"One Helmet Area" New Policy, Helmet As New Outlet For Textile Industry

These days, I wonder if everyone has discovered that the friends circle, who sold fabric, sold masks and melted spray cloth, now started selling helmets.

Why did the helmet suddenly fire? It was originally derived from the recent "one helmet area" policy.

In April 21, 2020, the Ministry of public security informed that from June 1, 2020, the "helmet area" security guard action will be carried out throughout the country. During the operation, the public security traffic control department will strengthen law enforcement management, check and rectify motorcycles, electric bicycles, riding helmets, and car drivers without wearing seat belts.

This means that since June 1st, electric bicycles and motorcycles have been fined without helmets. This has led to a surge in demand for helmets, and middlemen from all walks of life have begun to take a lead, including textile traders.

Will the helmet be the next draught?

Many textile traders have recently begun to turn their helmets around. They generally say that they are making money now, like those who first sold masks, sold non-woven fabrics and melted spray cloth. Even for a few days, the price of helmet has risen from 35 yuan to 85 yuan, and even some have risen to more than 100. After soaring prices, we quickly turned to the helmet. A few months ago, the similar routine of buying masks appeared again. The wholesale price of a normal helmet is more than ten yuan, and now it has risen to dozens of pieces, even if a helmet is worth 2 yuan, a single 100 top batch can earn a thousand yuan. In Yiwu and other wholesale markets, many people get rich overnight by helmets.

And helmets are not like those of respirators and melted cloth. Helmets do not need to be exported, nor do they require qualification. They are much simpler and more convenient.

But we need to wake up at the same time. Although the resale helmet is simpler than the anti epidemic products such as masks and melted cloth, the demand is temporary. Helmets belong to durable goods. A helmet can be used for several years. Once the demand is saturated, the production capacity of the helmet is increased, and it is easy to fall into a state of oversupply. It can be said that the demand for helmets will surge sharply in the coming period, but as time goes on, demand will slowly fall back. The boss who has entered the field has made quick money, and those who have just entered or are about to enter will become a "disc player".

Hard for half a year, money has not earned, and no confidence.

Why are so many textile people heading for helmets? In the final analysis, the market is bad, and profits are getting lower and lower. Making textile money is a consensus within the industry. It is hard to work hard all year round, and it is basically working all year round. Most of the time it is for workers to work. Like the lowest conventional fabrics, the profit is only about 3%, while the high-end fabrics, though relatively profitable, are not what factories can do.

"We made spring Asia spinning last year, basically working for workers. At the end of the year, there was not a lot of money in their pockets. This year's situation is even more serious. Now we want to transform into high-end fabrics, and the profits will be higher. After all, the demand is going to the high end. It's easy to transform, and there is too much money for the early stage, so the pressure is really great." A cloth boss reluctantly said.

Since May, although the raw materials have been rising, domestic trade has improved, foreign trade has slowly returned to the market, market confidence has recovered slightly, and the rate of start-up has also risen to 7-8, but for the latter market, pessimistic textile people are in the majority. Recently, the market has rebounded, especially in the domestic trade. We have received orders for 100 thousand meters of Tencel, but after May, it is the traditional off-season. It is still very difficult for the market to improve, and the epidemic situation abroad has not been completely controlled. The recovery of clothing consumption has to wait for a while. "

Textile people's lack of confidence in the market outlook is also reflected in the purchase of raw materials. After interviews, many manufacturers said that there were only 10 days left in the raw materials, and some even in 3 days, but asked whether they would hoard a bit of raw materials. Most textile people said no. "no matter whether the raw materials are up or down, we dare not buy more raw materials, or we should take orders according to the order, but what we are receiving now is scattered." Single. "A cloth boss who owns more than 100 looms is helpless. Popularly speaking, downstream demand is the basis for deciding whether the price of polyester can continue to rise. Now the terminal textile orders are difficult to enhance substantially in the short term, so many market participants believe that the rise of polyester will not last long. So we usually take the strategy of buying and using.

afterword

Judging from the current situation, although recently driven by crude oil, polyester filament has ushered in a wave of rise, and also led to the market atmosphere, but foreign trade has not been significantly improved, and the market is really warm up for some time. However, recently the hot helmet, the textile people should also be careful to enter the field. Do not be bewildered by the immediate interests. Fast money is fast, but not so profitable. It should still do its job well and practice its own skills in the off-season, so that it can occupy a place in the textile market when the epidemic situation is controlled and the market is getting warmer.