Have you heard?
“It seems that orders for Arab robes have come in recently from the Middle East!”
“The sajima fabric used in Arab robes has been selling very well recently!”
The above is what the editor has been saying recently from friends in the textile circle. I heard about the Middle East some time ago Foreign trade orders began to increase gradually. Unexpectedly, this statement was not groundless!
But it seems that while it is easy to sell, it is also mixed with a little “moisture”.
It is similar to conventional fabrics such as pongee and polyester taffeta, but the price is about 3.5 yuan. This year, the price of Zuojima gray fabric is less than 2 yuan.” A textile worker who has been selling Zuojima fabrics for many years The boss said.
According to what the textile boss mentioned above, the editor is puzzled why the price suddenly became nearly half cheaper when the goods were not sold at a low price?
Understood that the reason is that the Middle East does not have very high requirements for the Sajima fabric used in Arab robes, so they turned their attention to lower quality and cheaper Class B raw materials .
Sajima is a conventional fabric with large production volume and low price. In the early stage, foreign trade was stagnant due to the impact of the epidemic. Now, although The epidemic situation in Southeast Asia has improved, but fabric prices have still not gone up. Considering that customers do not have high requirements for such fabrics, textile bosses have adopted cost reduction methods.
A textile boss in Shengze area said: “We have recently received an order of 500,000 to 600,000 meters of sawei linen, and the prices are relatively low. The demand from customers in the Middle East is still For larger companies, it is better to earn less than to earn nothing.”
Indeed, the era of selecting customers in the textile market has passed. Customers choose the manufacturer with the lowest price to do business with. Affected by the epidemic, it is already a very lucky thing to have orders. It is no longer very important to make more or less.
The market seems to be improving, but the reality is cruel!
Although the foreign trade in the Middle East has begun to improve, the domestic market is indeed becoming increasingly dull!
July is the traditional off-season. Although foreign trade has begun to loosen, this does not mean that the overall market has begun to improve. The operating rate has begun to gradually decline, and inventories have risen sharply. According to the sample company data monitored by China Silk City Network, as of July 3, the company’s inventory days soared to a high of 45 days, a record high in three years. Based on the current high inventory situation, it can be seen that there are very few market orders and the market conditions are still very unsatisfactory.
“We have very few orders recently and are considering reducing the start of construction. Now there are more and more stocks. We sold them at low prices before. We dropped a batch of goods, and now it seems that we can’t even sell them at low prices, and they may not be able to hold on if they continue to operate, and the operating rate this year has never exceeded 80%.” A textile boss said helplessly.
Since the resumption of work, the operating rate has been low. According to data monitoring from China Silk City Network, since March, the operating rate of enterprise looms has never exceeded 80%. Although the recent operating rate It has picked up compared to the Dragon Boat Festival holiday, but compared with last year’s 85% operating rate, it is still far behind. There is no order and high inventory, so lowering the operating rate is a helpless move!
Generally speaking, the off-season in July this year seems to be lighter than the off-season in previous years. Even companies with orders may not be able to make money and can only support workers. The biggest problem now may not be whether there are orders, but How to handle inventory? Some fabrics are not like conventional fabrics such as pongee and polyester taffeta. It doesn’t matter if they are stored for decades. For example, some fabrics containing spandex can only be stored for two years at most, otherwise the spandex will break and be scrapped. It’s worthless!
Editor’s note
Many textile bosses have said that the market may be difficult to improve this year, although orders in the Middle East have picked up this time. The duration is still relatively long, but just looking at the order volume in this region does not mean that the textile market situation has improved. So, textile bosses, what do you think of the next situation?
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