“We placed an order of 100,000 meters of eight-piece satin with a manufacturer and required it to be completed within a month. However, the manufacturer gave us a reply that it was not possible. We had to place an order of 200,000 meters to complete it within the specified time because we wanted to retain upstream customers. We can only load 200,000 meters, and the other 100,000 meters will be used as inventory,” said a trader.
Is this forced buying and selling? Or is there something unspeakable?
In other words, I want 100,000 meters, but you must sell me 200,000 meters, but I have no choice but to accept it. So the question is, since you can’t buy as much as you want, why not change it to another manufacturer?
After communicating with the weaving manufacturer, it turns out that the weaving boss is not unreasonable. It is indeed difficult to complete 100,000 meters according to the delivery time required by the trader. “Because for 100,000 meters, there are only 20 pan heads in total, and even the 100,000-meter turntable is difficult to complete.” Including the production of pan heads, all 20 machines are put on the machine. One month of production time is too late, because the front line needs to be added with glue. For example, if it is 200,000 meters, a total of 40 pan heads will be needed. That month will definitely It can be completed within 30 days,” said the weaving boss.
Therefore, it is not that this weaving manufacturer is forcing itself on others. In fact, it would be the same result if it were replaced by other manufacturers. The risk of stocking up in the market is so high now that no weaving manufacturer will easily stock up on some gray fabrics that are not popular at the moment.
Weaving and trade dilemma
Today, the market environment is in an extremely polarized situation. If the market is not good, there will definitely be a small number of textile bosses who will strongly refute it. The same is true for weavers and traders. Weavers envy traders the trouble of not having inventory. Likewise, traders I envy the weavers and manufacturers for their direct sales, but it is actually very difficult for both of them under the current situation.
“Although our factory is very busy, orders are basically from old customers. The advantage of old customers is that they are stable, but the disadvantage is that they have to negotiate prices with you. The orders may have been scheduled until July or August, but the profits are really very small.” said the weaver.
“Our customers are basically clothing merchants. They don’t pay attention to your cost. They set the price. If they don’t agree with them, they will simply switch to another company.” The trader said.
Traders have to face difficult upstream customers and depressed prices, while weavers face inventory troubles and high costs.
Hold on, don’t panic
According to the operating rate of sample companies monitored by Silkdu.com, the current average operating rate of local companies is 74.8%, which has improved from last week’s data. It also shows that the current market order situation is relatively good. Of course, the inventory days have also declined. Now this This stage happens to be the alternation between low and peak seasons. Generally, manufacturers are rushing to produce and ship orders received in the early peak seasons.
“Our machines are basically running at more than 90%, but we do not produce inventory. We basically produce whatever orders are placed by customers.” The textile boss said.
At present, in addition to spot manufacturers, many weavers are based on the main production model of producing what products and quantities according to the orders they receive. They do not predict the hot-selling products in the later period and produce stocks for later sales as usual. Faced with unstable raw material prices and uncertainties, With sufficient market demand and fabric prices that cannot be raised, textile bosses must hold firm.
No matter what the current market situation is, I believe that all textile bosses are already invincible after the disaster experience in the past few years.
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