“This raw material factory purchases in batches, and the price can be negotiated, but the large capital investment is relatively risky.”
“The price of this raw material factory is basically stable, and the negotiation intensity is small. It is suitable for buying as you go. Use it to reduce financial pressure.”…
When the author visited the market, I heard weaving bosses talking about the procurement of raw materials, and they were more cautious about bulk purchases.
Especially in this year’s tepid market, weaving factory operators are more cautious about various factors and need to The scope of consideration is relatively large. Although it’s not like “one wrong step and you lose everything”, every link is closely linked. If there is a gap in one aspect, it is like a scattered chain that is easily broken!
The fluctuations in raw material prices are bound to affect the hearts of thousands of textile people!
For example, when the price of raw materials increases by 1,000 yuan/ton, the price of gray fabric will increase by 0.1 yuan/meter; of course, if the price of raw materials is reduced by 1,000 yuan/ton Yuan/ton, the price of gray cloth will also see a corresponding cost decrease of about 0.1 Yuan/meter. Therefore, the impact of raw material cost factors on whether and how much a weaving manufacturer can make a profit cannot be underestimated! (This is just an example based on the conventional chemical fiber products in the market. The raw material cost and price of specific products vary according to the actual situation)
Since the beginning of this year, the overall performance of the weaving market has been average. Last year’s queues for goods and cash purchases are gone forever. In order to alleviate inventory pressure, gray fabric weaving manufacturers mostly focus on shipping goods as soon as possible to withdraw funds. They lack bargaining power and buyers have a strong willingness to bargain. Therefore, gray fabric prices have been adjusted accordingly, and profit margins can only remain low, and some are even operating at breakeven. This has led to the ups and downs of raw material prices, which has a critical impact on weaving manufacturers.
1. Stock up on raw materials at low prices. Maybe you can make money by buying them?
Although the raw materials are not speculative products such as stocks and futures, but are actual raw materials needed by factories, the fluctuations in polyester filament prices do indeed affect the profits of manufacturers. situation. When purchasing raw materials, you need to always pay attention to the “trouble” of all parties, and take action when it is time to take action; it is still relatively common to stock up on bargain hunting, but whether the bargain hunting is successful depends entirely on the experience, judgment and experience of the textile bosses. luck.
In the “hot” state of the textile market in 2017 and 2018, the prices of raw material manufacturers fluctuated frequently; this type of low-level stocking It is more common to make money or buy bargains halfway up the mountain. As the example given in the author’s previous article, if you are a downstream weaving manufacturer, you purchased 500 tons of FDY 150D raw materials before the price of raw materials increased. According to the price, if the price of FDY 150D was around 9,000 yuan/ton before the price increase, the price will rise to about 9,300 yuan/ton after the price increase; although it seems that the increase is only 300 yuan/ton, but based on 500 tons If calculated, it is equivalent to earning 150,000 yuan.
If the stocking volume is larger, the money saved will be very considerable. Of course, the opposite is also true. If the bargain hunt is halfway up the mountain, the amount of loss will also be quite hurtful.
However, this situation has obviously changed this year, especially in recent months, downstream weaving manufacturers have been subject to market constraints , is quite cautious about purchasing raw materials and dare not take action easily. Judging from the price of polyester filament this year, the average price of each product is currently at a low level during the year; judging from the price data trend in the past five years, although the price is slightly higher than that in 2015-2016, it is still lower than that in 2017. -In terms of prices in 2018, they are really at the bottom. Coupled with the arrival of the traditional textile peak season of Golden Nine and Silver Ten, some weaving manufacturers, texturing manufacturers or traders are thinking of stocking up in bulk.
If you boldly buy hundreds of tons of raw materials now, if the price of raw materials increases in the future, you will not only make money on raw materials ; used for the production of orders after the price increase, and also earned money for the production of gray cloth, which is a real profit. However, benefits and risks co-exist. If the price of raw materials drops in the future, it will be a bargain hunt halfway up the mountain, and you can only cry silently.
2. Is the financial pressure too great, or is it reliable to buy and use at any time?
In the past two years, as long as the market situation�At the slightest sign of trouble, textile people’s WeChat Moments, various textile WeChat groups, and QQ communication groups are full of information about price increases and good market prospects. Chemical fiber salesmen have also exposed the price increase of polyester raw materials, and from time to time broadcast the shipment situation and the intention to close the market; encouraging and stimulating downstream weaving manufacturers or traders to “stock up and increase prices.”
But since this year, both chemical fiber traders and downstream weaving manufacturers have , seems to have seen through the “routine” of raw material manufacturers. The short-term positive stimulus only has one or two trading days of hot sales, and it is difficult to have the enthusiasm to buy and buy in the early stage. The reason is that on the one hand, the large-scale production of peripheral looms this year has led to overcapacity in the textile market, especially the inventory pressure of conventional products has increased significantly, and at the same time, manufacturers’ funds have been accumulated; in addition, the volatility of Sino-US trade has been stimulating the textile industry. In the market, the trade friction between China and the United States has recently escalated again, and market confidence has been suppressed.
Although at present, everyone still has expectations for the peak season, there are doubts about the intensity and sustainability of this year’s “Golden Nine and Silver Ten” There are still quite a few. Some weaving companies and texturing manufacturers still adopt the measure of buying and using raw materials, both for risk avoidance and for financial considerations.
Should you stock up? How much to stock up on? All become problems!
Now the raw material market is in a relatively stable state. Even if the Golden Nine and Silver Ten years fail to be as hot as the previous two years, for downstream weaving manufacturers Or for texturing manufacturers, it won’t cause too much pressure.
Similarly, with the rebound of downstream startups, etc., the supply and demand of polyester end has improved, coupled with the downward trend of PTA prices since the end of July, the profits of the industrial chain have been transferred to polyester manufacturers, and the polyester market has The industry profits of related products are relatively ideal.
In any case, since the Golden Nine and Silver Ten have not yet arrived as promised, we hope that both weaving manufacturers and polyester manufacturers can balance the current market conditions. Ups and downs will inevitably cause harm to one party.
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