Not long ago, this public account published an article about the sale of fine silk spinning, which caused a sensation in the textile circle at that time. Therefore, the editor hereby conducted market research to gain an in-depth understanding of the situation of companies selling goods.
First, let’s take a look at the current market situation and analyze it from several aspects such as the order-taking situation of weaving companies, the delivery speed of gray fabrics, the operating rate of weaving factories, and the inventory of gray fabrics.
Weaving factories are speeding up shipments, and production and sales are flat
At present, the market situation has improved significantly compared with April, and some fabric products have begun to sell well, such as T400, four-way stretch, SPH, pongee, nylon, imitation silk, etc.
Mr. Shen, the owner of a weaving company that specializes in satin and elastic fabrics, revealed: “The overall market situation in May was pretty good, mainly due to the maintenance of old customers, so there are always orders and there is not much inventory.”
“The quantity of gray fabric shipped in May is good, 70%-80% higher than in April, and the machines in the factory are now fully operational.” said Mr. Weng, a weaving boss who mainly produces pongee.
However, Manager Shen, the person in charge of a manufacturer that mainly deals in imitation silk and elastic fabrics, said that there was not much change in May compared with April, with only a slight increase in orders. Therefore, the inventory of gray fabrics also increased by 10% compared with April.
The market began to weaken in late May, and the factory has plans to reduce its load
Judging from the feedback from cloth bosses, the market has indeed improved, but only for some products and some companies. Naturally, there are also companies whose order-taking situation has not changed much. It is already the end of May, but the market is also showing signs of weakening, and the number of shipments from manufacturers and weaving companies is slowly decreasing.
Mr. Weng revealed that in mid-May, many specifications of pongee were sold as soon as the machines were put on, and production and sales were just about even. Now there is no need to wait for machines, tens of thousands of meters are still available in stock, and production and sales have begun to become uneven again. But the overall market situation is still good, and shipments are continuing.
Due to the weakening of the market and the approaching of the traditional off-season, the loom operation rate of manufacturers, which has finally risen, will decrease again. Especially with the Dragon Boat Festival coming soon, manufacturers have plans to reduce their load before and after the holiday.
Mr. Li said that the current operating rate of the factory is around 75%. If the inventory increases in the future, the operating rate will definitely be reduced.
Mr. Weng also said that currently the machines are fully operational, but in the off-season, if the inventory is really high, some machines will be reduced.
“Our machines all follow the order quantity. There are currently a lot of orders and we are working at full capacity. If there are fewer orders in the future, we will reduce the load while making an appropriate amount of inventory.” Mr. Shen said.
It can be seen that under the influence of the off-season, it is certain that the machine load will decrease, but how much it will decrease depends on the overall market inventory and demand. Currently, according to data from Silkdu.com, the operating rate of weaving enterprises in Shengze is around 68%, down 2% from last week. According to survey feedback, there is a possibility of continued decline in the future.
Manufacturers continue to offer profits just to clear inventory
According to Boss Bu, the sales volume of autumn and winter fabrics has indeed been quite large recently, but a large part of it is for stocking and is not used for substantive order production. Moreover, economic recovery requires a process, and it will take time for the real market to improve. In other words, the supply and demand relationship in the market has not changed. In such an environment, life for weaving companies is very difficult, especially in the face of fierce price competition. Profits are constantly giving way, or even losing money. This is why the previous few Tennis spinning incident.
According to research, there are many similar incidents in the market, and they are also the current norm. Recently, driven by international crude oil, chemical fiber raw materials have shown a continuous upward trend and have returned to a high level. The price of gray fabrics has not followed the rise at present, and has even declined due to the sluggish market in April. In addition, the market has improved slightly recently. Manufacturers with high inventories are eager to ship goods. The price of gray fabrics has become more loose, and large quantities can be negotiated.
Mr. Weng said this: “Our pongee is of high quality and the price is more favorable. Customers are willing to buy our gray fabrics. So basically there is a discount of 0.01-0.02 yuan/meter. The current market can only be based on volume to ensure that The factory can run.”
Mr. Shen also said: “The price of raw materials has been increasing recently, but our gray fabrics have not increased, and customers have to keep prices down. It is not easy to do business these days, and the prices for large orders are even more severe, and there is no profit at all. If once three For four million meters, there will be a discount of at least 0.1-0.2 yuan/meter. If you pay in cash, there will be a discount of 0.01-0.02 yuan/meter.”
Perhaps for textile workers, appropriate price reductions and profit concessions do not count as selling goods. Large quantity discounts and cash discounts are the norm. Of course, for some currently hot-selling gray fabrics, manufacturers will not give amazing selling prices. After all, there is some confidence in the quantity. However, gray fabrics such as nylon fabrics, which are currently not popular, have high inventories. It is understandable that manufacturers sell goods at a loss in order to withdraw funds.
Clothing demand in the future market is still subject to many constraints
May ���The improvement of the epidemic situation is mainly due to the substantial improvement of the domestic epidemic situation, the return of logistics to normal, and the improvement of consumption capacity after market circulation is smooth. As a result, there was a wave of concentrated consumption, but it was still constrained and recovery was limited. After all, the domestic epidemic situation has not been completely cleared, and domestic demand is still limited. The export market is also unlikely to improve significantly under the influence of geopolitics and the epidemic.
Therefore, textile people dare to have high hopes for the market outlook. What they will face next is the traditional off-season, and the market will not change much.
Mr. Shen said: “As long as it can be maintained during the traditional off-season, the subsequent market situation will mainly depend on whether raw material prices can drop, whether the epidemic situation can improve in the second half of the year, and production restrictions. If factories are not affected, demand will slowly increase. ”
Mr. Li also said: “The traditional off-season is here, and the market will only become weaker and weaker. Foreign turmoil and the global epidemic will restrict the demand for clothing.”
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