Entering July, the weather is getting hotter and hotter, but the market situation has poured cold water on textile bosses. Faced with such a market situation, will textile bosses choose to reduce production?
Through research, the answers given by most textile bosses are also very consistent, basically they will not reduce production…
Cut production? That’s definitely not the case
“We have no plans to reduce production in the future. The cost of fabrics is so high now. If we reduce it, we will only lose more money.” said Mr. Zhou, who owns 130 looms.
“The factories I know will probably reduce their wages, but not by a lot. After all, it is already very low. Anyway, many manufacturers can’t pay their workers’ wages now.” said Mr. Shen, who was doing post-processing.
“We have no plans to reduce the start of construction in the later stage.” Mr. Yue, who specializes in cool silk cotton, said.
“There won’t be any reductions in the future, and there’s nothing good to do. If the price drops again, we’ll have a holiday.” Trader Mr. Xu said.
According to the sample companies monitored by Silkdu.com, the current weaving operating rate remains at 66.5%, which is very reasonable in the off-season. However, since the start of this year, the operating rate of weaving companies has not reached the 80% level. Since the epidemic, market demand has There has been a sharp decline, and weaving manufacturers have reduced their operating rates to reduce their own burdens. As a result, the operating rate of weaving manufacturers has been at a low level in the past three years. As the textile boss said, if it decreases again, it will be a holiday.
How could there not be pressure?
In the off-season before the epidemic, textile bosses could reduce the startup rate to reduce pressure, but now it is impossible to reduce the already low startup rate, and textile bosses have been under increasing pressure in recent years.
“The main pressure now is still the financial problem. The sales of gray fabrics are slow, there is no money on hand, and customers are slow to pay back their money.” said Mr. Zhou, who owns 130 looms.
“There is a lot of financial pressure. It is a small business to begin with. Once there is too much inventory, it will be overwhelmed. The market is bad and the demand is bad.” said Mr. Shen, who was doing the post-processing.
“The financial pressure is great, the time for repayment is also increased, and the money cannot be recovered.” Mr. Yue, who mainly sells cool silk cotton, said.
“On the one hand, there is financial pressure, and on the other hand, there is inventory pressure. The goods cannot be sold and the money cannot be recovered.” Trader Mr. Xu said.
One thing that all the above textile bosses have is financial pressure. Larger-scale manufacturers have funds accumulated in the early stage, which can last for a period of time even if the payment is slower, while smaller-scale manufacturers themselves do not have that abundant funds, let alone It is said that I have encountered one or two customers who have difficulties in making payments.
Of course, another reason is that this year due to the high level of crude oil, which has led to higher costs, the prices of many fabrics have been difficult to rise. The profits made by the textile bosses are very small. The market was already not good, but now there are profits even if there are orders, which makes it worse.
More proofing? Just don’t place an order…
“There are not many choices in proofing, but there are so many in the first two weeks.” said a Zhou manager who owns 130 looms.
“There are still quite a lot of people looking for samples, but if they don’t place orders, the market won’t get better in July.” Mr. Shen, who was doing the post-processing, said.
“There are still a lot of proofs, but the market is unlikely to improve in the future.” Mr. Yue, who mainly sells cool silk cotton, said.
“There are quite a lot of samples to look for. Before the epidemic, many people came here to look for samples, but very few actually placed orders.” Trader Mr. Xu said.
Regarding the increase in proofing, the editor thinks it is very reasonable. It has already arrived in the second half of the year, and autumn and winter fabrics are indeed beginning to improve. At present, the proofing in the market is basically based on autumn and winter fabrics. In addition, due to the epidemic in the early stage, As a result, it is not incomprehensible that there has been no sampling for a long time.
Of course, it is precisely because of the epidemic that buyers are very cautious in placing orders. If the market does not go well in the future, they will only get unsold inventory.
Regarding the next market situation, textile bosses all said: “I’m afraid it will be dangerous this year.”
It should be a certainty that the market will be sluggish in July. After all, what orders can be placed in the off-season? However, the order situation in June actually increased compared with the previous period. Some textile bosses said that it was because the orders in September were placed in advance. Assuming that this is the case, then the next “financial…”Silver Ten” will also be very difficult, but the Double Eleven in the second half of the year may be able to drive the domestic demand market, and the increase in sampling may also bring unexpected surprises. The editor believes that not to mention that it is the off-season, at least September There will still be a wave of market conditions, but the premise is that the epidemic is under control.
Although textile bosses are not optimistic about the next market and believe that the market will be so flat in the second half of the year. The high costs and elusive epidemic situation are indeed very difficult, but there is still hope.
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