Market orders continue to improve? Is May busy?
Entering May, many textile bosses said that the market conditions were good and there was no sign of a decline. The machines in the weaving factories were still running at full capacity, but the editor heard that some manufacturers were going on holiday.
Some are happy, some are sad
“We are going to have a holiday in a few days. The price of raw materials is unstable. If we continue to produce, we will be exhausted.” A textile boss who specializes in pongee spinning said.
“There are basically no orders now. Half of the machines have already started to produce inventory. We will reduce the number of starts at the moment. If orders continue to decrease at the end of the month, we will have to stop for a while.” Another textile boss who specializes in polyester taffeta said.
It seems that not all weaving manufacturers have good orders, and the problem of polarization is still difficult to alleviate. It is understood that most of the weaving manufacturers who want to take a holiday produce conventional fabrics without their own characteristics. Now the off-season is coming. Although the order situation is not bad, the popularity of conventional fabrics is definitely not as good as in the previous period. There are so many products such as polyester taffeta and pongee. The price in the early period cannot go up, and in the later period, raw materials with uncertain prices are being used. For these manufacturers who produce so-called “high-priced” gray fabrics, taking a holiday may be the best choice now.
Who can understand the dangers of inventory?
I believe everyone still remembers the inventory situation three years ago. According to the inventory days of sample companies monitored by Silkdu.com, the inventory of local textile companies was once as high as 43 days in the same period in 2020, and in August it was even more terrifying, reaching 45 days. At a high level, in the later period, inventory fell back through low-price selling, which reduced the pressure on textile bosses, but what they got in return was endless losses. Today, the inventory days remain at 34.9 days. It can be seen from the inventory situation that the sales situation during the peak season is actually not very good. The main reason is that the weaving manufacturers control production and the inventory rises slowly.
In the past, there were no orders in the off-season of the textile market. In order to keep the factory running normally, the bosses could only produce inventory. However, although the market in the past could not predict which fabrics would sell well, there was still a general direction. The hot-selling products now are really It’s hard to guess.
In addition, due to the “sequelae” of the early low-price sales of inventory in the market in recent years, the price of some conventional fabrics, even fresh blanks, is hovering on the edge of losing money, which puts textile bosses in a dilemma.
Whether May will be red or not is up to them.
“Our orders are still good. From the end of the New Year to now, basically the startup rate is above 90%. There was no holiday before May Day in order to rush the orders.” The textile boss said.
“We have already received orders in October. There is no off-season or peak season. It has always been good.” said a textile boss who specializes in outdoor fabrics.
The above statement by the textile boss is completely different from the previous ones. Some people are saying that the market was really good in the first half of the year, while others are saying that it is really not as good as in previous years. Now everyone has different opinions on the market. Who can It doesn’t matter, the market environment cannot explain how everyone’s market is going. According to the current situation, the market order situation is relatively stable, and there is no situation where there is no order to weave. There are only a few good orders, and there are no orders. The production situation of most manufacturers is relatively stable, so whether the market can usher in a red May is actually a very contradictory question. In the end, it still depends on the enterprises themselves. Even if the market falls later, it is reasonable. After all, June is the traditional off-season.
The current phenomenon of production suspension and production reduction in the market has its own rationality. After all, there are still uncertainties in both costs and demand. Rushing to stock up on goods will only push you into a “desperate situation.”
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