We have basically no profit!
Now the price of our gallbladder has dropped by an average of 7-8 cents compared to the beginning of the year
Our inventory is more than 10 million meters! Do you still remember the once popular gallbladder? As a popular commodity in the market, it suddenly emerged as a dark horse in May 2017 and once became a “cash cow” sought after by many middlemen. But anything is popular for a while, but it cannot be popular forever. So, how will the gallbladder market be in the second half of 2019?
Gall cloth cannot be sold! The price dropped by half!
Generally speaking, there will always be a wave of market prices in the second half of each year, but this year’s situation is not satisfactory. The “Golden Nine and Silver Ten” have passed, and the market orders are also showing signs of fatigue and “lack of motivation.” The ordering speed of many products has slowed down significantly, and the shipment of gall cloth has also begun to slow down. Mr. Wen, the person in charge of a Danbu supermarket in Shengze area, said: “This year’s order volume has been reduced by half compared with last year, and the price has dropped by about 0.7-0.8 yuan/meter compared with the beginning of the year. For example, at the beginning of the year, our 292T polyester taffeta 2.1, now it only sells for 1.55.” Coincidentally, the person in charge of a company in Wujiang area that makes gallbladder fabrics, nylon fabrics, pongee fabrics, etc. also believes that the sales of gallbladder fabrics this year are not as good as in previous years. “I don’t feel that there is any improvement this year. In the summer, the sales of gallbladder fabrics were okay, but now they are not very good. There are not many orders for nylon spinning, and our gallbladder fabrics are also relatively poor. Now it is only 312T, The sales volume of 290T polyester taffeta and channel fabric is okay.”
So, what is the reason for the failure of gall fabric? Is it easy to sell?
The warm winter is expected to be strong, and the demand for down jackets is not large
The textile industry has always been “depending on the weather”, and some experts It is predicted that the probability of a cold winter this year is 0!
Therefore, the market demand for down jackets and cotton jackets is insufficient. As a combined material for down jackets and cotton jacket fabrics, the demand for bile cloth is naturally average. In addition, many clothing brand warehouses are still full of last year’s down jackets. Their orders for down jacket fabrics will undoubtedly be reduced a lot, which also results in The situation of “unsaleable” gallbladder cloth this winter has been resolved. “This winter is not cold, so the sales of down jackets will definitely not be good. In addition, a lot of inventory in previous years has not been consumed, so this type of clothing companies are not very enthusiastic about placing orders. Moreover, this year’s Spring Festival is in January, and the sales time of autumn and winter fabrics is relatively short. , it is estimated that the down jacket inventory will be cleared in the next few years, and naturally our gallbladder fabric will not be good.” A gallbladder supermarket manager said helplessly.
Other loom production capacity is released, supply exceeds demand!
According to the latest news, the production capacity of emerging water-jet looms transferred to northern Jiangsu, Anhui, Hubei, Jiangxi and other places in the past two years has exceeded the 200,000-unit mark, far exceeding the elimination of traditional textile clusters in the Yangtze River Delta region of water jet looms. The number of water-jet looms in the entire textile industry is much greater than before the “restriction of spray” action, and the explosion of gray fabric production capacity is unstoppable!
Judging from the situation of this survey, the current inventory of gallbladder has accumulated significantly, and the phenomenon of gallbladder supermarkets selling goods has begun to increase, in order to reduce inventory and capital costs. pressure. “We currently have about 10 million meters of spot stock, and the inventory is too high. Many gallbladder supermarkets on the market are selling goods, especially those from other places. The profits of gallbladder are inherently low, and we really can’t afford to sell them. In this way It also messed up the market price.” said the owner of Yidanbu. “Peripheral production capacity has increased a lot this year, and many of them are cutting prices to remove inventory and withdraw funds, basically selling at a loss. The raw materials we used before were relatively expensive, but in order to compete, we couldn’t increase the price and could only reduce profits. Sold.”
No one would think of selling the goods unless it was a last resort. Selling goods itself is a behavior that disrupts market prices. However, due to overcapacity, the market has not improved. The phenomenon of selling goods is common in the market. The price is getting lower and lower, and it is close to the price of cabbage. As a result, the industry as a whole is forced to cut prices, so what profit can the company make?
The positive news about Sino-US trade will help the gallbladder market?
Recently, China and the United StatesGood news for trade!
The spread of this news can more or less boost the confidence of the textile market, especially for cloth bosses engaged in foreign trade. “China-U.S. trade has a great impact on us. Since this year, our U.S. orders have dropped by nearly 50%. Now that Sino-U.S. relations have eased, there is no benefit for the time being, and foreign trade orders are basically after Christmas.” A US trader Dan’s courage cloth merchant revealed. “Although we are engaged in domestic trade, Sino-US trade has no direct impact on us, but it will affect our customers and ultimately us. Since the beginning of this year, Sino-US relations have divided and combined, which has also had a great impact on our domestic trade. It’s so big that many foreign traders have switched to domestic trade.” said a domestic trader in Danbu.
Overall, Sino-US trade relations have gone back and forth this year, and many foreign trade bosses said that orders have shrunk severely. It has a great impact not only on foreign traders, but also on domestic traders. Many of the end customers of domestic trade are from the United States. Due to the imposition of tariffs this year, there have been many cases of order cancellations. The good news coming out this time is undoubtedly good news for Boss Bu. However, because Sino-US trade relations have been on and off for so long, they have already developed a certain degree of “immunity” to the news. Boss Bu has also become more “Buddhist” and will not be overjoyed or sad.
Editor’s Note
In general, this year’s gallbladder market is oversupplied, and factors such as the uncertainty of Sino-US trade and strong expectations for a warm winter . As a result, the market situation of gall cloth is in a state of “unsaleable”. But as the saying goes, “There are only bad companies, not bad industries.” Of course, there are still many high-quality manufacturers with stable demand. As Mr. Xu, a cloth boss, said: “Our situation is not bad, because we mainly make high-end products. Mainly supplying some first-line big names!” Come on, cloth bosses, as long as you persist, you will always see “spring”!
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