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 of all, let’s look at the resumption of work. At present, 80% of weaving enterprises in Wujiang have resumed work, and only 20% of weaving enterprises are still suspended. Status, it is expected to 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 situation
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, is that workers are gradually arriving at work , on the other hand, the unit volume is also increasing, and manufacturers will increase their startup rate. 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, currently there are not many orders that manufacturers can execute on hand, 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 have raised their gray fabric prices by 0.1-0.4 yuan/meter
The market transaction atmosphere is active, and the accompanying It is because some manufacturers have raised 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.
Anotherpartofthereasonforthepriceincreaseofgrayfabricsalsodependsonthecost.Althoughthecountryhasresumedwork,theepidemicisnotoveryet.WhenworkersfromotherplacesreturntoSuzhou,companiesneedtobearthetravelexpenses,foodandaccommodationexpensesoftheiremployees,andtheyalsobearmajorresponsibilitiesforthehealthoftheiremployees,whichposesagreatrisk.Inaddition,underlowproductioncapacity,thecostofweavingenterpriseswillalsoincreasecomparedwithwhentheloomisfullyoperated.Priceincreasesinlogisticsandtransportation
Logisticshasbasicallyrecovered,butsometransportationcostshavealsoincreased.Thereasonfortheincreaseismainlyduetotheshortageofworkersandtheincreaseinwages,whichhasledtoanincreaseintheloadingandunloadingcostsofgrayfabricsandanincreaseinshort-distancetransportationcostsforgoods.”Logisticshasrecovered,andourcostofshippingtoBinhai,Shaoxinghasincreasedby0.5yuanperpieceofcloth.” Manager Xu said.
However, most manufacturers reported that logistics costs have not changed, and the price is the same as the price a year ago. Consistent. 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.”
Enterprise electricity costs are slightly discounted
Speaking of costs, the editor has also conducted a survey on whether the costs of weaving enterprises have increased or decreased recently. 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.
One personManager Weng, the owner of a weaving manufacturer specializing in pongee, said: “There is no clear cut in the electricity bill, but our factory enjoys a discount of 2 cents per kilowatt-hour. But for our manufacturer, whose monthly electricity bill is more than 300,000 yuan, The electricity bill was reduced by more than 10,000 yuan, which has almost no impact on the cost.”
The market outlook may gradually turn colder
Although The cost impact of textile companies will not be significant, but will it have an impact on orders received in the following 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!”
Being optimistic about the future market is partly due to the recent signs of the boom before the “Gold, Three, Silver and Four” in previous years. Moreover, it will take time for production capacity to recover, and the true end of the epidemic is still unknown. 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, textile companies have started operations in an orderly manner, and the market trading atmosphere is active, which has brought confidence to the entire market and also stimulated 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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