The editor has recently compiled data on the manufacturing market from several organizations and used the data to better understand the current market situation. Please take a look at the data: 380T nylon, the average market price in early January was 4.5 yuan/meter, and has now dropped to 3.2 yuan/meter, a drop of 29%; 75D chiffon, the average market price in early January was 3.8 yuan/meter , the current average market price is only 3.0 yuan/meter, down 20%; King of Glory, the average market price in early January was 5.5 yuan/meter, and the current average market price is only 4.5 yuan/meter, down 18%. The editor will not list other varieties one by one. It will be more clear by looking at the table below.
From the above data, the situation of Nisi spinning this year is not satisfactory and relatively bleak, but other conventional varieties are also about half as good and not ideal. But only King of Glory, although the price of gray fabrics has dropped significantly, its sales volume and profits are better.
Recently, elastic products such as cool silk cotton, T400, and broken cards are mostly produced on 210 and 230 water-jet looms. The profits are quite generous and the shipment volume is large. Therefore, the gross profit of a machine per day (the profit involved only deducts the cost of raw materials and does not involve labor, weaving and other costs) can reach 100 yuan, or even higher. For conventional products produced by 190 water-jet looms, the gross profit per day for a polyester taffeta machine is 50-60 yuan, and the gross profit per day for a polyester taffeta machine is 10-20 yuan.
The gross profit margin of different gray fabrics differs by more than 2 times. Floods and droughts will kill you. This is the current weaving market! So why has the price of King of Glory gray fabrics dropped significantly, but the machine rate can still reach 100 yuan? The editor believes that the main reason for this phenomenon is market demand. 1 The market demand for elastic fabrics is huge and profits remain high Because the textile market was so crazy the year before and last, there was a large amount of stockpiling of conventional products from the terminal to the gray fabric end, so that this year the inventory was overwhelming , there is little demand for conventional products. Therefore, new clothing styles are mostly made of unconventional mid-to-high-end fabrics, and elastic products have become the mainstream. The daily shipment volume of gray fabrics such as cool silk cotton, T400, and broken cards ranges from tens of thousands to hundreds of thousands. More than half of the gray fabrics that are dyed in the printing and dyeing factory every day are elastic fabrics. Elastic fabrics, which are in high demand, still have a large profit margin.
2 The price of raw materials is low, and the profit margin of elastic fabric is large
The price of King of Glory gray fabrics has dropped by 18%, but the profit can still reach 100 yuan. On the other hand, this is due to the large drop in raw material prices this year. Judging from the price of polyester filament this year, the average price of each product is currently at a low level. Compared with the prices in 2017-2018, it is really at the bottom. Coupled with the sluggish market situation, the price of gray fabrics will fall sharply. However, other conventional products not only reduced the original raw material cost, but also reduced the price and sold goods based on it. Some manufacturers reduced prices beyond imagination, so profits were compressed. For the hot-selling Honor of Kings, the price only reduces the cost of raw materials, so it does not affect its profits.
Postscript
To sum up, when raw material prices are at low levels, the main factor affecting the profits of gray fabric manufacturers is market demand, so it is important to make the right products. However, weaving manufacturers cannot just see the high profits of elastic gray fabrics and follow the trend of production. They should also act according to their own circumstances.
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