Although the Lantern Festival is over as soon as the Chinese New Year is celebrated, weaving manufacturers have not fully started because market orders have not yet begun to be issued and factory workers have not yet been fully in place. However, even so, manufacturers have already received orders one after another, and the order quantity is not small.
“We received orders for nearly 1 million meters of monofilament rayon within three days of starting work, and now it’s been more than a week since we started work, and the total has totaled about 2 million meters,” said a textile boss.
Recently, there has been an endless stream of news about receiving orders in the market, but while receiving orders, many old problems that existed in previous years have still not been alleviated.
Low price is still the key to receiving orders
Last week, raw material prices had a good start, but fabric prices have not improved. Although there are rumors of price increases, there are very few actual price increases.
“Two million meters of monofilament rayon were ordered by several customers. The price is 3-4 yuan/meter. The profit is very small. The average machine efficiency is only 50 yuan/day. They are all based on volume. Now the price of gray fabrics cannot rise at all. Nowadays, market prices are generally low, and if products are not popular in the market, we dare not increase prices.” said the textile boss.
Last year, textile bosses had a hard time even if they had orders due to low prices. The “tradition” of low prices has been extended to 2023. However, what has changed is that this year there is no loss-making sales method below cost price. According to Judging from the current order situation, I believe it is just that the time for price increase has not yet arrived.
The current market situation is not suitable for textile bosses to raise prices. Even if costs have increased, demand has not fully increased. Price increases will only make it harder to receive orders. Although many fabrics in the market show signs of hot sales, in fact, they are not The orders have not yet been placed, and most of them are fabrics that textile bosses are optimistic about. The busy work at the beginning is basically because the orders from the year before have not been completed yet, and there are not many companies that can receive orders immediately after the year.
Inventories are high, production is cautious
According to the inventory days of sample companies monitored by Silkdu.com, it can be seen that the current inventory days of local weaving companies are still at a high level of 35.5 days. Such inventory is not optimistic for weaving companies and has certain obstacles to subsequent development. Now most The factory has not yet fully started operations, some workers have not yet fully arrived, and the looms are basically in a half-on and half-off mode. Assuming that the looms are fully opened in the later period, the inventory will increase significantly, and the problem of overcapacity will once again push the weaving enterprises into the abyss.
The problem we are currently facing happens to be this. There are no hot-selling fabrics in the market, and the companies that receive orders are just regular operations after the new year for old customers. However, there are many manufacturers currently producing stocks. It is obvious that there are no Before determining which fabrics are hot-selling, everyone has already started stocking up, but stocking up in advance in the current market is really risky.
If there is too much inventory, funds cannot be transferred, and the inventory can only be disposed of at low prices. Then the price of fabrics will be difficult to turn around. Under this series of vicious circles, the same mistakes will only be repeated, with some products having no characteristics, no advantages, and no support from regular customers. It will also be difficult for textile companies to turn around.
Although the policy is liberalized, demand will definitely pick up, but today’s society pursues less but more refined, and popular things will be eliminated sooner or later. The same is true for fabrics. Only continuous improvement of products is the best choice to survive today.
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