On April 2, around 16:45 in the afternoon, the production and sales of several factories in Jiangsu and Zhejiang were around 180%, 200%, 500%, and 500%. The production and sales finally exceeded 100%, which gave the dying Ju The ester market received a “blow-back shot”.
On April 3, the average production and sales of major mainstream manufacturers were 80%-120%, and the production and sales of some promotional factories could reach 200-300%. Production and sales exceeded 100 for two consecutive days! I heard that the production and sales of a polyester factory reached 1000%!
Recently, in the textile market In addition to the cancellation and suspension of foreign trade orders, the falling raw materials are also a hot topic. Many cloth owners are hesitating whether to stock up on more. Is it time to buy at the bottom? Now from the perspective of production and sales, some bosses have already taken action.
The low price makes some bosses excited
Since March, the market price of polyester filament has continued to run at a low level and has reached the lowest price in the past three years. Such low prices, as well as varying degrees of transaction discounts, make many weaving bosses excited.
“Although there were bargain hunting before It was an unpleasant experience to get halfway up the mountain, but this time we think we have almost fallen. The raw materials are also urgently needed. We don’t plan to stop the machine in the near future. We will take a holiday when we really can’t hold it anymore. We just take advantage of the low price of raw materials. , prepare more. Furthermore, I heard that many polyester manufacturers have begun to reduce their burden. Once the burden is reduced, the price may increase. If the raw materials increase later, it will save hundreds of thousands.” A family with more than 300 weaving machines Boss Bu of the machine said.
After visiting, some bosses want to take advantage of the current low prices to stock up on more raw materials. Although the market is not good, the current price of polyester yarn has reached a historical low. Furthermore, on April 2, the market suddenly reported that Russia and Saudi Arabia were expected to “shake hands and make peace” on the issue of production cuts. Affected by this news, international oil prices suddenly rose sharply during the session and continued to rise. This also led to a general rise in polyester yarn prices on April 3.
Tongxiang direction: Polyester yarn price of another large factory in Tongxiang increased by 200-300; polyester yarn price list of a mainstream large factory in Tongxiang increased by 200-300 yuan;
Jiangsu direction: Jiangsu Sheng Polyester yarn POY and FDY from major Zeyi factories rose by 200;
Many cloth bosses think: “Now it depends on who owns If you are brave enough, stock up more. Once polyester yarn continues to rise, you will not only earn money for raw materials, but if the price of gray fabrics also rises by then, you will be using low-priced raw materials to produce high-priced gray fabrics, which will be a real profit.”
I want to buy the bottom, but I have no money and no courage!
There are “radicals” and naturally there are “conservatives”. When it comes to raw material procurement, many cloth bosses are still very cautious. Cautious. “The price of raw materials is changing every day and has been falling. Today’s low price may be tomorrow’s high price.” A cloth boss with 80 looms said.
Bubo bosses also have their own plans on how to purchase raw materials. However, due to the current sluggish market, there are not many bosses who want to increase the purchase of raw materials. The main reason is lack of money!
A manufacturer mainly engaged in pongee and nylon spinning revealed: “This year’s market is definitely worse than last year. Foreign trade is basically at a standstill, and domestic sales are not much better. Go, there are so few orders. When will the epidemic be brought under control and the textile market recover? This has caused the upstream and downstream funds in the textile industry to be very tight. The account period will definitely be longer than in previous years. Customers may even go bankrupt and the payment cannot be recovered. At this time, we definitely don’t have enough funds on hand. Even if the price of raw materials is very exciting, if we don’t have the money, we don’t have the courage to stock up.”
Coincidentally, a cloth boss with 60 looms also expressed dissatisfaction. Will stock up more, “Our money is all tied up in the inventory of gray fabrics. Now the inventory is close to 2 million meters. The warehouse has been liquidated. Funds are not flowing smoothly. Workers’ wages, water and electricity, and rent have already overwhelmed us. How can there be extra money to stock up on raw materials.”
After investigation, weaving factories currently have about 10 days of raw material inventory, which has reached the point where replenishment is just needed. However, most companies said they would not stock up. The overall market orders were lacking, and it was difficult to balance production and sales. Everyone was still cautious. “It is safer to adopt a buy-and-use strategy. Now everyone can’t afford to lose,” said one person. The boss said helplessly.
Afterwords
In the past two weeks, as the overseas epidemic has continued to escalate and customers have postponed or even canceled orders, pressure has begun to be transmitted from terminal companies to upstream. Traders, dyeing factories, weaving factories, etc. have all suffered greatly. Next, textile companies are bound to face the problems of reduced orders and increasing inventories. More companies will take the opportunity to take holidays and lay off employees than in previous years. The cause of these is the black swan of “COVID-19”. We can only wait for the black swan to fly away. Only then will the market begin to improve and demand will slowly recover.
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