September and October are the traditional peak seasons for textiles in the market, and they are also the hottest time for textile business every year. Domestic “Double Eleven”, “Double Twelve” and foreign Christmas orders often come in at this time. Although the market this year is more difficult than in previous years, the market has still made a different sound recently!
“This year’s autumn is extremely long!” said an old master who has been engaged in textiles for more than ten years. . This year, most of the textile people who are “depending on the weather” are looking forward to winter coming soon. After all, only when the temperature drops and the down jackets and cotton-padded clothes that have been accumulated for a year can become popular in the market, it will also drive clothing factories and brands to place orders for fabrics. But today’s market conditions are just like the current weather, tepid! Recently, the author learned from major weaving clusters in Jiangsu and Zhejiang that the entire fabric market has not improved at present, and the market is “unevenly hot and cold”!
Haining market: It’s really moving, and the opening rate has picked up significantly!
Since this year, the Haining market has not recovered from the momentum of last year’s “Great Leap Forward in Production Capacity”. Since the company over-introduced thousands of KS warp knitting machines in 2017 and 2018, the market production capacity has increased by more than 20%, thus breaking the good days of KS warp knitting for three consecutive years. Many small and medium-sized enterprises have begun to worry about increasing inventory and shrinking demand. The contradiction between market supply and demand has become prominent, which has also led to the low operating rate of the Haining market this year. I heard that many cloth bosses who were originally engaged in the fur industry and switched to the warp knitting industry have decided to quit and are preparing to leave.
But in late October, the market direction seems to have begun to change. . There were not many fabrics on the market at the end of September, and only some ammonia super specifications were sold well. However, in addition to regular ammonia super specifications, the sales situation of other fabrics such as mesh fabric, golden velvet, loop velvet, corduroy and other fabrics have been different recently. With the level of improvement, warp knitting manufacturers are more motivated to produce, and the operating rate has increased from 70% at the end of September to about 80-90%.
Liu, whose main products are mesh crystal velvet and swimwear fabric The general manager said: “Currently, the nine KS warp knitting machines in the factory are fully operational. From October to now, the orders in our factory have been good. Although the profit margin is not as high as last year, the basic profit can be guaranteed!” According to industry insiders, At present, the price of raw materials is at a low level, and the price of finished products in the market is low. This has aroused the enthusiasm of downstream tourists to purchase fabrics, and the market situation has shown a short-term “hotness”.
Changxing Market: Gray fabrics are “piling up like mountains”, and manufacturers have no choice but to reduce production!
“There is no peak season in the market this year. If customers don’t place orders, we don’t dare to go to the gray cloth factory to get more goods. What if we lose the goods?” Trader Mr. Sun said. As the third county with major textile production capacity in Zhejiang Province after Shaoxing and Xiaoshan, Changxing has a high concentration of production capacity. It is one of the main suppliers of home textile fabrics, clothing accessories, and curtain fabrics in the country. Many textile companies are engaged in the brushed fabric business. , so the degree of homogeneity is very high.
“The market is not good this year. Since September, it has been tepid. During the National Day holiday, our factory It is relatively rare to have nearly a week off. At present, we do not dare to turn on all the machines in the factory and stop some of them to relieve the pressure on inventory.” Mr. Zhang, who owns more than 100 water-jet looms, said. It is reported that the current price of Changxing water-jet looms remains at around 70%, which is a drop of 15%-20% compared with the end of September. “In the past, the cloth in stock could travel more than 100,000 meters a week. Now we have orders. It is expected that we will have an early holiday this year!” said another trader, Mr. Ye.
Oversupply has become the “big trouble” for many bosses! Since 2017, the Changxing area has also launched the clarion call for “environmental protection rectification.” As of August 2019, all retail households outside the Jiapu water-jet loom boundary have completed the phase-out and agglomeration signing, and 226 households and 3,447 pieces of equipment have completed the “two interruptions and three cleanings”. Many local bosses have doubled their production capacity and continued to produce conventional products such as brushed fabrics. Therefore, the market has an obvious overcapacity phenomenon, which has also resulted in the current embarrassing situation of “hard to prosper in the peak season” in the market.
In fact, the business operations of Haining, Changxing and other places are also It reflects the current situation of many textile companies in today’s textile market. On one side, the warp knitting market is beginning to show “warmth”, while on the other side, the water jet market is still “cold”. In addition to the seasonal demand for products, the operating rate of the warp knitting market has remained at a relatively low level in the early stage, ensuring that Inventories do not exceed the warning line, so once the market improves, the overall market mentality will be significantly boosted. And squirting�The operating rate of looms has always been at a high level of 80-90%. The market supply is large and homogeneous competition is obvious. This has also led to the difficulty in digesting excess production capacity even if demand improves, and textile enterprises have an obvious lack of confidence.
Fortunately, the price of raw materials has been declining at present. Weaving manufacturers are not expected to experience the sharp rise and fall of raw materials last year. At least the raw material link is relatively safe; in addition, Sino-US trade is also continuing to release benefits, which has a certain stimulating effect on the market. In addition, many traders said that demand in the recent e-commerce season continues to increase. It is expected that the textile market in October will still end well!
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