“800 looms were placed in the periphery to produce four-sided bombs. We really suffered a huge loss this year…”
Since the price of spandex dropped, four-way elastic has also fallen from the “sacred altar”. In previous years, it ranked first on the best-selling list, but this year it disappeared. In the past two years, many textile bosses saw that four-way elastic became increasingly powerful and began to concentrate on production. Similar fabrics, and even former imitation silk manufacturers have begun to transform into elastic fabric manufacturers. It can be imagined that the popularity of four-way elastic was very hot before this year, and it can be said that it can be sold all year round. This was the case in the above case. I specially went to Henan to set up looms to produce four-sided elastic. Unfortunately, when encountering the market situation this year, it “overturned”.
The cost is unstable and you will lose money if you are not careful.
Not to mention that the popularity of four-way elastic has waned this year. Even if there are orders for other fabrics, the profits are pitiful. The nylon fabric that was also a hot seller last year is sold at a price lower than the cost this year. In the low-price cholera market, weavers can hold on to the last benefits?
Obviously, in the current market situation, it is difficult for weavers to have a say in fabric prices. It is understood that the original market price of the four-sided elastic was 1.8 yuan/meter, and the price given by the customer was 1.7 yuan/meter. But the textile boss thought that he would lose money at this price and did not agree. However, due to the fall in the price of spandex, the cost has come down, and now the four-sided elastic is 1.7 yuan/meter. The market price of elastic has dropped again. The textile boss previously concentrated on producing inventory, thinking that he could make a big profit, but instead he got a lot of inventory. Now he has too much inventory and is in a hurry to ship it. The price of 1.6 yuan/meter is not even If you want someone, it can be said that you have lost both your wife and your troops.
The temporary hesitation resulted in more losses. I could have sold it. I might have lost some money, but at least the funds were recovered. Now, although the cloth is still there, I can’t sell it. The funds in hand are tight and I can only do it in a hurry. Suppose I sell it at a low price. If you go out, the loss may be even greater.
Take action when it’s time to take action and stop losses in time!
Why the market price of nylon silk fabrics this year is lower than the cost price? Isn’t it because of the tens of millions of meters of inventory gained from last year’s wave of hype? Even if the textile boss loses money, he still has to sell it at a low price in tears, otherwise he will only lose more and more. , are you still waiting for it to sell well before selling it to make a profit?
The possibility of this is very small. If one day the market really improves and nylon yarn starts to sell well, then fresh blanks will always be more popular than inventory. However, there is indeed a precedent for old inventory to be sold at regular prices, but it is almost rare. The key is these few days. The market situation is getting worse year by year. The inventory of regular products is slowly piled up in each weaving manufacturer’s warehouse. The inventory is worthless when it is not used, so sell it appropriately when you can, and don’t do it for a dime. The gross price difference left a lot of unsalable inventory.
The instability of the cost side is the main reason why the prices of fabrics and gray fabrics are difficult to rise this year. If it were not for the low profits this year, textile bosses would not complain about the bad market every day.
Now that the time has come to the end of August, the market has not shown obvious signs of improvement, and only sporadic small orders have been issued for autumn and winter. Some textile bosses said that the sampling situation is not as good as in previous years. The gold, nine and silver ten may not arrive as scheduled. Textile bosses must consider production inventory. What’s more, now that costs are unstable, producing too much inventory is a “dead end.” If the epidemic suddenly strikes again, then this year will basically be over.
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