The price of raw materials has been rising, but the price of fabrics has only fallen but not increased. The textile boss has become worried about this. Customers pretend not to understand when the price increases, but they are more alert than anyone else when the raw materials fall.
“Cotton, linen, viscose and linen raw materials have skyrocketed in recent years. In the past two years, the price was only 36,000 yuan/ton. This year, the price has soared to 63,000 yuan/ton…” said a textile boss.
The nearly doubled price increase directly increases the cost of cotton and linen products by 2 yuan/meter. But now that low prices prevail, will customers really accept the price increase?
Bargaining prices, you raise yours and I’ll cut mine.
Bargaining is probably what customers are good at in recent years. If you don’t give me the price I want, then of course there will be people who are willing to give it to me at a lower price. I don’t have to worry about not getting the cloth, but you worry about not having an order. In the end, you end up compromising. He is still a textile boss.
“The cost has increased by 2 yuan/meter, but the customer only accepts a price increase of 1 yuan/meter. It is a matter of accepting this order or not.” said the textile boss.
The textile boss who takes this order may face a loss. Moreover, if the payment cannot be received in time, life will naturally be tight if there is not enough money on hand.
But if we don’t accept this order, life will still be difficult. There is a lack of orders in the market right now. Weaving manufacturers don’t know what to produce even if their machines are running. Production is not stopped. Starting up is undoubtedly a capital expenditure. The choice between the two leaves textile bosses in a dilemma.
Costs cannot be controlled, and prices are even more difficult to control.
It is said that this cost is the key to the rise in fabric prices, but customers do not seem to take the cost seriously. Some time ago, the price of nylon fabrics rebounded rapidly, but I asked if the price of nylon fabrics has increased? The answers obtained were basically a small increase that was basically consistent with the previous period, and could not reach the height expected by the textile boss.
As you can imagine, cost is important, but it is no longer the key to rising fabric prices.
It can be seen from the nylon spinning incident in the past few years that no matter what kind of fabric is valuable once there is too much, the price of tens of millions of meters of nylon spinning stock is so low that I would rather go outside to get the goods than go to the machine in person. The reason is just that Because the cost price is not as good as the outside market price, of course, after learning the lessons of overcapacity, textile bosses are indeed particularly cautious in terms of production inventory.
According to the inventory days of sample enterprises monitored by Silkdu.com, it can be seen that the current inventory days of local enterprises are about 35.4 days, which is much lower than the same period in previous years. In the current market with a lack of orders, inventory can be well controlled. The numbers are already very good.
But even if the textile boss desperately controls the inventory, it can’t change the difficulty of fabric prices to recover. With the sweetness of selling goods a few years ago, customers naturally cannot accept “high-priced” fabrics, but the so-called high-priced fabrics are the result of the textile boss’s continuous price control to protect capital. The final bottom line of edge testing, but it is always difficult to get the approval of customers.
Therefore, even if it is “bad cloth” as long as the popularity is high and the inventory is low, there is no need to look at its cost. Chunya spinning can also have its spring. This year, it is precisely because of the saturation of domestic demand orders and the lack of foreign trade orders that textile bosses have The predicted sales volume of some hot-selling fabrics did not meet expectations. As long as not everyone has an order, there will naturally be people competing for orders at low prices, making it difficult for fabric prices to rise.
Generally speaking, the market is not that bad. Compared with having no orders to weave, the only difference this year is that profits are too low.
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