Raw Materials Rose Red, Gray Cloth Fell Green! Holiday, Price Reduction, Destocking, All Kinds Of Tricks

Recently, polyester filament price rise after last week, this week opened a new round of price increases. Although the two increases are not big, but how much will have a certain impact on downstream weaving enterprises. On May 5, after the price of polyester yarn rose, the production and sales of polyester fiber exceeded 100, and weaving manufacturers were still popular.

　　 In recent years, there has been a large volume of fabrics in autumn and winter, and printing and dyeing plants are getting warmer. Now, with the news of polyester rising, it seems that the textile market has a lot of vitality. News coverage can indeed play a good role in boosting confidence, but the reality is very cruel, and the market situation is not satisfactory.

Raw material price ups and downs, gray cloth profits fell again and again

The price of polyester rises happily, but the cloth owner can only cry silently, and the cost increases again. Although the price of polyester after the price rise is still low over the years, today's grey fabric price can not withstand the ups and downs. This year, the grey fabric price in the market is very chaotic. There is only a unified tone that only falls but does not rise. However, there is no lower limit for the decline. The price limit has been countless. It has fallen several times. From the table below, we can clearly see that the price of grey cloth has fallen sharply this year. Where is the profit?

Qi manager of a weaving enterprise which mainly produces polyester taff, Taslon and other grey fabrics, said: "the sales volume of this year is not much different from that of last year, but the profit is much lower. This year, most of the goods are sold, and the profit is only 1-2%

　　 The improvement of clothing demand is not obvious, and the rising price of grey cloth lacks support

In the near future, all the fabrics are busy in the autumn and winter, and the printing and dyeing factories are beginning to develop well. Xiaobian thinks that after the price rise of polyester, grey cloth may be increased. However, it is difficult for the boss to put into action after a price increase. On the one hand, due to the impact of the environment, the demand for terminal clothing is weak, even if the volume of fabric in autumn and winter is large, the impact on grey fabric market is very small. In the final analysis, the market is still oversupply, weaving enterprises inventory pressure body, are trying to find ways to inventory, the market competition is very big. At present, the price war is the only bargaining chip for cloth owners, and traders also choose low prices to buy grey cloth. Under such circumstances, the price of grey cloth naturally lost the confidence of price rise.

Grey fabric price is difficult to rise, weaving mill consider holiday, reduce negative acceleration!

"We're running two-thirds of our looms at present!" Zhang Zong, a textile boss who specializes in imitation memory fabrics, said, "recently, the imitation memory orders are still relatively poor. Our factory has great inventory pressure. Maybe we will consider a holiday next time."

According to general manager Zhang of the factory located in Northern Jiangsu Province, the operating rate of his family has been relatively good in the neighborhood. Many manufacturers have started to operate less than 50%, and even a few started to have holidays at the end of July.

Mr. Shen, the textile boss who specializes in the production of polyester taff and Chunya textile, also opened a factory in Northern Jiangsu. Mr. Shen, the textile boss, said that the orders in the factory were missing, and the grey cloth produced could only be used as stock. At present, the stock of grey cloth has been accumulating for more than two months. "40% of the factory's power on, it will not be able to hold on to the holiday soon. The market in August is not optimistic!" He said.

It is understood that since the scale of looms transferred to northern Jiangsu, Anhui, Jiangxi and other places is generally larger than that of Jiangsu and Zhejiang provinces, the stock accumulation speed is also faster, and the impact of market fluctuations is greater. After the start of production in September, many manufacturers such as Taiyang and Taifu Textile Co., Ltd. occupied more and more market shares in Taiyang and other regions.

The market is coming and going fast. In June, with the gradual weakening of the market of conventional fabrics, many manufacturers have accelerated the speed of accumulated inventory, and the operation of production reduction and holiday has gradually started. At present, the start-up of manufacturers is generally not high, with a higher rate of 60-70%, and the lower one is in the holiday stage.

Inventory surge, price reduction, sales acceleration!

With manufacturers' inventory increasing, fabric prices are becoming lower and lower. Under the double impact of the epidemic situation and the traditional off-season, the production and sales ratio of the upstream and downstream of the industrial chain has declined, and the pressure on the capital of enterprises has increased. Especially for weaving owners, on the one hand, they need to buy raw materials in cash, on the other hand, the withdrawal period of payment for goods is prolonged, which makes the capital turnover more difficult.

"In the past years, the payment collection cycle of my customers was generally three months, but this year it is generally in half a year. Even the balance of the order of last November has not been settled yet." Said a trader who makes silk like fabrics.

This year, affected by the epidemic situation, the imbalance between supply and demand in the market has weakened the bargaining power of weaving manufacturers. In the big environment where there are too many monks and few scholars, fabric manufacturers can only retain customers by letting customers "take goods in arrears". Although this kind of operation is not new in the textile industry, this year, due to the poor terminal consumption end and the poor overseas economic environment, the fund return cycle has been extended from bottom to top, further expanding the proportion of advance funds of enterprises themselves.