I still remember that two days ago, a textile company sold gray fabric + gall fabric at a low price (it fell to 0.8 yuan/meter. When low-price sales come back, will you still take over?). Inspired by this, the editor specially investigated some gall fabrics. The production and operation of cloth enterprises. During the survey, many textile bosses lamented, “The price of gallbladder is one day at a time, and we are selling at a loss every day!”
Flour is more expensive than bread, and profit margins are being squeezed
At the time of the alternation of “gold, three, silver and four”, the price of crude oil has been soaring, driving the entire polyester industry chain to become prosperous. Affected by this, the price of polyester filament has continued to rise, with FDY150D rising from 8,150 yuan/ton to 8,600 yuan/ton, POY150D rising from 7,550 yuan/ton to 8,025 yuan/ton, and DTY150D rising from 8,950 yuan/ton. It rose to 9,400 yuan/ton, and the increase of various varieties was close to 500 yuan/ton.
As downstream resistance gradually heated up, after a brief pause for consolidation, polyester prices partially loosened on April 10. As polyester manufacturers in Jiangsu and Zhejiang started promotion mode, polyester prices were lowered on April 11. As of now, FDY150D is quoted at 8,350 yuan/ton, POY150D is quoted at 7,820 yuan/ton, and DTY150D is quoted at 9,200 yuan/ton. The price increase has fallen back to around 250 yuan/ton.
Judging from market feedback, this increase in raw materials has not led to a simultaneous increase in fabric prices. Some weaving companies have no choice but to say that this wave of rising costs will most likely have to be absorbed by the companies themselves. As the most conventional and low-end variety in the fabric market, gallbladder fabrics originally have low profit points. Frequent fluctuations in raw materials in the recent stage have caused many gallbladder companies to fall into a passive situation. The raw materials are obviously purchased at a high price but they have to produce low-priced products to sell. It is a frustrating loss! A weaving company lamented that it was losing 10 yuan a day on water-jet looms such as 400T pongee and 210T polyester taffeta. At present, it seems that no product with conventional lining materials is profitable!
It is obviously the traditional peak season, but throughout the textile market, many companies have reduced prices and sold goods. Price reductions mean reduced profits. Under such a situation, the situation of Danbu, which already has meager profits, will become increasingly difficult.
Overcapacity leads to involution, the only thing that can be done is to reduce losses
Different from other fabrics, the production threshold of gallbladder fabric is very low, which leads to the huge number of manufacturers producing gallbladder fabric in the industry. The market size of gallbladder fabric is also extremely huge, with many textile companies stocking tens of millions of meters in their warehouses. of inventory.
Through research, we found that the biggest complaint of textile bosses about gall fabrics is that there are too many stocks in the market, so the price cannot go up, and they may even lose money every minute!
Here, we have to mention a commonplace topic – overcapacity. Data show that as of the end of 2022, my country’s total output of chemical fiber filament fabrics reached 59.5 billion meters, a year-on-year increase of 6.82%. In the context of capacity expansion and rising output, competition within the textile industry is becoming increasingly fierce. To make matters worse, as the concept of “light down” becomes increasingly popular, more and more clothing brands are shifting their focus from ordinary gallbladder fabrics to gallbladder-free ones. Velvet fabrics have caused the demand for related fabrics to rise, directly seizing the market share that originally belonged to gallbladder fabrics.
According to market practice, the second half of the year is the home of gallbladder sales. In the first half of the year, the gallbladder market can easily fall into the dilemma of “high inventory, low demand”. At this time, gallbladder companies will more or less have some problems, such as too much inventory that cannot be piled in warehouses, insufficient capital liquidity, and difficulty in turnover, etc. wait. “As peripheral production capacity increases, it becomes more and more difficult to receive orders. Sometimes, rather than letting fabric pile up in the warehouse and gathering dust, it is better to sell it early to collect funds. In the face of the price war caused by involution, sell early,” said Maybe we can lose less.” Yidanbu Enterprise said.
In an increasingly transparent market environment, the price of bile cloth due to imbalance between supply and demand is not the lowest, only lower.
Postscript:
Due to overcapacity, gallbladder has been sold at a cabbage price. Nowadays, low-price competition in the textile market occurs from time to time. For conventional varieties, price increases have become increasingly out of reach. If this continues, what profits will textile companies have left?
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