Looking Back To The Half Year Of Price Fluctuation, The Upstream Industry Is Undamaged And The Downstream Business Is Losing Its Reputation. Textile Enterprises Are The Biggest Losers.

Since the resumption of labor resumption in February, the number of new crown pneumonia infections in the world has increased slowly from 100 thousand to 200 thousand, and has been growing faster and faster. Up to now, more than 9 million have not stopped. Under the unprecedented impact of the epidemic, the production and operation of the textile industry has been greatly affected. Orders can not be reached, the price of cloth is decreasing and the stock is rising.

Global textile orders fell by 4, and weaving manufacturers' gross profit shrank by half. The textile boss has been eating porridge for more than 3 months.

Entering the June, the traditional off-season arrived earlier, and the overall turnover of the market was even more dull. Facing the increasingly high inventory, textile boss is really "panic"!

A fabric supplier who made a brand name said: "at present, there are 5 or 6 million meter orders stacked in the factory, and I dare not make them. Our products are of high cost and good quality. If we want to compete with the market goods, the price has no advantage at all. Now the market is still in the air. I am thinking of starting a holiday at the end of June. "

In fact, such a situation is common in the market.

At present, the inventory of finished products has been normal for more than 1 and a half months. Most weaving factories have stored millions of meters of grey cloth on hand, and the larger the scale, the greater the stock. In addition, according to the latest report of the International Federation of textile manufacturers (ITMF), the textile orders from around the world dropped by more than 40% from the outbreak of the March 1, 2020 pandemic to June 8, 2020. Among them, orders for fiber producers decreased by 42%, orders for cotton mills decreased by 44%, orders for textile mills decreased by 46%, and orders for garment manufacturers dropped by 37%.

It can be seen that the orders in all links of the whole industry chain are shrinking, and the order of the weaving factories as the intermediate link is the most obvious. This also directly causes the market to be in short supply, the bargaining power is weak, and the profits of the enterprises are even more difficult.

Take the most conventional polyester taffeta in the market as an example. At present, the market price is less than 1 yuan / m, but the raw material price increase has exceeded 1000 yuan / ton in recent years. Due to the large capacity and low threshold, the output of polyester taffe is also astonishing, and the social inventory is also large. This also leads to the weak bargaining power of manufacturers, facing the current market, unable to increase the price. According to the current raw material price, 190T polyester taff has entered a loss mode.

Now 3 months have passed, "not enough" textile bosses are more worried about the future market, coupled with the recent outbreak of domestic outbreaks of two risks, exacerbated the boss "cautious" mentality.

In late June, the loom rate in Jiangsu and Zhejiang provinces also dropped slightly. It is reported that at present, the opening rate of water looms in Shengze and Changxin has dropped to 6-7; the rate of starting up in Haining and Changshu warp knitting market has reached 7; because of weak orders, Xiao Shaoyuan's production is more active and weaker, and it is about 3-4.

　　 Sun Yat - Ho, a trader in the Changxin market, said: "orders are lighter in the market recently, and many friends who open factories say they want to go back to their hometown on holiday, and wait for a good market to come back." Holidays and production cuts have been the problem of textile owners in recent years.

"Since June, we have only opened less than half of the machines, mainly used to produce spring yarns and Tav. At present, our raw materials can be used at the end of the month. If the price of raw materials is still rising or not falling down, then we will consider the holiday." Wang Jun, a textile owner with nearly 300 looms, said. Another money with more than 200 looms has been on vacation for a week, and in his words, the holiday is cheaper than starting.

Near the Dragon Boat Festival holiday time, orders for domestic and foreign trade market have not yet been good, new market single fault, so more and more textile mills began to consider holidays, less 3-5 days, more than 7-10 days.

Turning the product into protective products, the textile owner has dug himself a "big hole".

Just as the whole textile industry was in the doldrums, the concept of speculation has made some people seem to see life-saving straw and put in valuable liquidity to invest in it.

1. Mask: from "hard currency" to "unsalable goods".

At the beginning of the year, by the sudden outbreak of the new crown pneumonia and the lack of domestic mask production capacity, the mask industry turned into a new draught, and anything that stained with the word "Mask" would turn into two brands. Manager Wang is the head of a fabric enterprise. He sniffed business opportunities as early as February, invested 500 thousand yuan to register a medical Equipment Manufacturing Company, and began to produce "KN95" medical mask that was difficult to obtain during the epidemic. According to current capacity, the factory can produce nearly 10 thousand masks a day. However, due to the sharp decline in demand, by the end of May, Mr. Wang had temporarily overstocking about 1000000 KN95 masks stocks in the temporary transformation factory.

Even so, we dare not stop production. A large number of workers in the original fabric factory have gone through the difficulty of relying on the mask market, and when the fabric orders are equally bleak, what will those workers do if the mask production stops?

Because the threshold of mask production is not high, but the profit is very rich, and the demand of the conventional grey fabric is reduced because of the epidemic situation, so the textile people who choose to transfer the mask are not very few. In the month of 2-3, the profit of masks was indeed very good. But in April, because of the soaring price of raw material melt cloth, enterprises could almost only make a break even. After May, the masks on the market began to oversupply, the books might be made, but the products produced could not be sold.

2, polyester taffeta and spring Asia Textile: 100 million single big ebb tide, the price is lower than originally.

In addition to mask, affected by the epidemic, protective clothing has become a rigid demand in the market.

As the output of non-woven fabrics is insufficient, and the price has been raised more and more, cheap spring Asian spinning and polyester taffeta have entered our field of vision.

Because of the epidemic situation, the weaving enterprises' orders are missing, and for a long time, they are in low opening rate. Polyester factories have a high inventory of polyester, and crude oil prices have historically dropped.

Cloth can not be sold, raw material prices are so low, in mid April, the price of 210T polyester taff is only 0.8-0.9 yuan / meter. But in the hype of protective clothing concept, there appeared a 130 million meter large list in the market. Many textile enterprises indicated that they took advantage of this wave of market to empty the inventory of 210T polyester taffeta, and more enterprises turned the machine into 210T polyester taffeta, and the price of the product also rose to 1.2-1.3 yuan / meter. Because of the low production threshold and the heat coming up, a large number of weaving factories have switched production. But it didn't last long. Just over a week ago, the heat of taffeta dropped rapidly, and the price dropped even lower than the original, only 0.7-0.8 yuan / meter. When Xiaobian recently interviewed weaving enterprises, a weaving company said that there were no products to sell recently, but the most difficult selling must be 190T and 210T polyester taffeta.

In addition, a trader also said that unlike the non-woven fabrics, the protective clothing made by spring Asian spinning and polyester taffeta can not be degraded naturally, so it is basically impossible to export to European and American countries.

Upstream is undamaged, and downstream is losing light.

The overall price level of the upstream raw materials is flat compared with that of last year, but the overall price of the grey fabric has dropped sharply, which indicates that the cost of the whole price has been borne by the weaving end. The raw materials of the upstream are almost intact.

If prices continue to rise later, it will lead to strong dislike of weaving, or game with upstream or cut down production. Under the condition of poor overall economic situation, the pressure of weaving factories is very great.