Incredible! The four-sided bomb that used to be a hot-seller suffered a serious setback!
Recently, many manufacturers are selling four-sided elastics at low prices on the market, and the price of their gray fabrics has dropped to freezing point! Take 100D four-sided 17-reed gray fabric as an example. Now it only sells for 1.75 yuan/meter, but in the first half of this year it cost at least 2.4 yuan/meter, a drop of 0.65 yuan/meter!
01Weaving manufacturers are selling goods like crazy
What is it that causes the price of four-sided stretch fabric to drop so quickly? Investigating the reason, the biggest influencing factor is naturally the lack of demand in the downstream market! As the inventory problem escalates again, the price of raw materials has accelerated, and the price of gray fabrics has also stagnated. Since the price of spandex raw materials fell, the price of four-way elastic fabric has continued to decline. In addition, due to the recent off-season, some traders took the opportunity to lower prices and stock up on goods, causing prices to fall without a bottom line.
But when it comes to sales, the sales of four-sided bombs this year are still top-notch. Even in the off-season, there is still a certain amount of shipments. Unfortunately, the inventory of four-sided bombs is too high, and production and sales are seriously uneven, causing manufacturers to still have a mountain of inventory on hand. Because of this, manufacturers are eager to sell and cash out, and traders take the opportunity to lower the price and buy it at the lowest price. As the saying goes, “One is willing to fight, and the other is willing to suffer.” It is no wonder that the price is not low!
According to the person in charge of a weaving factory that produces four-way elastic, pongee, T400, etc.: “The factory has been on holiday for more than a month. Four-way elastic is shipped every day, but the factory still has more than 1 million meters of four-way elastic in stock. I feel like I can’t sell them out no matter how much I sell them! Moreover, these stocks were produced when raw material prices were high. The cost of 100D is at least 1.95 yuan/meter. Now it only sells for 1.75 yuan/meter. It really makes my heart bleed. But still Some manufacturers sell it for a lower price than us, they are really selling like crazy regardless of the cost!”
02Eager to cash out, sell regardless of cost
In fact, four-way elastic is not the only one facing loss-making sales. Gray fabrics of other products have been sold to varying degrees. However, four-way elastic has fallen too sharply due to spandex yarn, and the price of gray fabrics has been affected the most. Affected by this, the pressure on weaving manufacturers has doubled. Since the beginning of this year, the downstream weaving market has been facing a state of “slow peak season and very weak off-season”. Whether it is oversupply caused by external production capacity shocks, or the global economic slowdown, weakening end market demand, etc., for the fabric market, the biggest impact is undoubtedly on conventional products. Sluggish market sales become the norm, and eventually face overcapacity and generally low profit margins. embarrassing situation.
This year’s textile market has a relatively large gap year-on-year. The overall order performance is mostly tepid and has not improved significantly. Most orders are dominated by “small batches and multiple batches”. The current factory operating rate is also low. In addition to order demand and production factors, the factories that keep operating are partly to retain workers and reduce cost pressures such as rent.
03The price of gray fabrics has dropped to freezing point, can you buy the bottom?
Seeing this, some people may ask if the price of gray fabric is very low. Can we buy it at the bottom? At present, the selling prices of some manufacturers are indeed very attractive, which can make fabric profits very considerable. Regardless of other considerations, the prerequisite for bargain hunting is to have enough cash on hand, because the selling price requires cash to purchase. Secondly, we must grasp the trend of raw material prices. If raw materials fall sharply, the possibility of gray fabric prices falling with it is very high. Furthermore, the storage time of spandex fabrics such as four-way stretch fabrics is not long, and there is a risk of mold when stocking them, so you need to be very careful.
However, we do not need to be overly pessimistic about the future textile market. After all, clothing is a rigid necessity and will only be delayed but not disappear. In particular, the market-made fabrics in the spot market have large quantities, various colors, and affordable prices. They have always had a very large clothing customer group. Not only textile people cannot do without this market, but also clothing companies and clothing consumers.
Especially now, orders for autumn and winter fabrics are being placed one after another, the off-season is beginning to improve, and demand for various fabrics is gradually recovering. These orders will still be placed, but the process may be very late and slow, and textile workers still need to be fully mentally prepared.
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