Looking back from May to now, relatively hot-selling fabrics have appeared from time to time in a dull market. SPH’s broken card sales are booming, with tens of thousands of meters of gray fabric rising; the demand for composite yarn and hemp is strong, even making it difficult to find the raw material POY; Sajima has received a wave of orders, and the demand in the Middle East is huge…
These gray fabrics all stand out in the dull market. The editor found that these gray fabrics all belong to the imitation silk category, which caused Let me think about it, is there any sign of hot sales of imitation silk? What is the situation this year?
Several imitation silk fabrics have become market highlights, but they are only examples
However, through tracking the market, we found that although the above hot-selling fabrics were relatively sudden, their sales did not last long and soon became dull. It is just an example and not universal, so it does not represent the sales situation of artificial silk. After in-depth research, we found that imitation silk, like other products, is tepid this year and there is no peak season at all. Especially now that we have entered the traditional off-season, the overall gray fabric market is tepid, and some imitation silk weaving manufacturers are even experiencing slow sales of gray fabrics.
Enterprise Feedback
A planning manager with 1,000 looms said that artificial silk It is particularly difficult to sell this year. Everything is unsaleable and there are no good products. It was already difficult for us to do last year, and it’s even worse this year. There are always orders, but not many and the prices are very low. There are too many varieties of imitation silk, and the most popular ones now are chiffon and tangled.
The price of gray cloth dropped by more than 30%, and the profit dropped by 10%
With this year’s market situation, it is impossible for the price of gray fabrics not to fall, and the price of imitation silk has also dropped significantly. For example, 75D/24T chiffon could be sold for around RMB 3.2 last year, but this year it can only be sold for around RMB 2. Even for larger orders, the price will be lowered, and there is basically no profit.
The price of gray fabrics has dropped, and coupled with sluggish sales, manufacturers have sold more goods at low prices, and profits have naturally followed suit. According to some manufacturers, profits from imitation silk gray fabrics have dropped by about 10% this year compared with last year. Even for some fabrics in stock, the selling price loss is around 0.5-1 yuan/meter.
Some manufacturers have been selling imitation silk recently
Although the overall performance of the market is stagnant, there are some companies with better sales performance. In such a huge market, in the post-epidemic era, competition among manufacturers has become increasingly fierce, and it has become increasingly obvious that some people eat meat while others drink porridge. For example, Mr. Yang, who mainly sells domestically, said that this year’s artificial silk has been ups and downs. Sales were not good for most of the previous month, but it has gradually improved in the past two days. There are almost millions of meters of orders, and various varieties of artificial silk have been released one after another. goods.
Imitation silk has been in hot demand recently. Is it an off-season sale?
According to feedback from manufacturers, the peak season for artificial silk is from March to May in the first half of the year, while summer is the off-season. Things will get better again from September to November. Mr. Yang revealed that the sales of artificial silk have improved recently, and the editor also heard about the recent hot sales of Sajima. These two aspects have to make the editor question, since artificial silk has entered the off-season, why will it improve in the near future?
The answer given by Mr. Yang to the editor is that market orders have improved due to the recent recovery of foreign trade, which has led to this somewhat abnormal off-season sales phenomenon. Sajima itself has a large production volume and is not expensive. In the early stage, foreign trade was stagnant due to the impact of the epidemic. Currently, trade in the Middle East has resumed. Since the price of Sajima is currently very low, the Middle East is purchasing it in large quantities. Strictly speaking, the current partial improvement in imitation silk cannot be said to be counter-seasonal sales. Because imitation silk has become a fabric suitable for all seasons, the thickness of the fabrics used in summer and winter is not much different. Even thin fabrics can become thick fabrics through post-finishing and compounding processes. winter. Therefore, judging from the sales of gray fabrics, there is no obvious seasonal distinction.
Manufacturers have gradually joined the ranks of reducing production and suspending production
Simulated silk This is a conventional product. The manufacturers in Jiangsu and Zhejiang are very large. In addition, the current market shows a situation of high production and low demand, which puts weaving manufacturers into production difficulties. Some smaller enterprises, including weaving enterprises with relatively weak capital turnover capacity, have begun to reduce operating hours. As the off-season deepens, many manufacturers have revealed plans to reduce production in the later period. Especially once the weather becomes hot, more companies may reduce production.
Enterprise Feedback
Manager Li of an integrated industry and trade enterprise that specializes in imitation silk told the editor that the factory’s current operating rate 80%, has dropped. At present, I only have some loose orders, and I am working on orders of several thousand meters, which is not ideal. If there are no orders in the future, the opening rate will definitely drop again.
In addition to successive production cuts, some companies in the market also choose to suspend production for a period.��In this way, we can cultivate our health and recuperate to alleviate the problem of overcapacity. This is the case for a factory with 40 looms. Manager Shen, the person in charge of the company, revealed that all production has been suspended since June. Production is expected to resume from the end of July to early August. Half of the looms will be restored first, and the operating rate will be adjusted based on market conditions. The machines only produce some of the most conventional chiffon, tangled and other products, and sales are not ideal. The trade is mostly dominated by twisted artificial silk, and the situation is relatively good, so the factory will stop production for a period of time to digest some inventory.
Summary
In general, the size of artificial silk is huge and the market competition is fierce. It is difficult to sell it on a large scale. In particular, the sequelae caused by the epidemic are serious, and there is uncertainty about whether the textile market can recover in the second half of the year. Mr. Ji is a little pessimistic about the future: “It will be difficult to improve artificial silk in the future, not only because of the epidemic, but also because there are too many manufacturers and the competition is too fierce. Our company has recently applied for a GRS certificate and is preparing to transform into recycled fabrics. .”
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