“The cost price of 50D glossy chiffon beaded gray fabric is 3 yuan/meter, and the current market price is only 2.5 yuan/meter. We have hundreds of thousands of meters of this kind of gray fabric in our factory, and we have to sell it at a loss. There is nothing we can do, with the current market situation, if we don’t sell, we will be locked up,” said a textile boss in Shengze area.
August is coming to an end, and it seems that the market It has not improved. Although the price of raw materials has dropped recently, many orders are still in a state of no profit. In order to welcome the “Golden Nine and Silver Ten” and make themselves have more funds on hand, many textile bosses have begun to sell their factories. The inventory is sold at low prices.
The wave of selling goods is coming, and textile bosses will lose money Sell!
A perennial problem in the textile market: inventory. I believe that almost all weaving manufacturers have this problem. Inventory is money, but it can never become money. The current market situation is an era of low-price orders. Although many textile bosses are reluctant to sell gray fabrics whose cost is higher than the selling price, if they do not sell these gray fabrics, they will only depreciate more. As the textile boss said in the above example, With the current market situation, if we don’t get rid of the inventory, we may not have the money to buy raw materials to produce new orders later.
As mentioned earlier, the current market is not bad. Compared with June and July, the order situation is somewhat lower. Orders for regular autumn and winter fabrics such as pongee and nylon, which were popular in the early stage, are now also much lighter, but this does not mean that textile bosses do not have orders on hand. “We have already received orders for October, mainly for nylon spinning. The total amount is over one million meters, but the profit is relatively low.” said a textile boss in Shengze area. It is obvious that this textile boss has no shortage of orders on hand. What he lacks mainly is profits. This is also the current situation of most textile bosses.
When will an order without profit end?
Although the market did not usher in a turning point in August, we can still look forward to the “Golden September and Silver Ten”. The market conditions in September and October during the epidemic last year were also quite impressive. Yes, many textile bosses also made a lot of money in the second half of the year. After all, the price of raw materials last year was still at a low level, and the early inventory can also make a lot of money back in the second half of the year. The situation is different this year. It seems that there are many orders in the market, but because raw materials have been at a high level, the profits of many orders are extremely low, and some are even at a loss.
However, according to the recent raw material prices, the cost of gray cloth seems to be beginning to turn around. Although the price of gray cloth is difficult to rise, the cost of raw materials can be reduced. Starting from last week , polyester prices began to slowly decline, and promotions and price cuts were launched. However, because the market was not very good, it was difficult for production and sales to reach high levels. A long-term price increase will definitely lead to a price reduction. According to the previous promotions for several consecutive months, the price of raw materials will continue to fall this time. However, if the market improves in September and October, the price of raw materials may immediately rise.
So according to the current situation, there is no profit The orders may be relieved in the near future, but unless the market is very good in the later period, the price of gray fabrics will still be difficult to rise, and eventually it will return to a state of continued low profits or even loss-making orders.
Should we stock up on raw materials due to falling prices? This issue is probably something that most textile bosses are struggling with right now. However, in the short term, there is still room for raw material prices to fall. The current price drops for polyester yarns are in the hundreds to hundreds, and the continued decline should continue for some time. , maybe this wave of decline will start to stop by the beginning of September, so now textile bosses can also stock up on some raw material stocks, and the textile growth will be fierce in the later period.
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