How textile companies deal with the chaos in the chemical fiber weaving industry

Although the market is developing in a good direction, the industry has repeatedly warned of reasonable industry progress. However, after the Spring Festival, the price increase caused by raw materials and auxiliary materials continues to be a storm, and the industry chaos caused by the price increase is beginning to ferment. Fabric people still need to keep their eyes open, after all, prosperity is the way to go.

Today
1. Raw materials are skyrocketing, and fabrics are facing difficulty in raising prices

Since the end of 2016, the rising prices of raw materials have overwhelmed weaving companies. What is even more sad is that after the Spring Festival, another wave of price increases is about to begin. The market is also unanimously bullish on the market for chemical fiber raw materials. The upward trend continues throughout the year.

Looking back at the fabric market, it is undeniable that the current situation of weaving companies is actually improving compared to previous years. However, the increase in raw materials has not only failed to cause the price of natural cotton fabrics to rise simultaneously, but has also caused huge cost pressure. It has made business difficult.

Other natural cotton markets after the Lantern Festival have gradually returned to normal or even higher than in previous years. At present, most weaving companies are accepting orders from the year before, and their own inventories are gradually increasing, which makes them worried about the market outlook. . This does not rule out the active sales behavior in the market. Although the price has not dropped, the increase in volume has also attracted the participation of more traders. This process of price increase ultimately did not allow the natural cotton companies to reach the selling price they wanted.

“In fact, raising prices is not our original intention. After all, this price adjustment may increase the risk of losing customers. However, raw materials are rising every day, and dyeing fees are also high. We are under real cost pressure. “It’s too big,” said Mr. Chen, the owner of a company in Wujiang. “Take 228T nylon Taslan as an example. In May last year, our purchase price of natural cotton cloth was 5.2 yuan. Now we purchase it for 6.1 yuan. This increase is nearly 1 yuan, but the quotation we give to customers cannot go up that much. It is only 50 cents at most. We have to bear the remaining cost increase ourselves.”

2. The “funnel-type” structure of printing, dyeing and weaving production capacity is seriously unreasonable

The printing and dyeing industry is a key link in the deep finishing of fabric products. It used to be a bottleneck restricting the development of China’s fabric industry. After more than 20 years of continuous development, printing and dyeing wastewater and waste gas have become a major contributor to China’s harsh environment. The impact on the industry has led to the shrinking of printing and dyeing production capacity.

Taking Shengze, a major fabric cluster town, as an example, the weaving capacity of Shengze Town in 2016 was approximately 12 billion meters, while the matching printing and dyeing capacity was only 3 billion meters. The huge production capacity gap makes printing and dyeing The industry occupies an absolute say in weaving.

In recent years, topics about rising dyeing fees and queues at the entrance of dyeing factories have become commonplace. Unilateral hegemonic behaviors such as unexplained increases in printing and dyeing and quality issues have also made the weaving industry miserable. Now, at the juncture of the skyrocketing increase in raw materials, the increase in dye costs has given weaving companies another boost!

3. The inventory is empty and the order is there, but whether or not to accept it is a “pit”

Indeed, since October last year, the weaving market has experienced a good situation that has been rare in recent years. While the inventory was cleared, most companies also received orders for the year after. However, there is a problem with the production cycle of fabric companies. Whether it is export or domestic sales, there is an unwritten rule. That is, the orders most companies often receive this month often have to go through multiple links such as production, printing and dyeing. It takes many months to deliver the fabric products to customers, and the price of the ordered products is based on the current market price.

Since last year, the variables in raw material prices for more than one month have been too huge. Now fabric companies are already making meager profits under the pressure of cost, and if costs rise…If the price of the product remains unchanged, it is conceivable that Boss Bu may be doing business at a loss.

When the author visited the market recently, a cloth boss also joked that it seemed that the inventory was empty, the orders were there, and the business was good. However, under the sharply fluctuating market, orders were not received at all. Not answering is a “trap”!

4. The money gained from clearing inventory has turned into machines. Will the upgrading of enterprises change their lives?

There is a popular saying recently: “When the wind blows, it is still the pig that falls to death!” The downturn in the fabric market for many years has made practitioners gradually lose confidence and lose hope. However, I don’t know when, the market breeze came inexplicably, and stood at the forefront, the inventory was emptied, and the goods were rushed to be delivered…. Many cloth bosses began to lament that they finally got through it!

Under blindly optimistic expectations, many fabric bosses around me began to purchase machines or upgrade machines. On the one hand, the good market gave the company a sweet spot, and on the other hand, the weaving bosses updated The fabrics produced by the machine are indeed self-produced and no longer meet the buyers’ requirements for fabric quality, feel, and style. As they are not recognized by the market, they can only be eliminated and have to spend a lot of money to introduce new machines.

Of course, I also hope that the industry boom will really come, but I would like to remind you that under the premise that the industry prospects are not very clear, the money exchanged from clearing the inventory is turned into machines, or It is not advisable to blindly follow the trend of producing a marketable product. Please note that the upgrading of enterprise machines will put the enterprise in trouble due to changes in market conditions or products. Please think about the artificial silk back then.

Generally speaking, with the skyrocketing prices of raw materials and auxiliary materials coupled with the difficulty in raising the price of natural cotton cloth, the author tends to be cautiously optimistic about the future market. However, whether it is skyrocketing or plummeting, the bitter fruits of raw materials There’s only so much, someone has to swallow it. I still hope that the fabric market can blossom and bear fruit in a reasonable atmosphere, and cherish the growth! Let’s take stock of the four major chaos in the current chemical fiber weaving industry:

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