“We previously received a foreign trade order of 100,000 meters, but we haven’t put it on the machine yet…” the textile boss said.
Before the National Day, some textile bosses were complaining that market orders were gradually decreasing, and they were planning to take a holiday if they had no work at hand. But why are they not in a hurry to produce even if they have orders?
Raw material prices are too high
As we all know, the price of polyester yarn started to rise from the end of August, and the price continued to soar until it gradually fell back at the end of September. It can be seen that the high cost and current polyester price do not allow textile bosses to purchase and produce blindly.
“The prices for foreign customers are fixed. No matter whether the cost is cheap or expensive, it will always be based on this price. If the price of polyester yarn has not dropped to a low level, it will definitely not be produced at this time.” said the textile boss.
As soon as crude oil fell and the market opened after the National Day, PTA futures plummeted 256 points, and the internal price also fell by 245 yuan/ton. The price of polyester filament also fell for three consecutive days, with a cumulative drop of 400-500 yuan/ton.
Taking POY as an example, the lowest price this year was at the end of June, quoted at 7,330 yuan/ton, and the current price is 8,050 yuan/ton, with a price difference of 720 yuan/ton. Compared with September, the price of polyester yarn has dropped. But compared with before the price increase, the current price is indeed less friendly to textile owners. In the current textile environment, of course, if you can make more profits, it is indeed reasonable for textile bosses not to take advantage of the machine.
However, prices fall as fast as they rise. Textile bosses believe that reasonable prices are still a bit far away.
No order in hand
In addition to the fact that the price of raw materials is still at a high level and the textile boss continues to wait and see, the lack of orders on hand is also one of the reasons why the textile boss has not yet started the machine. “Anyway, there are not many orders, so why not start production slowly?”
It’s not that there are no orders, it’s just that there are fewer orders. If the production is too fast and no new orders are placed in a short period of time, the textile boss will run the machine but not know what to produce during the “window period”, which will only make things worse. More innocent inventory generated. In this vicious cycle, life for textile bosses becomes even more difficult.
According to the operating rate of sample companies monitored by Silkdu.com, although it is still in the peak season of the Golden Nine and Silver Tens, the operating rate of local weaving manufacturers is not high, currently around 75.8%, which is not high for the peak season. High, which also proves that the current order situation of textile bosses is indeed average.
It’s easy to say anything if the customer is not in a hurry
But no matter what the situation is, as long as the customer is not in a hurry, the textile boss will not be in a hurry to place an order, unless the factory is too busy, but in the market in recent years, manufacturers will not be too busy. But from the side, if customers are not in a hurry, it means that these fabrics are not just needed, and there is not much real demand. If they are fabrics that will be used soon, they must have been anxious to get them on the machine.
The market after October has not seen the so-called peak season prosperity. Many textile bosses are still relatively tight on orders. Although there is Double Eleven and the blessing of the foreign Christmas season, the order situation is still not as good as in previous years. The scattered small orders have forced textile bosses to reduce the number of machines they run. Some textile bosses said that many workers had resigned due to early days off, but now there are some orders but not enough workers.
For textile bosses, customers are God. In addition to dealing with price issues with customers, the more important thing is to serve customers well. Of course, when it comes to production and delivery, if customers are not in a hurry, naturally textile bosses will not be either.
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