As crude oil continues to rise, raw material prices are also rising. In the past month, the price of polyester yarn has increased by more than 1,000 yuan/ton. However, the increase in fabric prices has been smaller. Many orders are still only at breakeven. As a result, textile bosses are living a good life. Still not well off.
However, things always turn around. The textile boss makes a little profit by reselling raw materials…
Selling cloth is worse than selling raw materials
“We had an order last month. The customer canceled it for some reason, but the raw materials had already been purchased. The factory doesn’t need these raw materials at the moment. We sold them back and made a profit of several thousand yuan in price difference.” the boss said.
It is true that you cannot make money selling fabrics in this market now. Although fabric prices have rebounded to varying degrees, they cannot keep up with the increase in raw material prices. On the contrary, you can make money by selling the idle raw material stocks in factories. Income.
The market has entered the off-season, and the general environment has clearly felt the decrease in orders. Although this year’s peak season is also very deserted, but it may also be affected by the off-season atmosphere recently. Textile people are not very happy to sell cloth, regardless of the people selling cloth on the road now. Trucks are arriving one after another, and they are actually all orders for May. The number of new orders dropped significantly in June.
However, the price of this raw material may not drop in the short term. Due to inflation and war, the price of crude oil will only get higher and higher. Polyester yarn has been rising for almost half a month, and it is still unknown when it will fall back.
The epidemic can be said to have reduced the demand by half, and with the arrival of the off-season, the demand has been reduced by half. In fact, there are still orders, but if we use the current raw material prices to produce it, we will definitely not make money, and we may even lose money. We have been in a state of Under such a cycle, all textile bosses will close their doors.
It’s not worth selling off your “family property” if you can make just one more penny!
Reselling raw materials is just an insinuation that it is indeed impossible to make money by doing the main business in the current market. The cheap raw materials on hand seem to be the last capital of textile bosses, so they can only obtain more profits on the cost side. If the cheap raw materials run out However, we still have to buy high-priced raw materials for production. The buying principle of buying up and not down has made the recent polyester production and sales not too bad. Maybe the textile bosses also understand that the price of raw materials will only increase in a short period of time, and the phenomenon of parking for maintenance It is also very frequent, and the promotion situation is very slim. Buying a little will prevent you from losing more when the order comes.
The epidemic has not only reduced demand, but also reduced the price of fabrics. Last time, it was mentioned that chiffon beads with a current market cost of 3 yuan/meter can only be purchased for 2.8 yuan/meter, and in the inner-rolled market, the price is even lower at 2.6 yuan. / meter, if you don’t lower the price, who will buy your fabrics? Although the textile bosses have orders in hand, the extremely low profits really make them say: they can’t afford to lose!
Now that the market has entered the off-season again, there are no orders and no money has been made in the early stage. Customers cannot accept the price quoted and cannot afford to lose money. Customers only care about price reductions and pretend not to understand the raw materials when prices rise. It’s really It’s better to sell the raw materials in stock to make a profit. Anyway, the market situation is unlikely to improve in a short period of time.
However, according to the current market situation and the increase in raw material prices, there may not be promotions in the short term. However, the continued market situation is not good, and downstream manufacturers will not replenish their stocks for a long time. The more polyester stocks are accumulated, the more promotions will naturally follow. .
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