Recently, many friends have asked, how is the textile market now? Are many weaving companies really preparing for a holiday? Will the shutdown of production and the reduction of reopening make the market “cool for a summer”?
On July 23, a weaving factory issued a high-temperature holiday notice: from 6:00 am on July 24 to 7:30 am on August 3, workers behind the wheel should pay attention to the loom meters. Don’t count the numbers!
High temperature is coming, and it seems that some textile factories have already begun to ” “Summer vacation” rhythm, so is this an exception or is it a common phenomenon in the market?
In July, many printing and dyeing manufacturers expressed that they “don’t have enough to eat”. Many printing and dyeing factories even had the idea of taking a holiday and many of them implemented it. In early July, there were A dyeing factory issued a holiday notice:
I have heard a lot recently Peripheral loom manufacturers have also begun to reduce production. According to Mr. Wang, the head of a textile company with 600 looms in northern Jiangsu, there are currently workers in the factory asking for leave, so production has been reduced and the operating rate has been maintained at about 70%. “After the production reduction, the inventory has not increased, so the holiday has not really started yet,” he said. As early as half a month ago, faced with nearly two months of gray fabric inventory, Mr. Wang said that he would take a half-month holiday when the weather was hot. Now that the holiday has turned into production reduction, it can be regarded as another operation in the off-season.
Not only in the peripheral market, there are also many companies in Jiangsu and Zhejiang that have similar operations:
It is said that one company in Haining has 40 warp knitting machines The manufacturers of the looms are on holiday for a week, and many warp knitting factories in the area have reduced production by 30%;
A weaving factory in Wujiang area with more than 130 water-jet looms has begun to implement rotating holidays, and the operating rate is at 50%;
A manufacturer with 40 circular knitting machines in Xiaoshao area only maintains one-third of its machine production;
Changxing A local manufacturer with more than 200 water-jet looms has reduced its operating capacity to 70%;
…
In the past two weeks, the textile industry has Manufacturers have poor enthusiasm for production, and the operating rate has dropped significantly. According to the sample monitoring of China Silk City Network, the operating rate of looms in Jiangsu and Zhejiang this week dropped to over 60%, among which the operating rates of water-jet looms in Shengze and Changxing were 70-80%, and the operating rates of warp knitting machines in Changshu and Haining were 60%. -70%; the operating rate of Xiaoshao circular knitting machines is around 50%. Compared with the first half of the month, the operating rate has dropped by nearly 10%.
Why do textile bosses frequently reduce production and take holidays recently?
The raw materials are unstable and may depreciate in value after production!
The raw material market surged and plummeted in July, injuring many weaving manufacturers. Raw materials surged in the early stage, and many manufacturers took the opportunity to stock up. Raw material inventories increased from the previous 7-15 days to about 25-35 days. After that, the market for raw materials took a turn for the worse. Many textile bosses said they were losing money by using raw materials purchased at high prices to produce low-priced gray fabrics. Since then, many manufacturers have been more cautious and dare not purchase raw materials at will. Recently, there has been an “extreme market” in the PTA market. Affected by the previous Huatai OTC options incident, PTA has fallen sharply one after another, and polyester filament has continued to fall as a result.
The instability of the raw material market has made weaving manufacturers who originally had poor profits “fearful” of being devalued accidentally, which will dampen their enthusiasm for production. “The raw material inventory in the factory is still a week away. The price of raw materials is now unstable. We are ready to wait until the production of these raw materials is finished. If there are still no orders, then we will also consider taking a holiday!” said the owner of a textile enterprise in Wujiang area.
There is no order to be made, and if it is made, it will be treated as inventory!
Overcapacity is a common problem this year. In the off-season of July, the market continues to weaken. Most manufacturers, especially those producing conventional chemical fiber fabrics, are under heavy inventory pressure. According to data from sample companies monitored by China Silk City Network, most manufacturers that produce bulk goods currently have inventories of about one and a half to two months, which is under great pressure. In addition, as the off-season in July and August deepens, the destocking process is hindered. , the production enthusiasm of manufacturers has been suppressed. “You can’t sell it even if you produce it. Even if you sell it, you will easily lose money. It is better to reduce production and take holidays to reduce the pressure.” said Mr. Dai, the owner of a textile company in Changxing area.
The high temperature warning sounded, and workers’ enthusiasm for production was frustrated!
In previous summers, many textile factories suffered from power cuts or outages. High temperature�There will be corresponding holiday measures. The hot weather came late this year, but it still arrived. Starting this week, high temperatures have continued across the country, suppressing workers’ enthusiasm for production. Many workers have a strong intention to ask for a holiday due to poor production conditions. Manufacturers will also give workers holidays or rotations based on actual conditions, and production capacity will naturally decrease.
High temperature + production reduction = normal rule, high temperature + off-season + production reduction = Smart move! Last year’s off-season became the peak season, and everyone was engaged in production at full capacity. This year’s peak season has become the off-season. Textile bosses are worried about whether it is off-season or off-season. As the off-season atmosphere of the market deepens, it is estimated that many textile bosses will choose to reduce production in July and August to relieve their own pressure! Come on, textile people! After surviving the off-season, the peak season will always come!
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