Recently, the editor wanted to play with my friend Xiao Wang in the sales department, but Xiao Wang said that he is not here now and went to Yiwu to collect the account. The market is not going well this year. It is almost the end of the year and there are many places to spend money. I want to get the money as soon as possible to have a good year.
Hearing this, the editor couldn’t help but sigh. With the market situation this year, everything has been advanced, even the time to collect accounts has been advanced. In fact, in addition to the time to collect accounts, many things in the textile industry will come earlier than in previous years this year.
Take the start time of construction as an example. According to China Silk Duwang data monitoring shows that starting from early November this year, the loom operating rate of weaving enterprises in Jiangsu and Zhejiang began to slowly adjust from the peak. In 2018, the adjustment time was in mid-December, while in 2019, the adjustment time was in early December. .
There has always been an 80-20 rule in the textile market, that is, The 20% of companies with better performance earn 80% of the industry’s profits, while the remaining 80% of companies can only share 20% of the profits. In the context of this year’s epidemic, demand has been greatly reduced, and some traditional “runs” have “Quantity” fabric profits have been greatly compressed, and the polarization in the market has become more obvious. The textile companies that have been hit by the epidemic belong to the majority, and this may also bring more “advance”.
Vacation in advance
Holidays and work reductions should actually be considered the same thing. When orders are not received, textile companies will inevitably enter the stage of re-accumulating inventory. When inventory accumulates to a certain level and approaches the tolerance limit of textile enterprises, early holidays will naturally occur.
In fact, early holidays are not new. This year and even last summer, some textile companies in the market suspended production and holidays due to financial pressure. At the end of last year , there has also been a situation where textile companies took holidays early due to excessive inventory.
There has been news circulating on the Internet that companies are allowed to take holidays in advance. At least judging from the market situation, for many companies, it is indeed feasible to take holidays earlier than in the past. It is a way to relieve the pressure on funds and inventory so that you can survive. Since some companies had an early holiday last year, this year the epidemic situation is obviously worse than last year, so the possibility of an early holiday is not small.
Stock up in advance
In previous years, weaving companies would stock up on raw materials before holidays because polyester prices would rise a bit at the beginning of the next year. However, the price trend of polyester yarn after the beginning of 2019 and 2020 broke this pattern. Especially in 2020, due to the impact of the epidemic, the price of polyester yarn directly “cut in half” to the lowest price in history, and textile companies that stocked up on raw materials all lost money. It costs a lot of money, and some cloth bosses choose to “buy as you go” when buying raw materials this year.
However, the editor learned during the visit that even with the “learned lessons”, many textile companies still decided to stock up on raw materials before the year. Because they believe that the current polyester price is low enough and is likely to rise in the future.
Since the holidays for textile companies may be earlier this year , the time to stock up on raw materials will naturally be advanced, and there may be a wave of polyester stocking and price increases in the market in advance.
“Ahead of schedule” may cause silk price fluctuations
As we all know, the decision to reduce production of looms in textile companies is very fast from the issuance to execution, but the response speed of the polyester device is not so fast. Once the huge device is opened, Once a chemical reaction starts, it cannot be stopped casually. Weaving companies are stocking up on holidays earlier than before, which means that the inventory of polyester factories has a longer accumulation period than usual.
highest value. What followed was that in the following months, the price of polyester yarn dropped again and again, and promotions became a norm in order to reduce inventory.
If the situation of early holiday and early stocking really occurs, polyester Inventories are likely to accumulate in large quantities again, perhaps to a lesser extent than 2At the beginning of 2020, it will indeed have a suppressive effect on the polyester price trend after the year.
For cloth bosses, as the end of the year approaches, they must be mentally prepared for this year’s year-end work in advance, and make corresponding plans to be prepared.
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