In The Off-Season, Raw Materials Are Also Going Against The Trend.

Recently, cotton net has investigated several chemical fiber factories in Xiaoshan, Hangzhou. One of the main manufacturers of eddy spinning, after starting in March, encountered some orders and returned to the market. It immediately felt that the market was not good enough. In the early April, it closed half of its capacity. It belonged to the local enterprises with lower production capacity. Therefore, the inventory of the finished products is relatively small, and the production and marketing are basically balanced, so the cash flow is relatively abundant.

Another chemical fiber manufacturer is still fully open, the monthly yarn production is about 650 tons, the current production and marketing rate is only half, and the remaining half can only be reserved for inventory, so the factory's inventory is far higher than the same period last year. In general, the local chemical fiber plant starts at an average rate of 50%-60%, and the average operating rate of the downstream dyeing and finishing plant is around 60%. The epidemic has led to a sharp reduction in export orders and a great impact on the whole industry. Factories have been shut down or bankrupted. But the overall capacity is still oversupply, so the price competition is heating up. Factories are losing profits or even losing money.

From the perspective of the whole industry chain, the raw material side occupies a high profit point, because the raw material enterprises are more concentrated, and several large petrochemical enterprises are almost monopolized in the industry, and the prices are relatively uniform. Crude oil has rebounded sharply in recent days, so the price of polyester staple fiber has also risen, rising 100 yuan / ton in one week, and the downstream can only accept it, and the bargaining power is very low. Moreover, downstream yarns can not follow the price increase, and only hope to make more goods and reduce inventory pressure.

However, at present, textile foreign trade is still in a state of stagnation. According to the feedback from enterprises, 90% of enterprises still fail to receive foreign trade orders, and the entire export trade is stagnant. It is understood that only a small number of enterprises have not been affected by the epidemic and stop issuing orders. Even if they have not stopped, the order volume has fallen sharply. The original orders are many hundreds of thousands, and tens of thousands of pieces, and now almost all of them are in thousands of pieces, even tens of thousands of pieces are regarded as large orders.

Foreign trade is not easy this year, then turn to domestic trade. This makes the limited domestic trade become more crowded this year, the pressure of competition is aggravated, and profits continue to shrink. According to Sina Financial reports, there are about 700 foreign trade transferred to domestic trade every day. How terrible is this data?

A domestic trade boss said: "now there are basically no hot products. As long as we get out one or two hot products, everyone will rush to do it, and the heat in ten and a half months will come down." Like the mask, helmet and so on. Any kind of order will be quickly digested by the market, and it is too late to grow. Even a lot of enterprises are overtaking the order of autumn and winter ahead of time to make the production in advance to maintain the current neutral position.

"Our company is doing some silk fabrics, silk, acetic acid and other slightly high-end fabrics, and basically are foreign trade exports, mainly exported to the United States. In the past year, we can achieve more than one hundred million yuan a year, but this year because of the serious epidemic of pneumonia, the United States is the hardest hit, and our orders have fallen by more than 90%, "said one trader responsible. And their company has more staff and higher production costs, and the turnover is hard to guarantee normal production and operation. They are fully supporting at present. As for how long it can last, everyone has little confidence.

The reduction of orders is so large that enterprises will inevitably lose money. Of course, enterprises in this state are more than them, and the number is not very small, especially for textile enterprises specializing in foreign trade or foreign trade.

According to the data of the National Bureau of statistics, in the past two years, the number of loss making enterprises in our textile industry is relatively stable every month, roughly 3000. But this year, the number of deficit spinning enterprises rapidly increased, reaching 6500 in February and March. Although the number of losses in April has decreased slightly, there is still no return to normal.

Loss seems to be an unavoidable problem for our textile industry at present. How to avoid losses or reduce losses is the top priority for all textile enterprises.

It is reported that some textile enterprises at low prices, the appropriate storage of yarn, grey cloth, waiting for the market to improve later. They believe that after the obvious improvement of the epidemic situation, they can quickly launch and expand their profit margins, thus making up for some previous losses, but the risks are also difficult to grasp.

The textile off-season was somewhat unexpected, lasting for a long time and showing no signs of improvement. For textile enterprises, it is acceptable for most enterprises to produce two or three months' high load production. If half a year or even a year is in this state, it will be a bit difficult. As a result, many textile companies began to adjust their strategies, waiting for customers to place orders, and selling them to customers, especially the regular customers who were doing all the year round.

Many textile enterprises have encountered the situation of sharp decline in orders and widespread losses, and will continue to ferment along with the epidemic situation. Before the economic recovery in Europe and America, foreign trade orders are hard to satisfy all textile people's needs. Especially in the near future, the textile market is turning pale again. Although it is already summer, textile people will soon experience the most bitter winter.