News

Grey cloth loss, manufacturers sealed plate, floor price sell-off, how to spend textile enterprises in June?

See him rise high, see him feast guests! Perhaps this is the voice of the textile boss to see the raw material market recently!

In June, the normal slack season of the market comes, and the market confidence of textile enterprises is low. No matter domestic demand or foreign trade, enterprises generally think that the downstream market will enter the slack season, and the textile industry will face another big test.

01

Domestic demand: prelude to the off-season, pressure on SMEs

From the perspective of consumption habits and downstream replenishment opportunities, July and August will enter the off-season, and orders will be in a state of blue and white. Some small and medium-sized enterprises may face pressure to cut production, shut down, have holidays or even close down from June to September, industry experts said.

02

Export: prelude to holiday, less orders

The European Union usually takes high-temperature leave from July to September, and France, Italy, Netherlands and other countries need to do so for at least one month. Therefore, the export orders in June and July are relatively small, and will increase again after August and September. Therefore, the downstream market in June and July is generally not optimistic. If it is fast, the market will not improve until August.

Stock goes up, cash flow is tight, this wave of market is too weird!

At present, the price of grey cloth is not as high as the price of raw materials, so the spot profit has not improved. The upstream raw materials are higher than expected, and the terminal demand market is under improving pressure, so the recent contradictions among weaving manufacturers are more prominent. "Now that the raw materials are rising slightly, it's obvious that our profit space has been compressed. The cloth price can't be found. It's more difficult to live." Zhu Zong, head of a textile company specializing in silk like fabrics, said.

A person in charge of an enterprise with 200 looms said that the factory had recently maintained a level of about 80%, and recently dropped to 60%. The reason is that we underestimated the severity of the epidemic and thought that the time of the market downturn would not be too long. We hope to protect workers and avoid that no one can be recruited when the market improves. Then, at present, the inventory continues to rise, the profit goes down, and the cash is already tight.

However, there are two different voices on the market in the near future:

01

When the grey cloth is in deficit, some manufacturers seal the disc

Some enterprises said that most of the grey cloth sold recently was the stock of grey cloth produced before May. Only the grey cloth produced from the raw materials purchased during that period can be sold now without loss, and there is also a small profit. The grey cloth produced from the raw materials purchased after May is now sold at a loss, so it can only be kept until the price of the grey cloth is corrected.

A boss who produces the conventional grey cloth said: "the price of grey cloth has not changed since the raw materials have gone up so much. Now the grey cloth produced must be at a loss, about 0.3-0.4 yuan / meter. I can't afford this price. I don't sell it if there is a customer's demand. I'll keep it in stock and sell it in the second half of the year. "

However, the grey cloth sealing plate will only make the inventory more and more! Since the beginning of this year, the stock of grey fabric in weaving enterprises has remained high, the most important reason is that the demand for grey fabric has greatly weakened. But the recent market ushered in a wave of goods, grey cloth inventory is still improved, one of the reasons is that there is a cloth boss will not sell the recent production of grey cloth. Loom is still in production, grey cloth sealed disk is not sold, the more natural inventory. In addition, the inventory of many enterprises last year may not be completely cleared, which is just like adding to the problem.

"Our factory has a large stock of grey cloth, seven or eight million meters. The main reason is that last year's price of grey cloth raw materials was too high. According to this year's price of grey cloth, there was too much loss, so I kept it unsold. It was all produced after the year of sale. After the end of the year, the volume of goods is not good, so the inventory is accumulating more and more. " A grey cloth owner in Shengze district said.

02

"Floor price" selling, the market is too weird!

In May, the price of raw materials rose frequently, especially the price of polyester filament FDY, which was used to produce polyester taffer and other products, but the price of grey cloth could not be replaced. After entering the middle of May, the market price of grey cloth is particularly sticky. Many enterprises are eager to sell goods at a low price, and the price is even lower than the "floor price". The market even has the phenomenon that the finished product price is lower than or equal to the price of grey cloth:

210t polyester taff black at 1.65 yuan / m, 240t spring Asian White at 1.90 yuan / m, 300t spring Asian White at 2 yuan / m, 75D silk at 2.20 yuan / M

"At present, the price of dyeing fee and grey cloth is at the low level over the years, but I dare not hoard more, mainly because I am not sure about the market in the second half of the year." A trader in Wujiang said.

In addition to the high stock of grey cloth, the following July and August are the traditional off-season. In this year's special market, production reduction has become a common means for grey cloth enterprises to save themselves. This summer, perhaps more enterprises will join in the production reduction.