Recently, the editor has heard many cloth bosses complaining that the market is really sluggish and they are all waiting for the holidays! I don’t know when it will get better… Maybe it will get better after a wave of people quit the textile industry…
So is this really the case? Has the market not started yet? Or is it just Boss Bu’s “exaggeration”?
Polyester factories have reduced production by 2,500 tons/day, and polyester filament production and sales have fallen again
Some time ago, the price of polyester filament continued to fall, production and sales continued to be sluggish, and profits continued to Being compressed, inventory gradually accumulates. On November 10, after the polyester filament 4+2 meeting was held, polyester manufacturers began large-scale production reduction measures, with the production reduction reaching 2,500 tons/day.
As soon as the news of the production reduction came out, it indeed stimulated downstream buying momentum in a short period of time, and production and sales once again exceeded 100. As time goes by, the price trend of the polyester filament market has become stagnant again, and the purchasing enthusiasm of the downstream weaving market has been suppressed. On November 19, the overall production and sales of the polyester market fell back to the level of 50-80%. In this regard, the editor visited the market and interviewed several cloth bosses. Most of the cloth bosses said that they were unpredictable about the future market and adopted a conservative attitude when hoarding raw materials.
Weaving manufacturers have entered a state of accumulated inventory
The sales situation of gray fabrics in the weaving market is not optimistic either. Weaving enterprises have entered a stage of accumulated inventory, and the market has not been able to sell goods smoothly. According to data from China Silk City Network, the current gray fabric weaving inventory in Shengze area is 33 days, and the inventory of gray fabric can be said to be at a high level.
Manager Wu of Zhenze Fuli Silk Weaving Factory told the editor that it is almost the end of the year and the factory still has a relatively large stock of gray fabrics. Yes, our first task now is to remove this part of gray fabric inventory.
The order is almost completed, now waiting for the reorder
St. Product Textile Trading Company is a trader that deals in various fabrics and linings. Manager Chen of the company said that we are in the business of making orders, taking gallbladder fabrics as an example. The large order has basically been completed, and now we are waiting for the reorder. As well as first-tier brands developing fabrics for next year. It can be said that we have entered a “half-vacation” mode.
Suzhou Ninghan Textile Co., Ltd. is a company that makes pongee and bile fabrics. They also said that this year’s orders ended relatively early, basically at the end of October.
The overall market situation this year is generally not as good as last year, and orders are ending earlier than last year. Companies that make orders say that because they have stable customers and a certain amount of orders every year, they don’t have to worry about orders. The main thing is profits, which are getting thinner and thinner due to the sharp rise and fall of raw materials. In comparison, the orders of market goods manufacturers and traders this year are not optimistic. In addition, the recent environmental protection policy has come again and the spray reduction plan has come again. Therefore, many manufacturers are preparing to “holiday for the New Year” in advance.
The market has overcapacity. Do we really need to withdraw from a number of factories to make the market better?
Many cloth owners in the Shengze weaving market said that the current business is getting more and more difficult. One of the important reasons is overcapacity and there are too many manufacturers of the same type. The market is only so big, and if there are too many people sharing it, you won’t be able to make much money. Coupled with the outward transfer of water-jet looms, when the transferred production capacity increases, the local gray fabric market will be even more impacted!
No wonder some cloth bosses said that the market will only get better after some factories withdraw and production capacity is balanced. Although this is a bit exaggerated, it is not unreasonable.
Conclusion
Taken together, the market situation is indeed not very optimistic. The negatives outweigh the positives. We can only hope that the market will get better next year. Most cloth bosses also said that there is still hope. At present, they can only take one step at a time and remove some inventory first, and look forward to the market situation in the first half of next year!
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