Before you know it, another traditional peak season has come to an end.
Regarding the performance of this round of market conditions, most textile companies expressed that it was mediocre, and some textile bosses even said frankly, “There is no such thing as ‘Gold, Nine, Silver and Ten’. This year may not even be counted as ‘Bronze, Nine, Iron and Ten’!” In the past two years, Over the past few years, the market logic of the traditional peak season has gradually become invalid and no longer effective.
In response to this phenomenon, we conducted relevant research to see what textile bosses said.
The number of looms has increased again and again, and the looms have been sold out again in the past six months.
During the survey, textile bosses expressed that the market situation was not as good as before. When asked about the reasons behind it, the most mentioned word was peripheral production capacity.
In recent years, the textile industry has experienced rounds of crazy expansion, especially after the adoption of spray restrictions in coastal areas, large-scale production capacity migration also followed.
Take a textile company as an example. From 2019 to 2020, the company gradually moved its weaving factories to Anhui, and the number of units in operation increased from more than 100 to more than 300. Relevant data also show that as of the end of 2022, the scale of looms in my country’s filament weaving industry reached 836,000 units, including 770,000 water-jet looms, a year-on-year increase of 5.48%.
It is speculated from this that it is only a matter of time before the scale of domestic looms exceeds one million units. No, a new round of statistics has verified this guess.
According to statistics from the China Textile Machinery Association, major domestic manufacturers sold a total of 4,600 high-speed rapier looms from January to June 2023, a year-on-year increase of 24.32%; sold 14,000 air-jet looms, a year-on-year increase of 14.75%; and sold 25,000 water-jet looms. Taiwan, a year-on-year increase of 4.17%.
Faced with the explosive growth of peripheral production capacity, the person in charge of a certain weaving company sighed helplessly, “Since the threshold for engaging in filament weaving is relatively low, you can enter this industry on a small scale by spending only a few million. In addition, the difficulty of production is not It is very high and the factory can be put into operation in a short time. As the number of entrants continues to increase, competition in the industry will naturally become more intense.”
The relationship between supply and demand has deteriorated, and the industry has plunged into crazy involution
After the substantial expansion of production capacity, the overcapacity problem in the textile industry has become increasingly serious. After all, judging from the current situation, the recovery of consumer demand is not optimistic. Under the premise that demand is suppressed, excess production capacity can only further worsen the relationship between supply and demand.
Relevant people analyzed that “in the next 1-2 years, the oversupply situation in the textile market will be difficult to improve.” In this context, textile companies with serious homogeneity can only be forced to fall into the trap in order to grab orders and maintain normal production operations. roll.
During the preliminary research, a textile boss lamented, “There are more than a dozen people quoting for one order!” Roll pricing has become a routine practice in the industry. In addition to facing low-price competition from peers, textile companies also face price-cutting behavior from customers. Taking nylon four-way elastic as an example, during the negotiation process, the customer’s price reduction range has exceeded 0.2 yuan/meter.
Therefore, even during the period when raw materials were rising, fabric prices remained unchanged, and with the support of low-price sales, there was a faint trend of steady and steady decline.
The person in charge of a weaving company said, “The pressure brought by peripheral production capacity is too great, and the living space of local enterprises is constantly shrinking. First, the costs of peripheral products are relatively low, and it is easy to form a scale effect; secondly, the government is trying to attract Investments also provide a lot of subsidies and dividends; finally, the pressure on environmental protection there is not that great.”
As he said, the menacing Xinjiang billet at that time caused quite a stir in the industry.
How to solve the problem of production capacity?
Taken together, dealing with overcapacity and improving product competitiveness are the first choices of textile bosses. “We can no longer focus on conventional fabrics. Only when we can make things that others cannot make will we be competitive.” A textile boss said.
</p
