Denim enterprises are running smoothly and the domestic market is full of vitality
From April 20 to 22, 2021, the China Cotton Textile Industry Association research team went to Jun’an Town, Dayong Town, Xintang Town and Guangdong Province Kaiping City’s key denim, clothing, and washing companies visited on-site to investigate and understand the operation of the industry.
It is understood that in the past month, with the increase in cotton prices, the price of denim yarn has risen sharply. Taking 10-inch plain yarn as an example, the current sales price is around 19,500 yuan/ton. At present, the yarn shipment speed of denim yarn manufacturers has slowed down, and the inventory is about 30 days; the yarn inventory of denim companies is about 30 to 45 days. In terms of dyeing materials, as the prices of raw materials for production have increased, production costs have increased. The price of indigo dye has been adjusted twice this year, and the average ex-factory price is around 50,000 yuan per ton.
Judging from the production situation, the denim companies visited are all operating at full capacity, and the order volume is maintained at about one month; one hundred looms operating in three shifts and two shifts employ about 90 people, and the average age of the employees is over 40 years old. The salary is 5,000-7,000 yuan/month, which continues to increase compared with the previous year; the average electricity consumption for production is 0.7-0.8 yuan/kWh.
From the perspective of the export market, due to the continued intensification of the epidemic, Bangladesh is in a state of blockade, and goods shipped to the local area are stranded at the port. The repayment period of denim companies has been lengthened, and sales have been greatly affected. The epidemic in India has become more serious, and orders continue to return to the country, which has brought certain business opportunities and benefits to companies. Current orders are mainly in small batches and multiple varieties.
From the perspective of the domestic sales market, as raw material prices rise, corporate production costs rise, and fabric price quotations generally increase. It is difficult for downstream garment companies to accept price increases, and they are cautious in placing orders, and the market is weakening. Enterprises are generally optimistic about the huge domestic market potential and are planning to expand into domestic market segments.
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