance and investment know that although market confidence is not real gold and silver, it can really turn into real gold and silver, which is the same in the textile industry.

Nowadays, the epidemic has become so serious that it is conceivable that the future foreign trade market will be more and more severely attacked. For textile enterprises, whether it is the order or expansion scale, they will become hesitant. No one knows what the textile market will be like after the epidemic, but from now on, there must be a bitter life in a short time.

Polyester shutdowns, industry shuffling

If 4 of the production and marketing continue to continue, for polyester enterprises, it is not only high inventory is so simple. Polyester industry was originally an industry with high investment and a long cycle of return. In recent years, polyester enterprises, which broke down for a long time due to various reasons, were common.

Once the polyester stock continues to grow (which now seems to be a probability event), on the one hand, some enterprises may stop production by means of shut-down production. On the other hand, some polyester chain enterprises with sufficient capital chain will take the opportunity to occupy more markets and expand their territory, and the polyester industry may have a new round of shuffling.