At present, the number of new confirmed cases of new coronavirus pneumonia in the country continues to decline every day, and the resumption of work in the textile market has also entered the final stage. However, there are still companies in the market that have not resumed work and production capacity has not been restored in place. Industry insiders are very concerned about this situation. Below, the editor will answer these questions for you one by one.
The operating rate of weaving enterprises has increased to 50%
First, let’s look at the resumption of work situation. At present, 80% of the weaving companies in Wujiang area have resumed work, and only 20% of the weaving companies are still suspended. It is expected that they will resume work in early March. The sales departments of a small number of companies have been receiving orders and shipping goods normally, but the factories have not yet resumed production. An owner of a weaving factory that produces regular varieties such as polyester taffeta, pongee, and imitation memory said: “The sales department has shipped a lot of goods, and the fabrics and linings are very popular. The factory has not resumed production yet, so it’s time to go there.” Remove inventory and prepare to start construction in early March.”
Resumption of production of enterprises
Among the weaving companies that have resumed work, production capacity is still gradually recovering, rising from 2-30% last week to about 50%. Manager Xu, the person in charge of a company that specializes in four-sided elastic fabrics, said: “Currently, the factory in Tanqiu has resumed operations, with 140 of the 160 machines operating, less than 90%. The factory in Tongluo is expected to be open in early March.”
Weaving companies have maintained orders for only 10 days
The gradual increase in production capacity, on the one hand, Workers are arriving one after another. On the other hand, the order volume is also increasing, and manufacturers will increase their operating rates. Recently, the sales of various conventional types of gray fabrics have been considerable, but most of them are orders that were not completed before the year, and orders that traders received before the year were placed after the year. Weaving manufacturers also rely on warehouse inventory when receiving orders and delivering goods. Only gray fabrics with special specifications need to be woven now.
Therefore, there are currently not many executable orders on hand by manufacturers, and most of them can last for 10 days. However, some manufacturers have received new orders this year during the suspension of production and after resumption of work, and the quantities are also considerable. Manager Xu also told the editor that he has recently received new orders, mainly for 75D double-layer four-sided ammunition, but the quantity is not very large. The large quantities are basically orders from years ago.
Some manufacturers’ gray fabric prices have increased by 0.1-0.4 yuan/meter
Market transaction atmosphere The market is active, which is accompanied by some manufacturers raising the price of gray fabrics. According to the survey, the prices of some gray fabrics have recently increased by about 0.10-0.40 yuan/meter, and some varieties have increased even more. According to the rules of previous years, gray fabrics will experience a round of price increases after the new year, and this year is no exception. Although the price of raw materials is running at a low level, thanks to the low production capacity of the entire weaving market and the tight supply of some products, weaving bosses have taken advantage of the trend to rise. In addition, some gray fabric traders took the opportunity to stock up on goods and sell them at high prices. As a result, the price of gray fabrics in the entire market was raised.
Another part of the reason for the price increase of gray fabrics also depends on the cost. Although the country has resumed work, the epidemic is not over yet. When workers from other places return to Suzhou, companies need to bear the travel expenses, food and accommodation expenses of their employees, and they also bear major responsibilities for the health of their employees, which poses a great risk. In addition, under low production capacity, the cost of weaving enterprises will also increase compared with when the loom is fully operated.
Price increases in logistics and transportation
Logistics has basically recovered, but there are also Some transportation costs have increased. The reason for the increase is mainly due to the shortage of workers and the increase in wages, which has led to an increase in the loading and unloading costs of gray fabrics and an increase in short-distance transportation costs for goods. “Logistics has recovered, and our cost of shipping to Binhai, Shaoxing has increased by 0.5 yuan per piece of cloth.” Manager Xu said.
However, most manufacturers reported that logistics costs have not changed and are consistent with the prices a year ago. A person in charge of a company that specializes in T400 gray fabrics said: “Logistics has basically recovered. Except for areas with severe epidemics, there has been no increase in the price of diesel and gasoline during this period. Highways are free and there is only a downward trend.”
The cost of electricity for enterprises is slightly discounted
Speaking of costs, what is the cost of weaving enterprises recently? Whether it is increasing or decreasing, the editor also conducted a survey on this. During the shutdown, there were early calls for landlords to reduce rents, but not many of them were implemented in weaving factories. Then there was news of a reduction in electricity prices, but through research, it was found that there was no reduction in electricity prices, and even if there was, it was only for a small number of companies.
Manager Weng, the owner of a weaving factory specializing in pongee, said: “The electricity bill has not been clearly stated to have dropped, but our factory has enjoyed a discount of 2 cents per unit of electricity. But for For our manufacturer, which has an electricity bill of more than RMB 300,000 a month, the electricity bill has been reduced by more than RMB 10,000 a month, which has almost no impact on the cost.”
After��The market may gradually turn colder
Although the cost impact of textile companies will not be significant, will it have an impact on the orders received in the next traditional peak season? Textile people also gave different answers, each with their own opinions: good or bad. Mr. Ji, the person in charge of a printing and dyeing trade factory, analyzed: “Recently, our factory has indeed had a lot of orders, and the market is showing signs of recovery, but most of them are orders that have been backlogged a while ago. When this wave of market is over, the market in the future is expected to be weak again. It has turned cold. After all, the demand in this market is just this, and after the production capacity is restored, it will be far greater than the demand!”
Part of being optimistic about the future market is because there are indeed recent “Gold, Three, Silver and Four” events in previous years. There are signs of a boom, and it will take time for production capacity to recover, and the epidemic is still not known to be truly over. This wave of market conditions may continue in the first half of the year. Mr. Wang, the owner of a weaving factory that specializes in conventional varieties, said: “The recent market has been quite hot, but it cannot be compared with 2018, and the price is also far behind. According to the current trend, the market in the first half of the year should be okay, and the market in the next It can’t be said in half a year.”
Under the epidemic situation, textile companies have started operations in an orderly manner, and the market trading atmosphere is active, which has given the entire market It brings confidence and also drives the enthusiasm of weaving companies, so production capacity is gradually recovering. Although the direction of the market outlook is still unclear, it will have a certain boosting effect on receiving orders.
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