Spring did not wait for the prosperity of “spring”, and summer felt the bitterness of “winter”!
Recently, many textile friends have complained to the editor: Business is slow again! As the domestic epidemic situation improves and overseas countries lift their lockdown, the entire industrial chain should usher in a “resurrection”. However, this is not the case in the current market, and cruel price wars are coming!
3.20 yuan/meter: The price of gray fabric in 2018 is also the current finished product on sale What is the concept of price
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“The market prices have been too chaotic recently. At the end of 2018, the price of 300T pongee gray fabric was around 3.20 yuan/meter. At that time, people still lined up to buy goods with money, but now 3.20 Yuan/meter is the selling price of finished products,” said a textile person.
The person in charge of another textile company with machines in Hebei and Shengze also lamented: “The current market price is in chaos. We quoted 1.50 yuan/meter for 240 pongee. There are prices of 1.20 yuan/meter and 1.30 yuan/meter on the market. We simply can’t afford this price, so how can we compete with others.”
The editor did some calculations and found that the current dyeing fee of pongee is about 1 yuan/meter. In other words, in 2 years, the price of 300T pongee gray fabric is about It fell by 1 yuan/meter, but the cost of raw materials only dropped by more than 3,000 yuan/ton. It can be seen that the decline in raw materials was significantly smaller than the decline in gray fabrics. The weaving mills sacrificed their own profits in exchange for sales, and the above phenomenon occurred.
As the epidemic spreads around the world, the textile market has experienced a “wave of order cuts” and a “wave of shortage of orders”. Nowadays, many textile companies have even lowered their prices, just to be able to sell goods. Establish a foothold in the market.
Not long ago, it was reported on the market that a water spray manufacturer that originally made high-end products used Japanese Tsudakoma to produce low-end products such as polyester taffeta and pongee. The daily loss is 100 yuan per unit, but it can maintain normal operation. In fact, this phenomenon is not unprecedented in the market. In order to survive, companies have no choice but to choose “less losses.” Because of this, the transaction prices in the market are also more chaotic.
For most textile bosses, price wars are really a helpless move, just for the sake of Relieve inventory and capital pressure. “The market in May felt better for just over a week. Now the market has calmed down again, and our inventory has also increased. It’s almost two months now, so we can only sell some at a low price.” said Mr. Wang, a textile boss. .
It is true that in the case of high inventory and low demand, the gray fabrics in the warehouse have taken up a lot of funds, and labor, water, electricity, rent, etc. still need to be paid in cash. In this situation Under such circumstances, if the inventory is not liquidated, the operating pressure of the company will be amplified.
In the era of “more monks and less rice”, the upstream and downstream are jointly under pressure
The market is full of chaos, and it is very difficult to To a large extent, it is also because the rebound in demand is less than expected and the market orders are “too many”.
To break it down, it has been three months since the outbreak abroad. After going through the most difficult period of lockdown in many countries around the world, many countries have gradually “unblocked” As normal social life resumes, the number of inquiries in the foreign trade market has increased compared with the previous period, and some of the orders canceled in the previous period have also returned. However, since the market is still in a state of extreme lack of orders, any order that appears will be quickly digested by the market, which shows market competition. How intense.
Looking at the downstream market, some friends complained online: Many industries have begun to decline this year, especially the clothing industry. Take the Wuhan market as an example. Less than two months after the lockdown was lifted, business in the market is still not good. Some factories started to go on holiday less than a month after they started operating. This shows that the clothing industry is in a difficult situation.
It is not just the garment industry. It is reported that the start of the weaving market has declined again recently, and the market is on holiday. The phenomenon has also increased compared with May. “During this period, our inventory has increased again, so we have appropriately reduced our operating hours.” said Mr. Chen, the owner of a weaving factory that specializes in polyester taffeta and pongee linings.
This is not an isolated case. According to research, several textile companies that reached full production in May have recently begun to reduce their load to a greater or lesser extent. The biggest factor is still the lack of orders. . “The market is currently moving, but there are not many orders. Compared with the same period last year, there are very few orders on hand. Inquiries are being followed up one after another, but there are not many actual orders. The protective clothing fabrics that were selling well in the early stage have also entered the market. At the end, everyone is in a wait-and-see mode now,” Mr. Chen said.
From out of stock to out of order, the price war has arrived. The epidemic has disrupted the normal rhythm of the development of the entire industry, but it itself is a “black swan” that cannot be predicted and avoided. .
However, it is worth noting that as the economies of overseas countries are unblocked, inquiries and proofing in the foreign trade market have increased significantly. A cloth boss said that by the end of the monthSales can be increased by half.
It can be seen that the market is still worth looking forward to, but under the current attack of uncertain factors, we can only find our position in the industry chain and seize more opportunities!
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