September is already halfway through, and for current textile companies, orders are definitely the primary concern. In the season commonly known as the “Golden Nine”, the market conditions should have been very hot, but the fact is that… the legendary days of the Golden Nine and Silver Ten have arrived, and the textile market seems to have reached a watershed again.
The situation of weaving enterprises receiving orders is inconsistent
Companies have had differences in receiving orders. Some companies said that orders are being placed one after another, and the situation of receiving orders has improved. is improving, while some companies say orders are getting fewer and fewer.
Mr.Zhou,aweavingcompanythatmainlyproducesSPH,said:”Currently,thefactory’soperatingrateis100%,mainlydoingdomestictrade.TheorderperformanceinSeptemberismuchworsethanthatinlateAugust.NoWhatkindofordersarethere?Wemainlymakemarketgoods.”
Aweavingcompanythatproducescottoninterweave,polyester,nylonandothergrayfabricscurrentlyhasonly70%operatingrateofitslooms.ItwasoriginallyfullyoperationalinAugust.InSeptember,duetothedecreaseinorders,itwasdroppedto70%.OverallsalesinSeptemberwereworsethaninAugust.Atpresent,mostordersareforcottoninterwovenproducts,whichcanonlybemaintaineduntiltheendofSeptember.
Buteveniftheyproducehot-sellingstretchfabrics,somefactoriesarenotperformingwell,andthepopularityofstretchfabricshasalsodroppedcomparedwithAugust.”Currently,thefactoryhasa70%operatingrateandissoldtoallpartsofthecountry.However,theoverallsalesareworsethaninAugust.Elasticfabricsarenoteasytosell,andtherearecurrentlynoordersonhand.” Manager Zhou of the elastic fabric company revealed.
The current gray fabric market is mainly selling some conventional autumn and winter fabrics, and other varieties are very average. Therefore, T400 Poka and other gray fabric manufacturers performed better. Mr. Liu, who produces broken cards, said: “The factory’s current operating rate is 100%, mainly for domestic trade. The current orders can be executed until October and November, and the orders are mainly broken cards.”
Inventories remain high and destocking is difficult
Judging from the situation of companies receiving orders, the current market does show a lack of orders. However, the inventory of weaving enterprises has remained high. Even if the market is loosening and some enterprises have reduced production, the inventory has not been effectively reduced.
Manager Zhou of the elastic fabric company said: “Currently, the factory has 20-30 days of inventory, and the products are mainly polyester elastic fabrics. Compared with the previous period, the inventory has a tendency to increase further. If it rises again in the future, we will consider reducing production. .”
Manager Hong also said that there is currently a large inventory of gray fabrics, so production has been reduced. If it does not improve later, we can only maintain the current operating rate and then make some inventory. The operating rate cannot be lowered too low, and workers’ wages must also be guaranteed.
Mr. Liu, who produces broken cards, is also helpless. He said that there was almost no inventory of gray fabrics before, but after the number of shipments dropped in September, inventory accumulated, although it is currently only tens of thousands of meters. The subsequent production status is mainly based on order receipt and inventory, depending on the situation.
Market orders have been launched, but the varieties are mixed and the orders are small
Although many companies said The current market situation is not good, but the market orders are indeed moving, so let’s take a look at which specifications of gray fabrics are hot-selling. Needless to say, nylon woven fabric has become the hottest fabric nowadays, and no one knows how popular it is. However, in addition to this, low-end conventional products such as T400, Poka, Dole cotton, brocade polyester and crepe are slightly outstanding. These types of products are not as popular as expected, but compared to other varieties, the sales volume is worth mentioning. In the words of Boss Bu, it is a dynamic product.
Mr. Zhou, who produces SPH, told the editor: “Recently, the better-selling varieties include T400 card-breaking, high-elastic and other low-end products. The overall unit volume accounts for 20%-30% of the market, and there are not many.”
Manager Hong revealed that Dole cotton and broken cards are currently prominent in the market, with single quantities ranging from thousands, tens of thousands, or hundreds of thousands of meters. The market orders are also slowly moving, but the quantity is average, and all products are available, which is relatively mixed. Except for nylon spinning, there is a lack of highlight products.
Manufacturers are highly motivated and stick to their posts during the Mid-Autumn Festival
As early as early September, as the market was still in the off-season, many companies expressed their anticipation for the Mid-Autumn Festival. Come early and you can stop production and take a vacation. Now that the Mid-Autumn Festival holiday is here, how many companies have actually stopped production during the holiday? Through research, we found that not many companies actually have holidays, and even if they do, the holidays are not long.
Mr. Zhou’s SPH factory does not have a holiday during the Mid-Autumn Festival. He said that in addition to the Spring Festival, the factory There will be no holidays on other holidays. Not only will workers’ wages not be guaranteed, but other expenses will still be incurred, so there will be no holidays all year round.
Manager Zhou of the elastic fabric company also said that there will be no holiday during the Mid-Autumn Festival. Even if there are no orders on hand, the company will mainly make inventory. Weaving factories will not take holidays easily. Unless the situation has not improved by the end of September, then consider taking a 7-day holiday during the National Day to allow inventory to slow down.
Manager Hong said that there was a three-day holiday during the Mid-Autumn Festival, and there was a lot of inventory. In addition, the orders on hand had enough time for production, so he chose to have a three-day holiday to adjust the inventory quantity. Manager Hong revealed that the holiday mainly depends on the delivery time of the order, market conditions, gray fabric inventory, etc. Therefore, it is currently planned to have 2-3 days off during the National Day.
It can be seen from this, although many companies are “crying for poverty” and “crying for no orders” and looking forward to a holiday, in fact they will not take a holiday easily and still keep the machines running normally. In fact, this also shows that the cloth bosses have not completely lost confidence in the “Golden Nine and Silver Ten”. They still believe that the peak season is slowly coming.
Although the market outlook is really unclear and whether the peak season will flourish is still unknown, manufacturers are very motivated to produce, which boosts the market. In addition, the orders received by some companies are improving, and the market confidence is good. I believe the market will get better and better.
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