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    The Tide Of Orders Has Not Waited Until The Price War Has Come Quietly.

    2020/6/4 10:41:00 0

    Price War

    Recently, a lot of textile friends and small business Tucao: business is weak again! With the improvement of domestic epidemic situation and the lifting of overseas countries, the whole industrial chain should usher in "full blood resurrection", but the current market is not so, brutal price wars are also roaring.

    3.20 yuan / M: the price of grey cloth for 18 years is also the price of finished products at present.

    What concept?

    "The market price is too chaotic recently. By the end of 2018, the price of 300T spring sub fabric was around 3.20 yuan / meter, when it was still queuing up to buy goods with the money, but now 3.20 yuan / meter is the finished product at the selling price." A textile personage said.

    Another person in charge of spinning enterprises in Hebei and Shengze also sighed with emotion: "at present, the market price is in disorder. 240 spring Asian spinning our newspaper at 1.50 yuan / m, the market price of 1.20 yuan / meter, 1.30 yuan / meter has, we can not do this price at all, and how to compete with others."

       Xiaobian calculated an account. At present, the dyeing cost of spring Asian spinning is about 1 yuan / meter. In other words, in 2 years, the price of 300T spring sub fabric has dropped by 1 yuan / meter, but the cost of raw materials has dropped by only 3000 yuan / ton.

    With the epidemic spreading worldwide, the textile market has experienced "chopping up single tides" and "missing single tides". Many textile companies are now putting down their prices only to settle down in the market.

    Not long ago, there was also a sprinkler manufacturer that used to make top-grade products in the market. It used Japan's Tianjin Tian Ju to produce low-end products such as polyester taffeta and spring Asian spinning, even though it lost 100 yuan per day, it was able to maintain normal operation. In fact, this phenomenon is not a precedent in the market. In order to survive, enterprises can only choose to "lose less". Because of this, the transaction price in the market is also more chaotic.

    For most textile bosses, price war is a helpless move to relieve inventory and capital pressure. "The market in May has been feeling for more than 1 weeks. Now the market is fading and our stock is going up. Now it is nearly 2 months. We can only throw away the price at a low price." A textile boss Wang said.

    Indeed, under the condition of high inventory and low demand, the grey cloth in the warehouse has already occupied a lot of money, and manpower, water and electricity, rent and so on also need cash payment. In this case, if the inventory is not realized, the business pressure will be enlarged.

    In the era of "too many people," the upper and lower reaches are under pressure.

    Market chaos is also growing, largely because demand rebounds less than expected, and market orders are "less than enough".

    It has been 3 months since the outbreak of epidemics abroad. After experiencing the most difficult period of global blockade, many countries have been "unsealing" to resume their normal social life. The foreign trade market has increased the number of enquiries, but the order has been partially reflux. However, because the market is still in a state of extreme lack of orders, so many countries are still in a state of extreme lack of orders. The emergence of an order will be quickly digested by the market, showing how fierce the market competition is.

    Throughout the downstream market, some friends have Tucao on the Internet: many industries began to decline this year, especially in the clothing industry. Take the Wuhan market as an example. From less than two months after unwinding, business in the market is still poor. Some factories start to leave in less than a month. This shows that the clothing industry is very difficult.

       More than just the clothing industry, it is learnt that the recent start of the weaving market has slipped again, and that the holiday market has also increased since May. "During this period, our inventory increased again, so we should appropriately reduce the start up." Chen, a chief textile operator of polyester and taffeta, said.

    This is not a case. According to the survey, several textile companies in the month of 5 have begun to operate more or less in recent years. The biggest factor is the lack of orders. "At present, the market is moving, but there are not many orders. Compared with the same period last year, hand orders are few and far between, and enquiries have been followed up continuously. However, the actual orders are not many, and the protective clothing fabrics in the early stage are also coming to an end. Everyone is in a wait-and-see state now." Chen said.

    From shortage to shortage, price war has arrived. The epidemic has disrupted the normal pace of development of the whole industry, but it itself is a "black swan" which can not be predicted and avoided.

    However, it is worth noting that with the overseas countries' economic unwinding, the foreign trade market inquiry has increased significantly.

    Obviously, the market is still worth looking forward to. However, under the current attack of uncertain factors, we can only identify ourselves in the position of the industrial chain and seize more opportunities.

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