In recent times, the price of polyester filament has continued to rise. The price increase of products of various specifications is generally 1,000-1,500 yuan/ton, which brings to weaving enterprises: High cost. However, downstream buyers and traders are not very enthusiastic about purchasing, leaving weaving companies with high inventories.
High costs and high inventory have made the market sluggish and fabric orders Insufficient, mainly small batches and multiple batches. The operating rate of printing and dyeing factories in Shengze area is about 70%, while the operating rate of printing and dyeing factories in Keqiao area is only 50%. It can be seen from the number of dyed gray fabrics that the current market is weak and in the off-season stage. Therefore, the market for gray fabrics is sluggish, and weaving companies are overwhelmed by inventory.
Stop production, reduce production and destock, and do not produce blindly
As the saying goes, it is better to stop the boil than to draw the fuel from the bottom of the cauldron! High costs, high inventories, and low market prices may force weaving companies to start reducing production! Already weaving companies have realized the profound meaning of this sentence. According to the editor’s understanding, some weaving factories in Wujiang, Anhui, Haining and other places have begun to suspend production and reduce production.
Some weaving factories in Anhui, northern Jiangsu and other places are half-stopped and half-operated, and the machines that were originally used to process customers have also stopped. Some small factories have stopped production due to excessive financial pressure. It is understood that the original operating rate in Anhui and other places was 90%, but now it has dropped to 70%.
In addition, the warp knitting enterprises in Haining area are also unsatisfactory. After the surge in raw materials, the operating rate dropped from 70% to 50-60%. It can be seen that the warp knitting industry has also been overwhelmed by the high price of raw materials, and has begun to suspend production and reduce production!
The owner of a weaving company in Tanqiu has stopped production at the old factory for a holiday, while the new factory continues production. He said: “It is the off-season now, and the overall inventory in the market is so high. Why should we hold on? It is a good thing to stop some parts and reduce some inventory.”
Horizontal The owner of a weaving company in Shan family also said that he is planning to stop production for a holiday. “I plan to stop production and take a holiday starting from July 15, which will last for about 15 to 20 days. I will hold a meeting with the workers to see their opinions, but most of the workers are willing. Why not rest at home with your salary?”
A survey conducted by China Silk City Network’s Purchasing and Weaving Center showed that some weaving companies also have plans to suspend production for a period of 15-30 days About days. The owner of a weaving company in Wujiang area said: “The current suspension of production is not because our factory cannot continue to operate, but for the sake of capital turnover. It is king to hold the money in hand so that it can operate better during the peak season.”
In special times, special operations are necessary to ease the market. The current suspension of production is not because weaving companies have lost confidence in the market, but to better prepare for the “Golden Nine and Silver Ten” in the second half of the year. If the inventory is too high and blind production will only divert funds, it will cause unnecessary trouble to the operation of the enterprise.
However, most weaving companies still have their machines running at full capacity, thinking that as long as gray fabrics are woven, they are not afraid of not being able to sell them. It is just a matter of time. According to the monitoring of China Silk City Network, the current operating rate of water-jet and air-jet looms in Shengze area is still around 80-90%. The editor believes that insisting on running the machine at full capacity is suitable for weaving enterprises with small inventory of gray fabrics and sufficient liquidity.
The suspension of production and reduction of production by weaving enterprises is a strategic shift. The purpose of self-cultivation and rest is to better meet the “Golden Nine and Silver Ten”. Although the current market is weak, the cloth bosses are still full of confidence in the “Golden Nine and Silver Ten” and actively welcome the arrival of the peak season!
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