The helplessness of textile people in 2020!
From the difficulty of recruiting workers to the serious lack of orders, from the rapid sales of gray fabrics that have just resumed to the current pile of inventory, this year’s weaving market can be said to be difficult to describe. “The days when the machine was turned on and everything was golden” can never go back. Many cloth bosses lamented: This is a major reshuffle in the industry! Those who can’t survive will die on the beach!
Walking to the market, the time period that should have been busy was empty. According to the practice of previous years, now should be the prime time period of “Gold, Three Silver, Four Red and May”, but there are very few samples on the market. All of these are black swan events caused by the COVID-19 epidemic.
The textile market says that “3 points depend on domestic trade and 7 points depend on foreign trade.” As foreign countries The epidemic continues to ferment, with the number of confirmed cases worldwide exceeding 1.8 million outside of China. Especially in the United States, which is one of the world’s largest economies, the number of confirmed cases has exceeded 630,000. Global concerns have intensified, demand has dropped sharply, and foreign trade orders have almost come to a standstill. If we compare domestic trade and foreign trade to two human legs, if one leg is lame, how can the other leg walk well?
What is the current situation of the textile market that has been ravaged for a long time? The editor will take you to see it in detail.
Ingredients: Fall!
It is difficult to rise but easy to fall, and there is still 400-500 room for decline
This year’s raw materials are also A mysterious existence. In previous years, there was a wave of price increases for raw materials after the beginning of the new year, but this year they only fell, and kept falling below the bottom line! Every time I think that the raw materials are at the bottom and the time for bargain hunting has arrived, many weaving companies still “buy the bargain halfway up the mountain”. Specifically, the current quotation for polyester filament FDY products is around 5,400 yuan/ton, the quotation for POY products is around 4,875 yuan/ton, and the quotation for DTY products is around 6,700 yuan/ton. Compared with the prices at the beginning of the year, both prices are higher. varying degrees of decline.
And Whether it is crude oil, PTA, or terminal demand, there is currently no favorable support, and the probability of polyester prices continuing to decline is still very high. Mr. Hu, who specializes in pongee and cool silk cotton, said: “We suffered a huge loss in raw materials this year. We stocked up a wave of raw materials before the year, thinking that they would increase a bit after the start of the new year. However, due to the epidemic, raw materials alone are now in short supply.” The loss is nearly 3 million, and the orders are not good. No matter how low the price of raw materials is now, we will not touch it.”
Weaving: High inventory!
Conflicts in production and shutdown every day
In the textile industry chain, the weaving market is now The party with the greatest pressure has directly changed from a seller’s market to a buyer’s market. Although raw materials have always been purchased as needed, most of them are purchased in cash. At the same time, workers’ wages, rent, water and electricity are also under great pressure. The most serious problem is high inventory. At present, the weaving market is basically in a state of difficulty in production and sales. During the Qingming Festival, some weaving companies have taken the opportunity to stop some machines, but some companies are still under high load. It’s a dilemma whether to turn off the machine or not. If you turn off the machine, you will face problems such as the loss of workers and bank debt collection. If you don’t turn off the machine, all the products produced will be inventory. If you cannot sell it, it is equivalent to piling money in the warehouse.
There are different voices in the market regarding whether to cut production again.
Mr. Hu said: “From the establishment of the factory in 2003 to now, the machines have never been shut down, but now the operating rate has dropped to 70%, and the inventory has reached 300 Ten thousand meters, even if the market is not good by the end of the month, it should be because there will be no further reductions. Because once workers are lost, it will be difficult to recruit them again when the market improves. We should produce some light-weight cloth now to relieve the pressure.”
Mr. Xu, another person who specializes in Oxford cloth and specializes in the domestic trade market, said: “Currently, only 2/3 of the machines are in operation, and the inventory is around 1.5 million meters. The market shows no signs of recovery. It is very difficult for the market to pick up. In particular, most of our country’s textiles still rely on exports, but foreign countries are consuming them in advance. The epidemic has left them with no income and no money to buy. I am not optimistic about the future market, and I even think that this market will It will last until the second half of next year. Orders have not improved in May, so we are going to suspend production and take a holiday.”
Dyeing factory: No work!
Start and stop, shipment is fast
Whether the textile market is good or not depends on the dyeing factory knew. After the market opened, the dyeing factory actually ushered in a wave of “Indian Summer”. When the market first resumed, there was a shortage of workers in dyeing factories, and the backlog of orders from years ago exploded again. The dyeing factories were still relatively busy, and the shipping cycle was about 15-20 days. But now the situation in the dyeing factory has greatly reversed, and the operating rate is basically at 55%Fluctuate. There are many dyeing factories that are open but not closed.
The person in charge of a dyeing factory said frankly: “The situation in the dyeing factory is very bad now, and orders have shrunk. It’s serious, it’s only 1/2 of what it used to be, and the dye vats are only 1/3 open. Order follow-up is insufficient, funds are tight, 1/2 of the workers are taking turns, and they can only pay a small amount of subsidies.”
The person in charge of another dyeing factory also said: “Compared with the same period in previous years, the dyeing factory is completely different. The shipping cycle is only about one week. At present, we only make orders from our own weaving factory, and there are no orders from outside at all. , the machine starts and stops, all in all it is very miserable.”
Textiles basically go through the printing and dyeing process, and the current situation in the dyeing factory can realistically reflect the current situation of the market and what the demand is. The time of recovery is already unknown.
Raw materials, weaving, and printing and dyeing are currently in a miserable state. It is said that the market will not be good in 2019, but At least there is still some profit in all aspects, but it is much less than in previous years. But this year, it is really hard to say that it is good. Of course, at a time when the epidemic is dragging down demand, there are still many hot-selling products, with meltblown fabrics and non-woven fabrics at the forefront. WeChat Moments are filled with all kinds of spot advertisements, and the prices are even higher every day. Non-woven S specifications, 25 grams for example, the market price in the past few days was around 12.5 yuan/meter, but there is basically no spot.
In fact, the price of non-woven fabrics was not that high before, but due to the lack of anti-epidemic products, demand for them has skyrocketed, and prices have risen strongly. Although meltblown fabrics and non-woven fabrics have been very popular recently, after visiting the market, most fabric owners still have no plans to switch production. The market prices are too chaotic, and most of the people selling these products now are reselling them, which does not make much sense. I still want to make my own products. In terms of the entire polyester family, the demand for short-fiber non-woven fabrics is only 5% of the entire polyester demand. The popularity of small products cannot cover up the decadence of large demand.
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