“It can’t be shipped, it can’t be shipped, and it can’t be shipped for the time being…”
Recently, the epidemic has struck again in an important textile area. The increasing number of confirmed cases has made textile bosses doubt their lives again. Is the market, which has just improved a bit, going to “fall” again?
“We are in the white goods business, and most of our goods are sent there. However, due to the recent epidemic there, we cannot send it out at all. We have to be quarantined when we go out and have to work 7+7 when we come back. So we have no choice but to not ship the goods. First Speak slowly,” said a textile boss.
A few days ago, the market just said that small orders had increased, and the gray fabrics at the door of the store department were piled high. Now it seems to have “returned to before liberation overnight”, which made the textile boss say: It’s difficult to do!
The epidemic is volatile and the market is difficult to stabilize
Last week, I was still rejoicing that the epidemic in Jiangsu, Zhejiang and Shanghai was finally under control, and the “Red May” had also begun to take shape. Now the important textile areas are repeating themselves again. The epidemic is now like a time bomb, erupting from time to time, and it is completely elusive. According to If this situation continues, it will be difficult for the market situation to completely improve this year.
“There are actually quite a lot of hot-selling varieties on the market now, and the sales volume of some conventional products is also okay. But we don’t know when the worms will appear, and it will be June soon. With the traditional off-season approaching, the market may suddenly change. Once we hit rock bottom, there is no way to relieve it,” said a textile boss who specializes in elastic fabrics.
The epidemic has been one of the main problems that has plagued textile people in the past few years, but the epidemic is not the main reason for the deterioration of the market. Demand has been declining recently this year. Assuming that the demand is there, the epidemic can stop everyone from buying fabrics. enthusiasm? However, the epidemic has also reduced demand, which has led to the current tepid market. Therefore, the epidemic is only a catalyst. Even if the epidemic did not exist, the market situation would not be as good as before.
However, according to some textile bosses, there are still a lot of orders in the market, and there are many textile bosses who have their looms running at full capacity and taking orders non-stop, but the money in their pockets is really less…
Costs remain high, and customers are desperately trying to lower prices!
The price of crude oil has been hovering around US$110 recently. The polyester raw material PTA has suffered a large loss, and polyester filament is also at a loss. The downward space is very limited. In order to reduce losses, polyester manufacturers will definitely continue to push up the price of polyester filament. But in this low-price textile market, if customers continue to keep prices down, I’m afraid losses will follow.
Although everyone has the habit of stocking up, cheap raw materials will run out sooner or later, and promotions do not happen every day. Customers cannot place orders and wait for raw materials to become cheaper before purchasing. They may wait until the price of raw materials finally stops. Without it, orders that could have made a small profit ended up losing money.
“To be honest, everyone is saying this year is bad, but our orders are really good, and we are basically shipping every day, but the customer prices are very low, resulting in pitiful profits. However, we also have a bottom line, and we will not lose money if we lose money.” Take it.” said the person in charge of an old textile company.
Indeed, if it is said that all textile companies have no orders this year, there must be many people who deny it. But if it is said that there is no profit or less profit, let alone 100%. More than 95% of textile people agree, as if there are orders Textile bosses can refuse loss-making orders, but do textile bosses who already have no orders to weave still have any choice? They can only think of ways to keep their factories running normally.
In general, there are epidemics and wars, and there are problems on both the terminal demand and cost sides that make it difficult for the market to improve. Moreover, it is about to enter the off-season, and it will be difficult for the market to improve in a short period of time.
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