In the recent period, PTA has fallen to the limit, fallen, risen and fallen again… Wave after wave of operations have made the already unsatisfactory The textile market has little chance to breathe.
At the end of last month, after being dormant for more than half a month, polyester filament production and sales were boosted by the increase in PTA and the end-of-month replenishment of weaving manufacturers. The production and sales of polyester filament exceeded the level for 2 consecutive trading days. Hundred!
At the beginning of the month, many polyester factories had PTA equipment maintenance plans, which suppressed the downward trend of PTA to a certain extent. PTA’s decline has stabilized, and with the addition of regular replenishment operations, weaving manufacturers have begun to purchase raw materials. The production and sales of polyester filament of some manufacturers once soared to 400% and 800%!
Is there any manufacturer stocking in between? If manufacturers stock up, does it mean that the market has picked up in the off-season?
The answer is: NO!
1. Gray fabrics are out of stock! Nearly 10 million meters of inventory have nowhere to put it!
Recently, during the visit, some weaving manufacturers said: We are out of stock! Nearly 10 million meters of inventory have nowhere to put it!
This year’s market conditions, everyone It is obvious to all that the peak season is not busy, and the off-season is even weaker. The global economic downturn has dealt a heavy blow to the textile market, but the most important thing is due to the rapid expansion of peripheral production capacity! Since last year, many textile companies have been competing to expand their territory in Anhui, northern Jiangsu and other regions. This year, these new machines have begun to release production capacity intensively, erupting like a volcano.
Conventional products are everywhere on the market, and there is only one cake. The more people eat, the less the share they get, and some even cannot be eaten at all, not even the dregs are left. The textile company said: “This year’s market is really bad. Last year’s sales were 100%. But this year, although there are orders one after another, it seems that the orders will be maintained until September. However, our volume is very large. There are nearly 1,000 large, air-jet and water-jet looms, and the current inventory has reached eight to nine million meters! We dare not reduce the start-up at will. Once the start-up is reduced, we will face too many troubles.”
2. Intermediary traders closed In the water spray department, clothing brands place fewer orders, and weaving companies are under great pressure!
Between weaving manufacturers and clothing brands, there is often a link between fabric traders. During the interview, the company said: “In the past, 70% of our water-sprayed products were supplied to clothing brands through fabric traders, but this year the market was not good, and the cooperative traders directly laid off the water-sprayed department, resulting in Many of our products were backlogged at once.”
It is understood that the company has been supplying fast fashion brands HM, ZARA, UNIQLO, etc. through traders, and its annual sales of supplies to UNIQLO are The amount must reach several hundred million. But starting this year, the overall market situation is “fresh and dull”, and the rise and fall of the terminal clothing market is the most important factor that determines the quality of the upstream textile market.
In the clothing market, affected by changes in consumer demand, they dare not increase production and are very cautious about placing orders for fabrics. Some people say that you can tell whether a clothing company is doing well by looking at their inventory. Once clothing companies face a major reshuffle, the most direct feedback will be to weaving.
3. The price war is fierce. The profit of 1 cent last year will be 7 cents this year! When the market was good last year, buyers had to bring cash to pick up the goods. If you come to pick up the goods, I may not be able to arrange it for you right away. You have to queue up!
But this year, a fierce price war began in the market. If a piece of cloth is given to different manufacturers, there will be different quotations. The buyer will naturally choose the one with the lowest price. In the face of price, human relationships and friendship may become unimportant. A boss said that the profit of this piece of cloth was 1 cent last year, but if you give me 7 cents this year, I will make it too! The most important thing is to get the order. As long as we can maintain capital and cover the daily expenses of the factory, we will still do it even if we don’t make any money!
Overcapacity cannot be solved at once. Even though there were a lot of news about production suspensions, production cuts, and holidays last month, for the entire market, these are only a handful of cases. Production capacity may not change much. According to the monitoring sample companies of China Silk City Network, the current inventory of gray fabrics in Shengze is still hovering around 42 days. If the market continues to be so tepid, the price war may last for a long time.
Can “Golden Nine and Silver Ten” be achieved?The arrival of the date is an unknown number. Overcapacity, inventory backlog, shrinking profits, pessimistic foreign trade conditions, and reduced orders from end-use clothing brands. When will the five mountains that are weighing on textile companies be “removed”?
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