Last week, the textile market was booming again, and the gray fabrics were sold smoothly. However, the editor couldn’t help but want to ask, have all these gray fabrics really been sold?
When the editor visited the market, some fabric bosses reported that although the goods of gray fabrics from the weaving factory were very good last week, some of the gray fabrics were actually brought from the factory to traders, which is equivalent to the fact that the fabrics are still in Shengze, and even the door is closed. Not out! To put it bluntly, it is what we often call back and forth, and the middlemen make the difference.
Traders profit from the price difference
In recent years, the most popular fabrics on the market are elastic fabrics. When it comes to a certain specification, it has to be 75D high elasticity. This fabric has a wide range of uses and is suitable for all types of clothing, such as shirts, jackets, jackets, down jackets, cotton clothing, etc. It can be produced in all seasons and has a large demand all year round. Therefore, gray fabrics are shipped frequently and are the best way for traders to make a profit. Good variety.
Recently, a batch of 75D high-elastic gray fabrics were purchased on the market at a price of 1.15 yuan/meter, and then sold again at a price of 1.28 yuan/meter. After one pass, the price difference of 0.13 yuan/meter was easily obtained! When can a weaving factory make such a profit? With such a large investment, a profit of 0.1 yuan/meter is already very rare.
Of course, it also takes time to earn the price difference easily. Starting from October, the market conditions began to weaken, and the inventories of weaving manufacturers gradually increased. However, the “Double Eleven” did not bring large quantities of orders, causing factories to rush to sell goods. Especially towards the end of the year, there are more cash withdrawals, so prices are lower than normal. Furthermore, with the sudden drop in weather last week, market demand suddenly increased, causing the price of gray fabrics to rise accordingly, which resulted in such a large price difference.
Terminal clothing consumption is slow and it is difficult for weaving factories to destock warehouses
Although there was indeed a wave of orders last week due to the influence of the weather, some traders also stocked up. In any case, for weaving manufacturers, the inventory is really gone. But we need to be vigilant, not to be misjudged by this wave of market trends in the future. According to sample data monitored by China Silk City Network, the inventory of gray fabrics in Shengze has been maintained at around 35 days recently. This wave of market conditions has caused manufacturers to have a tendency to reduce inventory, but the 0.5-day inventory can be said to be minimal. At most, it allows them to have a temporary turnover of funds.
In terms of terminal clothing, the “Double Eleven” shopping festival period is the best period for recent sales, but the clothing cycle conversion speed is relatively slow. Currently, the new models that have been ordered as early as the first half of the year are sold, and most of them are re-orders and replenishments in the later period. Order and quantity are also determined based on sales. Therefore, some garment factories reported that either the order volume on hand has shrunk, or the early fabrics have not been fully digested, and there are not many orders for fabric companies, which makes it difficult to destock the fabric market in the short term.
Postscript
When the industry enters the “cyclical off-season”, all links will face a harsh survival of the fittest. Although the proofing and small orders of autumn and winter clothing fabrics in the current market are better than in the previous period, small and medium-sized batches have become the mainstream of the market, and market orders are also uneven. The current market seems to be “ready to move”, but maybe it is just everyone’s expectations.
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