Recently, there has been a small rise in the textile market. Upstream polyester prices have increased, gray fabrics have stopped falling, and dyeing factory delivery times have been extended…
(Code Sheet for a Dyeing Factory in Shengze)
As the saying goes, if prices rise, there is hope. What is the current market situation? What’s going on?
Printing and dyeing market: Busyness is not all caused by demand
As far as dyeing factories are concerned, since the setting machine production in Shengze area is limited to 50%, the output will be lower. The price has shrunk, and it is the end of the year. Traders are rushing to make orders for next spring and summer. Therefore, dyeing factories are experiencing a rare busy period, and their voice is gradually increasing. It is understood that most printing and dyeing factories in Wujiang will have a holiday in early January and will stop collecting blanks at the end of December.
We all know that a large part of this market situation is caused by environmental protection and production restrictions. Compared with the real peak season, it is actually far behind Very far. According to reports from dyeing factory salesmen, some employees have begun to return to their hometowns. As the number of workers decreases, the dyeing progress will be delayed.
It can be seen that the current extension of delivery time of dyeing factories is not always driven by demand. And currently many traders have moved orders with tight delivery dates to areas around Shengze, such as Jiaxing, Huzhou and other places. Therefore, the editor believes that this wave of excitement will not last long.
Fabric market: The price of raw materials has increased, and the decline of gray fabrics has stopped, but the demand is not reliable, everything is in vain
The fabric market has picked up slightly recently, because last week Raw materials have increased, and the price of gray fabrics has finally stabilized. In terms of products, elastic fabrics and imitation silk series are currently selling well. A manufacturer of artificial silk said: “Our business has been good recently, and the orders have been sufficient until the beginning of next year. Now the factory only has less than one month of inventory. As for the price, the price has dropped a lot this year. Now our prices are stable.” Coincidentally, a dyeing factory will not dye the elastic fabrics starting from the 26th because the elastic fabrics have been saturated. It can be seen that the current performance of elastic fabrics on the market is also good.
But some boss Bu said: “We do imitation memory, and now we have no orders on hand, but we can’t do this. It has been a long holiday, and the products woven by the production department will be used as next year’s inventory, and the trade department will sit in the office to check on the proofing situation.”
Some people drink porridge, while others eat meat. From this point of view, only imitation silk and elastic fabrics have improved so far, while other varieties are still performing generally. The overall environment of the clothing market this year is poor, the market is sluggish, people’s consumption concepts are also changing, and the number of clothes bought is decreasing, resulting in fewer orders from brands than in previous years, large orders become small orders, and small orders become proofs , the demand is weak, and the business of the entire industrial chain has been affected to a certain extent.
At the same time, as the textile market begins to decline this year, various companies will allow customers to pay on credit to a certain extent in order to get orders, and the situation of arrears has intensified. However, if customers do not pay for a long time, textile companies will be under greater financial pressure. If the debts cannot be recovered, there will be problems with capital turnover.
Grey fabric transactions are all in arrears, but raw materials require cash payment. Furthermore, workers’ wages are also a large sum. For example, in a factory with 50 people, the average monthly salary is 6,000. That’s 300,000, but 6,000 is actually a very conservative number. Nowadays, there are many textile factories with more than 10,000 skilled workers. For the Ministry of Trade, salespeople are paid monthly, and at the end of the year they are paid according to the commission ratio. There are also rent, water, electricity, taxes, no matter how you calculate it, it is not a small sum. Once the money is not returned, the boss will either borrow money to pay it off, or he will go bankrupt or even run away.
Afterword
To sum up, the textile market itself has not picked up, but the environmental protection restrictions imposed by printing and dyeing manufacturers at the end of the year have caused the market to emerge. “busy”. Coupled with the easing of Sino-US trade relations and the benefits brought about by the stocking boom years ago, the market has been boosted. However, the editor believes that do not be fooled by the current market situation. The end demand has not improved, and the inventories of textile companies are still at a low level. At a high level, it is still unknown whether the textile market will usher in the peak season next year.
