With less than a week left, the acceptance bill will be “stopped”!
Breaking news! State Council Order! Payment must not exceed 60 days!
The Premier of the State Council signed an order of the State Council in July, promulgating the “Regulations on Guaranteeing the Payment of Small and Medium-Sized Enterprises” (hereinafter referred to as the “Regulations”), effective from September 1, 2020 Be implemented.
The regulations stipulate that payment shall not be refused or delayed on the grounds of change of person in charge, waiting for acceptance, final account audit, etc., and payment information disclosure shall be established system. The regulations also set out provisions for handling complaints about breach of contract and default, punishment for breach of trust, and punishment and accountability.
There are regulations stipulating that if agencies, institutions and large enterprises use non-cash payment methods such as commercial bills to pay small and medium-sized enterprises, they should make clear and reasonable agreements in the contract, and small and medium-sized enterprises must not be forced to accept non-cash payments such as commercial bills. Non-cash payment methods such as commercial bills shall not be used to extend the payment period in disguise.
Since the introduction of the policy in July, it has aroused heated discussions in the market. Some business owners said that acceptance is not so easy to be replaced, and some textile bosses strongly agreed. After all, in today’s world In this society, the only way to be safe is to lose money!
“The crisis of many small and medium-sized enterprises today is not actually caused by the epidemic, but by their long-term and serious payment arrears!” A textile trader said, “I have actually completed this year. The profit for the whole year of last year has been increased, but the return of payment is really slow. In the past, it was settled monthly, but now it is settled in two or three months. The pressure on capital turnover is more difficult than in previous years.”
For the textile industry this year, the bargaining power of weaving and traders has weakened significantly. On the one hand, due to domestic and foreign The economy is still greatly affected by the epidemic, and the current global economic recovery is still relatively slow. As a result, end buyers’ funds are tighter than in previous years, and the payment cycle is also lengthened. As an intermediate link in the industry, Boss Bu’s receivables are only Can helplessly grow longer.
On the other hand, there is overcapacity in the market, which has caused the company’s own inventory to be at a historically high level, exacerbating the difficulty of capital turnover. Companies are eager to receive orders, remove inventory, and settle payments. The period also became more talkative.
“Recently, I have been urging the finance department to ask for payment, but there is no way. The payment is owed outside, so we don’t have enough money to purchase goods. In this era, what matters is financial strength.” Mr. Yang, an imitation silk trader, said.
The market is polarized,
Should the textile boss stop production or persist?
Funds have become the most powerful “bullet” in the current environment.
As August enters, the market becomes increasingly polarized. Just like recently, some people said that the garment factories have started working, and the business of some factories is not bad. Others said that the factories have been working for less than a week, there is no business, and they may have to take half a month off.
The global garment industry is experiencing impact. Faced with today’s market environment, many textile companies are “gritting their teeth and getting through the difficulties.” A textile factory owner with 60 looms told Editor, if the factory stops production for one day, the net loss will be 2,000-3,000 yuan. This is a good deal, which is equivalent to losing 1 cent for every meter of gray fabric sold. So if the order now costs me 5 cents, I will take it, so it is better than discontinuing production!
Data monitored by China Silk City Network shows that the profit margin of conventional chemical fiber products on the market is extremely low. The larger the social inventory, the lower the profit margin. For example, the most conventional 190T polyester Taff is currently quoted at 0.80 yuan/meter in the market, and its profit is already on the verge of loss. With the recent rebound in raw material prices, the price of gray fabrics is still hovering at the bottom, and the profit margin has further shrunk. But even if profits are not high, many polyester taffeta manufacturers only reduce their load to stabilize production and do not take a full holiday.
In fact, most textile bosses are not particularly optimistic about the current textile market. expectations, but some people still insist on production. One of the very important factors is that the price of raw materials is at a historically low level.
“It’s really cheap to buy raw materials this year. In previous years, we had to prepare an acceptance of 300,000 yuan to buy raw materials. Now it’s almost less than 200,000 yuan, which reduces part of the production. Pressure,” said a textile factory owner.
“Now that the price of raw materials is low, it is estimated that it won’t go much lower if it falls again. So even if there are no orders, we will produce and stock up first. When the market improves next year, we will It shouldn’t be a big loss if you sell it.” Also.Said a textile factory owner with 200 looms.
On the one hand, there are certain expectations for the market outlook, and on the other hand, the cost of raw materials has been at a low level in recent years, which has also caused many textile mills to continue to “continue” in this year’s “lowest season” Stay with it”!
Average price comparison of polyester filament POY150D from 2016 to 2020 to now
Unit: Yuan/ton
Average price comparison of polyester filament FDY150D from 2016 to 2020 to the present
Unit: yuan/ton
As refining and chemical integration projects have been implemented one after another, polyester filament yarn has followed the trend of raw materials in 2019, and the price has been declining. However, in 2020, overseas public health events have superimposed the oil price “Three Kingdoms”, and polyester filament yarn has started a downward mode. At the end of the first quarter, POY150D/48F The focus of market transactions was 4,800 yuan/ton, with lower transactions at 4,500-4,600 yuan/ton, falling to historical lows.
Subsequently, polyester filament manufacturers began to launch price promotions and raise prices after destocking, but each price increase was difficult to last.
“Raw materials were at their lowest in March and April. Now they are going up and down, and the raw materials will almost fall to the previous low, so we still carry out production with orders, without Under the order production and inventory model, the factory operates about 60% of the looms.” A person in charge of a textile factory that produces polyester taffeta and pongee said, “Chemical fiber cloth is relatively easy to store, and it won’t matter if it is stored for a long time. It will break.”
Money is waiting for payment recovery, and money is also needed to insist on production and purchase of raw materials. The textile boss who has survived more than half a year is still struggling with the lukewarm market conditions. , no wonder some bosses said: This year’s market situation is all about strength and financial strength! I hope that the regulations promulgated by the State Council mentioned at the beginning can really benefit bosses and make it no longer difficult to collect arrears!
</p
