Last week, Typhoon “Fireworks” struck. Fortunately, it was not very harmful and did not have a major impact on the textile industry. The textile market is still operating smoothly. Only some manufacturers have stopped production to cope with emergencies, and they have encountered problems with cargo transportation being suspended in terms of shipments. However, the overall impact on companies receiving orders has not been great.
The operating rate of weaving enterprises has rebounded
The market is still in the off-season, and it is normal for the market to be stable. However, there have been some changes in the operating rate in the Shengze area recently, and it has begun to rebound slightly. According to the monitoring of sample data from Silkdu.com, the current operating rate of water-jet and air-jet looms in Shengze has rebounded to around 75%, an increase of 7% from the previous period.
Mr. Wang, who specializes in corduroy and yarn-dyed fabric products, said: “The current operating rate in the factory is 100%, and the previous production limit was 70%. Now The production limit is over and the machines are running at full capacity. We will not stop throughout the year unless there are special circumstances.”
Mr. Zhang, the head of another manufacturer that mainly produces imitation memory, also said that the production limit will be 30% in the early stage, and will be limited after no restrictions. , the machine is running, and it is currently 100% powered on. Some areas that had originally restricted production have ended production restrictions, and most manufacturers have increased their operating rates and have all their machines running at full capacity. There is another reason for the increase in the loom operating rate, which is that some orders for autumn and winter fabrics have been placed. Especially in the Xiaoshao area, due to the influence of spandex gray fabrics, the start-up rate of some weaving has reached about 90%. Therefore, the current operating rate of looms in the overall Jiangsu and Zhejiang markets is slightly high.
The sales of gray fabrics are average, and manufacturers’ inventories are rising
However, the overall sales of gray fabrics are average, and the number of shipments has doubled and dropped. Many weaving companies have reported that July is the slowest month, and inventories are gradually rising. According to the sample data monitoring of Silkdu.com, the current inventory of gray fabrics in weaving companies is about 39 days, and is gradually recovering.
Mr. Wang, who produces corduroy, revealed: “Currently there are not many orders on hand, fewer than last year. At this time last year, we had already received There are a lot of orders, but there has been no improvement this year. There is currently a lot of inventory in the factory, with half a year’s supply, which has increased compared with the previous period.”
“The orders on hand now are much better than last year. There were basically no orders last year, but there is an increase this year. Orders are mainly for T400. However, downstream weaving mills generally have average business, and the inventory of gray fabrics is definitely growing. Manufacturers have reported that there is a lot of inventory.” said Mr. Hu, a trading company specializing in elastic fabrics.
Manufacturers insist on not reducing production to welcome the peak season
The sales of gray fabrics are not ideal, and the inventories of weaving companies are rising, but manufacturers However, they all agree that they have basically no plans to reduce production. On the one hand, it is because July, the weakest month of the market, is about to pass, and August is bound to see a rebound. In addition, effective orders for domestic sales have been initially placed. Under optimistic expectations in the later period, the production reduction requirements have not been met. On the other hand, when shipments are not ideal, the losses caused by production cuts are often greater. The machine has stopped, workers still need to be paid, rent has to be paid, and the related expenses are still quite high, so it is better to continue production. Even if you keep inventory and sell at a loss in the future, it is better than losing the cost in vain.
Dan, a jet manufacturer that specializes in jacquard fabrics, said that even if there are not many orders, we will not reduce production. In particular, jet and water jet are different. The cost of air compressor is very high. As long as the machine is only turned on half of the jet, the loss will be very large, so we will not reduce production no matter what!
Mr. Wang, who produces corduroy, also said: “Although our factory has no orders this month and has half a year’s worth of inventory, we will definitely not cut production. After the production limit is over, we will open up everything. If we don’t open up, we will suffer even greater losses. , and it will definitely get better in August, let alone stop.”
Looking back on previous years, many weaving companies have jointly announced reductions in production during the off-season when the temperature is high, but this year almost no such situation has occurred. The main reason is that some areas were forced to limit production for as long as two months, and it has just ended. The overall operating rate in the early stage is not high, which means that production has been reduced for a period of time, so manufacturers are not willing to reduce production on their own.
The price of raw materials is rising, and the profits of manufacturers are decreasing
The price of spandex is still rising recently, and polyester filament is also on the rise, so it is not Few manufacturers are worried that the price of raw materials will be higher during the peak season, which is one of the reasons why manufacturers are currently willing to keep inventory. But currently, for manufacturers, the price of raw materials is indeed a flaw, which has a great impact on profits.
Mr. Hu from a trading company felt deeply: “The recent sharp increase in raw materials has had a great impact on me. Gray fabrics have increased a lot, but the price of fabrics cannot rise at all, and customers cannot accept it. “
The general manager of the jet manufacturer said: “Our factory mainly receives customized weaving orders, so the raw materials are purchased according to the order requirements. Customer quotations are based on the raw material prices of the day, and the quotations are valid for one week. However, spandex has risen too fast. The price to customers is only slightly higherA little bit, but overall it still has an impact. ”
The price of gray fabrics is difficult to rise. The reason is the lack of orders. The peak season is coming. I don’t say how strong the market will be, but it will definitely be better than now. At that time, the price of raw materials rose too fast. The growth rate of gray fabrics will also increase. The same goes for profits, which will also improve with the increase in orders.
The current overall environment is not very optimistic, and the expectations of many textile people have also changed subtly. But No one can accurately predict what the future will be like, and manufacturers are also quite cautious and will remain unchanged in response to changes.
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