It is well known that the current situation of textile foreign trade exports is not optimistic, but at the same time, there are also benefits in foreign trade. The foreign trade market has released positive news, and the exchange rate has exceeded 7
The exchange rate of the US dollar against the RMB has exceeded 7! According to news on March 23, the US dollar against the RMB rose 124 points, or 0.17%, to 7.1303 as of 07:05. This is a high point for a long time. The last high point was 7.1854 in September last year.
Exchange rate fluctuations are unstable, and Boss Bu’s settlement of foreign exchange also needs to be timed just like speculation. Recently, the exchange rate of the US dollar against the RMB has been rising sharply. When it approached 7, Boss Bu couldn’t bear to settle the exchange. But unexpectedly, the exchange rate broke through 7 and has risen to 7.1! It seems that the difference between 1 US dollar and RMB is only 2 cents, but when the amount of foreign exchange settlement is large, there will be a price difference of tens of thousands. The market has been bad in the past two years, profits have decreased, order quantities have decreased, and the price difference caused by the exchange rate may be the profit of a few orders. Boss Bu who has US dollars in hand recently can seize the good opportunity to settle foreign exchange and make up for the lost profits. While the volume of foreign trade orders has been reduced, prices have been severely reduced
But at the same time, foreign customers are also keeping a close eye on the exchange rate. Once it rises, they will ask suppliers to reduce prices, which has severely reduced prices. But the exchange rate has always been very unstable, and fabric prices cannot be lowered just because of short-term fluctuations. And customers often only ask for price reductions when the exchange rate is high, but never go back to the original price when the exchange rate is low. That is to say, once the price drops, it is difficult to adjust, so most cloth bosses do not lower prices easily.
Polyester prices have also fallen sharply recently, and polyester filaments have also fallen sharply. The center of gravity of product prices continues to decline. Compared with the end of February, FDY product prices fell by 1,000 yuan/ton to around 6,200 yuan/ton, POY product prices fell by 1,050 yuan/ton to around 5,600 yuan/ton, and DTY product prices fell by 850 yuan/ton. to around 7,700 yuan/ton. Clothing demanders believe that with the cost of fabric suppliers falling and the exchange rate assisting, there is room for price reduction. But in fact, Boss Bu still faces great cost pressure and the profit margin is not large.
NO.1
Enterprise 1
Youbu boss said that customers have indeed been lowering prices, especially recently The price of raw materials is low and the exchange rate is good, so we ask for a price reduction. I recently had an order for imitation memory, which I did last year. At that time, it was US$1/meter. This year, the customer has been asking for US$0.9/meter, but I didn’t agree. The fabric price is already very low, and there is no room for decline. The bottom line must be maintained.
Foreign trade is experiencing a downturn, and the pressure on gray fabric inventory has further increased
The favorable exchange rate is based on the fact that cloth bosses have orders in hand. But today’s foreign trade market is experiencing a cold spell, with orders being withdrawn and goods abandoned being common. Although Boss Bu complained about being underpriced by customers, in the current situation, it is both painful and happy. Because in the current textile foreign trade market, lowering prices is not a big problem. The bigger problem is that there are no orders to do, and there is no chance of being lowered by customers!
NO.2
Enterprise 2
A person in charge of an export enterprise that specializes in home textile fabrics said, Recently, orders have been canceled intensively and in large quantities. The gray fabrics were basically completed when they were cancelled, which has a greater impact on us and further increases the pressure on gray fabric inventory.
NO.3
Enterprise 3
The owner of another fabric export company is worried: “A year ago, The orders have basically ended. There are no orders in hand now, and customers have reported that they have no orders. Foreign trade is really difficult to do this year!”
Foreign trade orders are sluggish, and the gray fabric market has also been affected accordingly. According to the data monitoring of sample companies by China Silk City Network, the gray fabric weaving inventory in Shengze area was about 39-40 days on March 20, and it is difficult for some manufacturers to destock.
On the one hand, the reduction in the number of foreign trade orders and The reduction in unit quantity has caused the sales volume of gray fabrics to decline. With the operating rate of gray fabric manufacturers having basically recovered, there is considerable pressure on gray fabric inventory. In addition, foreign trade orders are distinguished from market orders and domestic sales orders. Most foreign trade orders are of high quality and unique varieties. Therefore, the gray fabrics of foreign trade orders that are canceled midway can only be placed in the warehouse as inventory. This also increases the inventory pressure and capital chain pressure on manufacturers. Foreign trade fabric merchants are having a hard time, please don’t lower prices just because of the exchange rate, leave them some profit margin! In this special period, cherish the orders in hand, understand each other, and create a better future together! <br
