“Recently, T400 raw materials are in very short supply. Many wide machine manufacturers are stocking T400 series gray fabrics such as pearl dots, broken cards, and skew.” A salesman from a raw material factory said.
It is understood that the price of T400 raw materials was about 13 yuan a year ago, and the current price is 9.5 yuan. The lowest price after the year is about 8.5 yuan. Many manufacturers are selling at low prices, mainly There are three reasons:
First, cost reduction (crude oil and slice prices have been reduced)
Second, due to the epidemic, downstream demand has declined
Third, the profit margin of T400 raw materials was larger last year, resulting in more new projects and new companies continuing to offer low prices Competition has caused raw material prices to continue to fall.
Currently, the order volume in the market is gradually declining with the advent of the off-season, but there are still many companies with an operating rate of over 90%. According to data monitoring from China Silk City Network, since the beginning of May, the operating rate of looms in Shengze has shown a significant upward trend, rising from 65% to 75% now. The increase in operating rate shows that the order volume is indeed improving.
But according to the company’s inventory days, as of 6 On March 1, the inventory days of enterprises in Shengze area remained at about 41-42 days, which was higher than the previous period. Starting from mid-to-late May, with the obvious increase in the operating rate, the inventory days also began to slowly rise.
The editor has mentioned high-end looms before Weaving low-end gray fabrics are hoarding inventory, and now there are wide machine manufacturers hoarding T400 series gray fabrics, which shows that the weaving inventory situation still exists!
In the past, no one cares about the Internet celebrities: they can only rely on weaving stocks to find a sense of presence
The market situation in 2019 is bleak for all textile bosses, but the T400 series has brought surprises to people. Various orders worth millions of meters and dyeing factory explosions have made 2019 a bleak year. Overall, the market situation for the year looks okay.
It is understood that many wide machine manufacturers in Shengze area are weaving T400 series gray fabrics as inventory. Compared with the previous manufacturers who stocked pongee and polyester taffeta For this type of conventional products, the T400 series will be more high-end, and judging from the situation in 2019, it will be easier to sell as an Internet celebrity product.
“If the four-sided elastic with spandex yarn is left open for a long time, the spandex yarn will break and turn yellow. This will not work if it is dyed in light colors. T400 can avoid these problem, so we are now weaving T400 series gray fabrics, and T400 has been relatively popular before, so it will not be difficult to sell even if we have some inventory.” said a textile boss in Shengze area.
Can T400 sustain the overdraft of future orders?
With a large number of manufacturers stocking up on production, it is bound to bring some disadvantages to the T400.
First of all, judging from last year’s situation, the craze for T400 was basically concentrated after October, but now there is still some time before October, and supply exceeds demand. It will also appear that once there is a surplus of regular energy, even the best-selling products of Internet celebrities will be in the dilemma of having insufficient fabric inventory. Each manufacturer will rely on price to attract more customers, and in the end they can only sell at low prices.
On the other hand, there are many types of T400, and it is impossible for manufacturers to cover all of them. They can only choose a few types to stock. Once the market trend changes, the types stocked by manufacturers will be A vicious cycle will be formed. Even if the price is low, no one will care about it. It can only be left in the warehouse to gather dust, which not only wastes money but also takes up space.
Finally, all types of gray fabrics have their own characteristics. Although T400 does have some advantages over four-way stretch, four-way stretch also has advantages over T400, such as soft feel. It is a feature that T400 does not have, so stocking too many T400s now will cause aesthetic fatigue and a single type. When the time comes, customers will miss the four-sided bombs and forget about T400, which will still cause the problem of difficult to sell inventory!
Summary
In general, with the traditional off-season With the coming of , the order volume will decrease accordingly. The editor thinks that after this, the phenomenon of weaving inventory will become more common, but it will not last for a long time. If the company cannot afford the cost of opening a large number of looms, it will still We will choose to continue to reduce production. The operating rate has not yet shown a downward trend, but it will definitely decline in the future as orders decrease. Keeping inventory is not a long-term solution. Many textile people are not optimistic about this year, but some textile people and editors still believe that there will be a turnaround in September and October. Even though the textile industry and clothing industry are almost saturated, there is still demand.
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