This year’s textile market has made many textile workers who own factories realize for the first time that the “cash cow” in previous years has turned into a heavy burden. Throughout the first half of the year, almost all textile factories were in a state of low production capacity, high costs, and negative profits.
The global epidemic is still raging recently, the number of new confirmed cases every day is soaring, foreign trade orders are almost impossible to count on, and at the same time The mid-year textile off-season in July and August and the arrival of hot weather after the rainy season seem to rub salt into the wounds of the off-season due to the epidemic. How has the textile market performed under the successive impacts?
Weaving has surrendered, either taking a holiday or selling the factory
Among all kinds of textile factories this year, the most stubborn ones are the weaving factories. Even if there were no orders throughout the first half of the year, most weaving factories still maintained a high operating rate, or even at full capacity. However, gray fabrics cannot flow downstream due to lack of orders, and factories with strong capital chains cannot withstand such a backlog for more than half a year. The “last straw that broke the camel’s back” seems to have come, and the decline of the entire weaving market has become increasingly obvious recently!
“We only have two hundred looms, but the current inventory has exceeded 2 million meters. Although it doesn’t look like It’s a lot, but it’s already our two-month output. A while ago, we didn’t dare to stop the machines for fear that the workers would leave during the holidays. Even if there was a holiday, several surrounding manufacturers would put them together. But this month, we really can’t bear it anymore. It just so happened that the weather was getting hot, so we left it alone for a week. Judging from the situation later, it is probably going to be on and off,” said a person in charge of a weaving factory.
In fact, there are many companies in the market that choose to take holidays. In the early stage, many weaving companies had no orders. To maintain a high operating rate, we are preparing for holidays during the off-season and hot weather in July and August. Of course, not all weaving companies can withstand the ravages of the off-season and still have confidence in the market after summer.
There are already many weaving companies on the market, taking the “indicators” that seemed valuable in previous years Come out and sell. In the current severe environmental protection situation, these indicators are almost out of print. Logically speaking, they should be very popular, but in fact there are many people who are eager to sell them, but very few people take over.
In sharp contrast with weaving companies, the condition of dyeing factories in the off-season is not that bad, it can even be said that A little better.
The amount of gray fabric entering the warehouse is stable, and autumn and winter orders are being placed one after another
Although dyeing factories and weaving factories are facing the same textile market this year, their states are not consistent. The operating rate of weaving mills was almost high for most of the first half of the year, and has only dropped sharply recently; however, the operating rate of dyeing plants has continued to be stable, and has even rebounded slightly recently.
According to the person in charge of a dyeing factory, the overall status of the dyeing factory is still good recently. The daily volume of gray fabrics entering the warehouse exceeds 400,000 meters, and the production capacity is also good. can be maintained above 60%. Although compared with the daily warehousing volume of 300,000-400,000 meters in the early stage and the production capacity of more than 50%, the change is not very big. But in the off-season of July and August due to the epidemic, such performance is already very good. You must know that in the past summer off-season, the warehouse volume was 400,000-500,000 meters, and the production capacity was only 60%-70%.
So in general, the overall performance of dyeing factories in this year’s off-season is pretty good. Many dyeing factories have seen long-lost scenes of piles of cloth everywhere, and there are even queues waiting in some links. And the current products in the dyeing factory are mainly autumn and winter fabric products such as imitation memory and four-way elastic. Although there is still a little distance from the peak season of autumn and winter fabrics in September and October, many varieties have already begun to take the lead and test the market!
It is actually reasonable for such market deviations to occur between production-oriented weaving factories and processing-type dyeing factories. Weaving mills can accumulate and store the produced gray fabrics until customer orders arrive, and all weaving mills are closed for holidays without affecting fabric sales. It’s just the lack of liquidity and the uncertain time for orders to pick up that has caused many textile workers to lose confidence and have no choice but to stop their losses and leave the market in time.
The dyeing factory has an absolute advantage in terms of funds and inventory. First of all, because it is processed with supplied materials, there is no inventory backlog in the dyeing factory. Without inventory, there is no occupation of funds. In addition, although the lack of orders has caused most dyeing factories to reduce prices to attract work, the payment can be effectively guaranteed. On the premise that the capital chain is guaranteed, the dyeing factory’s survivability will naturally be much stronger. At the same time, the scarcity of dyeing factories relative to weaving factories also determines that dyeing factories have a relatively strong position in the market. </p
