Since February, the prices of some raw materials, led by spandex, have fallen rapidly. Among them, the price of cotton yarn has also “dropped three thousand feet.” According to industry insiders, the price of cotton yarn has dropped by nearly 5,000 yuan/ton this year, while the decline of spandex has been Let’s not talk about it. The instability on the cost side has made textile bosses fearful of production and inventory. The operation of market prices lower than cost prices has really put the entire textile market in chaos.
“Two days ago, the customer placed an order for 20,000 meters of polyester-cotton stretch satin. He didn’t dare to process the raw materials himself. In the end, he bought the materials from outside, which was 0.1 yuan/meter more expensive than producing them himself,” said the textile boss.
The polyester-cotton elastic satin mentioned by the boss above is made of cotton core-spun yarn, and this yarn is made of spandex and cotton yarn. The prices of these two raw materials are extremely unstable. However, the warp yarn must be sizing and produced. The entire production line is produced with an output of nearly 80,000 meters. In the past when the raw materials were stable, they were produced and used slowly. But now this order only requires 20,000 meters, and under the current circumstances, we simply do not dare to produce such a quantity. More stock.
They are afraid of inventory
Inventory has long been a concern, but since the epidemic, the inventory problem has been magnified several times. Whether it is gray cloth, fabric or raw material inventory, it is useless in the off-season. The pressure on the shoulders of textile bosses is reduced when orders are reduced. It suddenly became heavy.
“It was fine in the first two years, at least we could still sell. This year, the situation is particularly bad. The inventory produced is piled up all over the yard, and we can hardly put it down.” said a weaver.
The increasing inventory quantity has made textile bosses fearful of starting production. According to the inventory days of sample enterprises monitored by silkdu.com, the current inventory days in Jiangsu and Zhejiang are about 37.2 days. Looking at previous years, this number is not The highest, but this time in previous years was the time when manufacturers were preparing for the gold, nine and silver ten. Most of the inventory has already been owned. However, so far this year, there have been no orders of hundreds of thousands or even hundreds of thousands of meters. There are only sporadic orders of tens of thousands of meters. Small orders are appearing one after another in autumn and winter. The fewer days of inventory this year is also attributed to the long-term high temperature holiday and production shutdown. However, according to the actual situation, such inventory days are not optimistic.
In addition to the reduction in orders and difficulty in selling inventory this year, the profit situation is also of great concern to textile bosses.
They are eager for profit
It can be seen from the above events that the textile boss gave up profits for profits and inventory, but the weaver’s choice was correct. Assuming that buying goods from outside is only 2,000 yuan more expensive, but if the price of raw materials continues to fall in the later period and the inventory cannot be sold, the loss will be more than 2,000 yuan.
In previous years, customers lowered prices, and textile bosses were usually able to get a dime cheaper. Retaining customers is the most important thing. However, due to the long-term inventory backlog and low-price sales, the basic profit of conventional fabrics this year is 0, and some even still have Due to losses and the instability of raw material prices, some weavers do not produce their own products even if they go out to get goods.
Although they have endured low prices again and again, they are still very eager for profits. No matter how much orders are placed without profits, it is useless. If they cannot make money, it is better not to do business. There are many companies that cannot survive this year due to lack of funds. Is the epidemic the culprit? In fact, it is not the case. The textile market is severely involution and the fittest will survive. It can only be said that the epidemic has eliminated some companies.
No one would have thought that the most difficult year would not be the year when the epidemic first occurred, but 2022. The days to come may be good or bad. Everyone in the textile market is looking forward to getting out of the sea of suffering as soon as possible, but wait But the result is not as expected, but life cannot shrink because of this difficulty. Maybe tomorrow there will be an order worth millions of meters coming to you.
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