RMB Exchange Rate Soared, The Second Outbreak Of The Epidemic, Boss Bu Is In A Dilemma!

Before the national day, good news came from the market. Due to the serious epidemic situation in India, the smooth delivery could not be guaranteed. A large number of Indian textile orders were transferred to China, and the order volume was huge. It is said that it has been arranged until May next year!

This year, affected by the epidemic situation, domestic and foreign consumers' demand for clothing has declined. However, the performance of home textile fabrics has been very strong. Especially in September, a home textile boss said: Before the national day, we received orders of more than 100000 meters of home textiles, which were finally exported to Europe and the United States. It is said that the production in India may have been transferred to us. However, the RMB exchange rate has soared recently, and our final profits may be wiped out by the exchange rate. "

The RMB exchange rate soars, boss cloth is in a dilemma, should the price rise?

On the first trading day after the festival, as expected, the onshore RMB rose by nearly 1000 points against the US dollar, but more importantly, the offshore RMB exchange rate against the US dollar continued its strength since the holiday On October 9, it broke through the 6.7 level, a new high since April last year. On October 12, the central bank lowered the foreign exchange risk reserve ratio of forward foreign exchange sales business from 20% to 0. By adjusting the foreign exchange risk reserve, it can lower the exchange rate when the exchange rate rises and increases when the exchange rate depreciates, which can play a counter cyclical role in adjusting the exchange rate.

On October 15, the onshore RMB rose 70 points against the US dollar at 6.7300, while the offshore RMB rose above the 6.71 barrier against the US dollar.

Since the beginning of June this year, a wave of rapid appreciation of the RMB market, due to the better control of the epidemic situation in China, the RMB has gone up. This is good for import enterprises, but it is not a good thing for the boss who makes export business. Generally speaking, foreign trade enterprises usually settle foreign exchange in US dollars. If the exchange rate of RMB against the US dollar at the time of settlement of foreign exchange falls, it means that the profits brought by the originally negotiated price have decreased.

The rise and fall of the exchange rate has always been a pain in the hearts of textile foreign trade. If the time point of foreign exchange settlement is well grasped, a sum of money may be made, and if not, a loss may be lost in vain, "said a cloth boss in foreign trade Many export enterprises received orders are scheduled to the end of the year or even next year, the price is locked. If you come here now, it's probably for nothing! " Coincidentally, another foreign trade friend also said that he had a similar experience. He said that at the beginning of 18 years, the RMB exchange rate against the US dollar was still 6.88 the day before, and dropped to 6.78 the next day. Because the settlement of foreign exchange was one day late, he "threw away" tens of thousands of yuan.

Now, for the cloth boss who has just received a large number of foreign trade orders, he is in a dilemma. Should the price be increased at this time?

On the one hand, if the customers do not accept the price increase, they may transfer to other suppliers who have not increased the price. The price war is very fierce now. Many enterprises want to seize these "scarce" orders to make up for the losses in the first half of the year. On the other hand, the price of raw materials began to rise recently, and the exchange rate still tends to go up. If the price does not rise, then this part of the meager profit will be eaten up by the exchange rate and the rising price of raw materials, and it is likely that it will be wasted in the end!

The market improved, the raw materials rose by a large margin, and the bargaining power of suppliers began to rise

However, during the national day, the market was booming. Benefited from the cold winter and the double 11, there was a chaotic scene of "grabbing fabrics" in the market. Some dyeing factories also experienced warehouse explosion, and dyeing fees began to rise. At present, the whole industry chain is in a boom. At this time, the downstream suppliers have enough voice to ask for price increase from customers.

In addition, polyester yarn, grey fabric manufacturers have been rising in recent months, such as polyester yarn, grey yarn, and so on.

However, many cloth owners said that this is only a normal price adjustment, mainly because the front fell too hard. Taking advantage of the current good market, customers will agree to a little bit of price. ? "Our previous 240t chunyafang has dropped to 1.4 yuan / meter, and recently it has returned to 2 yuan / meter. But it can't be said that it's a price increase. 2 yuan / meter is the normal price of this cloth. " The manager of a weaving factory doing Chunya textile said. In addition, a cotton manufacturer also revealed that "cotton yarn is rising rapidly, and the fabric is in short supply. Therefore, we decided to adjust the price of 60s and 50s colored cloth by 0.5 yuan / m on the basis of the existing price, and increase the price of 40s colored cloth by 0.4 yuan / m

afterword

Recently, the market has improved, and many cloth owners have received relevant orders. Both home textile and clothing orders have increased. Many cloth owners are full of enthusiasm. They want to take advantage of this period of time to receive more orders and strive to make up for the first half of the year. Indeed, many cloth owners have received soft orders recently.

However, the more foreign trade orders continue to rise, the more likely it is for the boss to keep the overseas production data under control again. In the first half of the year, due to the misjudgment of the future situation, the manufacturers' inventory was higher and higher, and the lessons of cash flow in trouble were still fresh in my mind. On the other hand, customers should leave a certain margin when quoting, and be careful that as the exchange rate rises, the profits will be little left.