The weather is very hot. During the off-season, weaving manufacturers have taken advantage of the high temperature to reduce the number of startups and shutdowns. Currently, the startup rate in Jiangsu and Zhejiang has dropped sharply. The startup rate of sample companies monitored by Silkdu.com is currently only about 54%. This is very important for weaving manufacturers. What does it mean?
“I’m done with it. I don’t want to take orders that are losing money!”
Although it is the off-season, there are still orders, and the suspension of production by weavers has caused considerable losses to traders.
Traders “lost” foreign trade orders
“Raw material prices are currently unstable, and there are many varieties on the market. Many manufacturers don’t know which varieties will be best-selling in the future. It’s difficult to maintain capital for bulk goods. Several large local manufacturers have learned this lesson and have taken advantage of holidays to reduce production during hot weather. For the unprofitable products Orders simply stopped being accepted, which led to several traders complaining that sea freight rates had dropped, but unfortunately the orders were gone,” said a person in the textile industry.
Indeed, the recent news of holidays and production cuts has been spreading in the textile market. Weavers have stopped production and cut production. Traders must not be able to take urgent orders. During the shutdown of weaving manufacturers, workers took holidays and took orders that required their own payment. , it is better to refuse directly.
Traders have also lost a lot of orders due to the shutdown of weaving factories.
The holiday for weaving manufacturers is a good thing for the textile market, which can completely rectify some “evil trends” in the market.
The chaotic market should be rectified!
Rectify the market from the source, put an end to the bad habit of “low prices”, and restore harmony to the textile market.
“There is no profit anymore, and it cannot be reduced any further. There will definitely be no further price reductions in the future. In the future, customers’ orders will not be accepted if the prices are lowered.” A textile boss said decisively.
Weaving manufacturers relied on the low-price order model to confuse the prices of fabrics and gray fabrics on the market. As a result, gray fabrics that cost three or four yuan can only be sold for more than two yuan. This phenomenon has lasted for three years. Initially, the inventory was sold at a low price due to excessive inventory, but now the buyers’ “black hand” of low prices has reached out to the fresh billet.
The price of raw materials fluctuated. Weavers were reluctant to accept orders in order to keep their machines running normally, while buyers kept pushing down prices. Finally, under the influence of the off-season and high-temperature days, major manufacturers began to reduce production and take holidays. This is also the beginning of market consolidation.
Fabrics are no longer cheap
Judging from the current tough approach of weavers, as long as they insist on rejecting low prices, fabric prices will definitely return to normal levels in the second half of the year.
The current fabric price in the market is indeed as low as the normal limit, and even textile bosses can accept it for less than the cost price. It is really outrageous.
However, due to the Russia-Ukraine war in the first half of the year, crude oil prices have been at a high level. They have fallen back a bit but may rise again, but they are still stable. The price of raw materials has been unstable before. How to stabilize the price of gray cloth? Only when weaving manufacturers grasp the price and stop compromising to low prices will the price rise.
Moreover, there will be the peak season of Gold, Nine and Silver in the second half of the year. As long as the demand still exists, orders will be placed. With this additional attribute, fabric prices will definitely rise steadily.
In short, no matter whether there is a wave of market conditions in the second half of the year, weavers must put an end to low prices so that the market can return to normal.
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