Gray Cloth Loss, Factory Closure, Floor Price Sell-Off, June Textile Enterprises How To Spend?

He looked at the tall building and watched him feast guests. Maybe this is what the recent textile boss sees the raw material market.

From the beginning of May to now, the price of polyester filament has dropped and rebounded, and up to now, it has risen 1000 yuan per ton. Today, the era of cheap raw materials seems to be gone forever, and the era of low price of grey cloth is still continuing.

　　 It seems that the upstream of the entire textile industry chain has been releasing the signal of bottoming out. What is the downstream textile market?

The downstream market will enter the off-season, and the textile industry is facing another big test.

Entering the market in June, the market is approaching the normal off-season, and the market confidence of textile enterprises is low. No matter domestic demand or foreign trade, enterprises generally believe that the downstream market will enter the off-season, and the textile industry will face the big test again.

01

Domestic demand: low season prelude, small and medium enterprises under pressure

From the time of consumption habits and downstream replenishment, we will enter the off-season in 7 and August, and the order is in a state of slack. Industry experts said that some of the small and medium-sized enterprises may face pressure to cut production, shut down, vacation or even shut down in the month of 6~9.

02

Export: prelude to holiday, less orders.

The EU generally has high temperature holidays in 7~9 months, and France, Italy and Holland will have at least one month to go. Therefore, the export orders for the market in 6 and July are relatively small, and will increase again after 8 and September. Therefore, the downstream market in 6 and July is generally not optimistic, and the market will not improve until August.

Stocks are running high and cash flow is tight. This market is too weird.

At present, it is still a slight loss or a small profit to buy gray cloth now. After all, the price of grey cloth is not as good as the price of raw materials, so the spot profit has not been improved. The upstream raw materials are expected to rise, and the terminal demand market has improved pressure. Therefore, the recent contradiction between weaving manufacturers is more prominent. "Now the raw materials are small, which obviously compresses our profit margins. The price of cloth can not be found, and the days are getting even harder." Zhu Zong, the head of textile industry, a main silk imitation fabric, said.

A company owner with 200 looms said that the factory remained at about 8 per cent in recent years, and dropped to 6 per cent in the near future. The reason is to underestimate the seriousness of the epidemic and think that the market downturn will not be too long. We hope to protect workers and avoid attracting people when the market improves. Then inventory continues to rise, profits are low and cash is tight.

　　 However, there are two different voices in the recent market.

01

When the gray cloth appears to be in a loss, some manufacturers will close the dish.

Some enterprises say that most of the grey cloth sold recently is the inventory of grey cloth produced before May. Only when the raw material produced from that raw material purchased at that time is sold now, will it not lose money, and there will be a small profit. After May, the raw materials produced by the raw materials sold are sold at a loss, so they can only be placed, and the price of the grey cloth will be sold again.

A boss who produces conventional varieties of grey cloth revealed: "raw material has gone up so much, but the price of grey cloth has not changed. Now the grey fabric produced is definitely at a loss, and it will probably lose 0.3-0.4 yuan / meter. I can't afford this price. I will not sell any customers, I will keep them in stock and wait for sale in the second half. "

However, the sealing of grey cloth will only increase the stock. Since the beginning of this year, the fabric inventory of weaving enterprises has remained high. The most important reason is that the demand for grey cloth has been greatly reduced. But recently, the market has seen a wave of goods, and the stock of grey fabrics has been improved. One of the reasons is that cloth boss will not sell the grey cloth produced in the near future. The looms are still in production, and the grey cloth is not sold, so the stock will naturally accumulate. In addition, many enterprises last year's inventory is not necessarily clear, it is like adding insult to injury.

"Our factory has a large inventory of grey cloth, with seven million eight million meters. Mainly last year, the price of raw materials was too high. In this year, the price of grey cloth was too much, so I kept putting it on sale, and sold it all year after year. After the year, the volume of goods is not good, so the stock is accumulating. " A gray cloth boss in Shengze said.

02

"Floor price" throws goods, the market is too strange!

Entering the May, raw material prices have been rising frequently, especially the polyester filament FDY, which is used to produce products such as polyester taffeta and has gone up a lot. After entering the middle of May, the price of grey cloth market is particularly tight. Many enterprises are eager to sell at low prices. The price is even lower, such as "floor price". The market even appears that the price of finished products is below or equal to the price of grey cloth.

210T polyester taffeta black at 1.65 yuan / m, 240T spring Asian textile, white at 1.90 yuan / m, 300T spring sub textile, white at 2 yuan / m, 75D imitation silk at 2.20 yuan / MI......

"At present, dyeing fees and gray cloth prices are at the lowest level in previous years, but I do not dare to hoard them, mainly because they are not sure about the market in the second half of the year." A trader in Wujiang said.

In June, small and medium-sized textile enterprises will again face a crisis of production and downtime.

The grey cloth produced by high priced raw materials is not sold in stock, and the pressure of late capital is very huge. At the same time, throwing stocks at low prices will only make the products break through the bottom line again and again, and eventually become more unsalable, and the market's market will gradually fade away, and the traditional low season will go deeper. The reduction of output seems to be the only way out for them.

"Now that raw materials have gone up again, if the price of grey cloth can not rise, I will be prepared to reduce production. At present, there are 300 looms in production, at least half of the yield reduction, leaving about 100 units to produce. Now most of our factories in Henan are inadequate, and the possibility of reducing the machine later is also very large. A factory in Henan grey cloth factory boss told Xiaobian.

In addition to the high inventory of grey cloth, the next July and August is the traditional off-season itself. Under such special circumstances this year, the reduction of production has become a common means of self-help for grey fabric enterprises. This summer, perhaps more companies will join in production cuts.