“The plan for the year begins with spring.” After the Spring Festival, many textile companies in Shandong, Zhejiang, Jiangsu, Guangdong and other places have started work one after another, working overtime to grasp production and seize market opportunities in the Year of the Ox. How do the owners of spinning companies view the market conditions in 2021? What are the new plans for corporate development?
Remain optimistic and focus on product development
Although the textile industry still faces many uncertainties in 2021 factors, but many spinning company bosses are generally optimistic about this year’s market.
Wu Wanyang, general manager of Jiangxi Fengzhu Cotton Spinning Co., Ltd., said: “There are still many uncertainties this year, and I remain cautiously optimistic about the market. The main negative factors include the epidemic and tight transportation containers. As well as the U.S. restrictions on Xinjiang cotton. We usually receive orders in March, but no orders in April. At the same time, we will control the rhythm of cotton procurement, and yarn is generally ordered for 50 tons. I have been in the textile industry for 40 years, and I have experienced I see that the market sometimes rises and falls violently, and I feel that I cannot be blindly optimistic. There are a lot of goods now sold by middlemen, which will have a certain impact on the later market.”
Jiangsu Donghua Zhang Shouxiang, chairman of Textile Co., Ltd., is also optimistic about this year’s market conditions. He said that there are three reasons. First, after 2020, some companies in the spinning industry have closed down, and the overall competitive environment has improved. Second, the country emphasizes internal circulation and will take corresponding measures to stimulate the economy. Third, product inventory will be almost exhausted in 2020, and demand will continue to increase in the future. “Foreign spinning companies such as Vietnam, Indonesia, Pakistan and other countries have a big gap compared with us in terms of production varieties, completeness and efficiency of the industrial chain. I think the demand for textile exports will increase this year. Although there are uncertainties The main reason is the epidemic, but this year is different from the beginning of 2020, and I think there are more opportunities.” Zhang Shouxiang said.
This year, most spinning companies are more aware of the importance of product development. Many spinning companies prioritize product innovation over expanding production capacity.
Zhang Shouxiang said that Donghua Textile will not adjust production capacity this year and will focus on two directions in terms of products. First, quality comes first. Whether new products or traditional products, they must meet or exceed customer expectations. ; The second is to make some innovative varieties based on market needs. Qian Fuhua, chairman of Zhejiang Huaxiang Textile Co., Ltd., also said: “We do not pursue scale expansion. In the field of hemp series yarns, we are currently ahead of the country and have formed our own characteristics. The epidemic has basically had no impact on us. The current production and sales situation is better than in previous years. In the future, we will continue our path of differentiated varieties.”
Industry experts also analyzed the textile industry in 2021 from the perspective of product inventory and terminal demand. The market overall is optimistic.
Experts believe that with the market’s expectations for the weakening of the impact of the epidemic in 2021 and the recovery of clothing demand, the inventory levels of my country’s yarn companies have declined significantly since the fourth quarter of 2020. Inventory levels in December 2020 have reached a new low in the past five years. Although terminal demand has not yet fully recovered, after experiencing inventory digestion and factory shutdowns in the two quarters from March to September 2020, my country’s current yarn inventory level has been significantly lower than the same period in history. On the other hand, looking at the midstream weaving link, the current fabric inventory is basically at the normal level for the same period in history. The high inventory left by the epidemic has also been fully digested in the second and third quarters of 2020, and the pressure has been significantly relieved. From this analysis, in terms of yarn and fabric links, the current industry chain inventory is already at a healthy level.
In terms of downstream demand, although terminal demand has not yet fully recovered, under the current light global clothing inventory, experts expect that brand owners will gradually start normal supplies in 2021. library rhythm. Taking the United States and China as examples, whether it is the overall market or leading listed companies, after nearly a year of inventory clearance, the overall inventory has now returned to a level close to historical normal, so high inventory will no longer be a problem for brands. The core focus is, in addition, with the gradual recovery of overall market demand, the replenishment demand from the terminal will gradually return to the normal level of the past few years, which is also expected to allow the overall orders of the cotton spinning industry chain to start operating normally.
Shortage of technical personnel, consider machine substitution
Spinning companies have always been facing labor shortages A long-term problem, this year, the lack of skilled workers has become the top issue for many spinning companies.
“The current production scale of our company is 130,000 spindles, and the products are mainly pure cotton medium-count yarn. From the market point of view, I feel that the market situation this year is stable and good. Our development The strategy is to develop steadily, with the main energy spent on variety development, product structure adjustment, equipment transformation, and product quality improvement. In the later period, it will develop in the direction of intelligence and production capacity will increase. The biggest difficulty currently faced is still the human problem, technical personnel There is a shortage and the employees are older.” Wang Ranlao, chairman of Shaanxi Jingtai Textile and Chemical Fiber (Group) Co., Ltd., also said frankly that the competitive pressure on enterprises mainly comes from Xinjiang cotton yarn and foreign cotton yarn. Their raw materials, electricity bills, and labor costs are low, which is good for The market impact is huge.
Jiangsu Donghua Textile Co., Ltd. is also facing the problem of labor shortage. Zhang Shouxiang said: “In terms of talent training, first, it is recommended that relevant departments establish a home for business leaders to make them Become a driving force for cultivating corporate talents��. Second, for textile enterprises, the government may introduce relevant preferential policies to encourage technical talents to stay in enterprises. ”
Similar to the problem, Wu Wanyang said that in 2020, Fengzhu Textile will increase investment in technical transformation when the market is relatively poor. The purpose of technical transformation is to realize machine generation. After the replacement of humans and machines, the number of personnel will decrease, efficiency will increase, and employee benefits will also increase accordingly.
Experts believe that to solve the problem of talent shortage, on the one hand, enterprises must continue to move towards intelligent production and Automation transformation reduces labor. On the other hand, universities can join forces to launch school-enterprise cooperation and jointly cultivate talents. In addition, textile companies should improve employment benefits and retain technical talents.
Expansion or transformation to become stronger is the direction
In 2021, many spinning companies plan to expand production capacity.
Zhou Lan, general manager of Sichuan Jinhui Textile Co., Ltd., said: “We only make polyester and cotton medium and low-count yarns. Recently, the supply of products has been in short supply, so we have plans to expand production. However, because the current processing cost of conventional polyester and cotton products is too low, the price difference between Sinochem, imitation Dahua and Dahua products is small, which cannot reflect the company’s supply chain advantages. For the planned new production capacity, the current problems are market positioning and equipment selection, which require some professional advice. ”
Xu Xiaolin, chairman of Suzhou Shixiang Biofiber Co., Ltd., said: “Not only do we need to add vortex spinning equipment, but our surrounding peers are also considering expanding production capacity. ”
Companies that have no plans to expand production capacity have also taken action in terms of equipment and technology. Zhou Lijun, general manager of Danyang Dansheng Textile Co., Ltd., said that the company has 50,000 spindles , 200 looms, the products are mainly shirt fabrics and workwear fabrics, the spinning equipment has all been changed to Siro compact spinning, the products are mainly Tencel, Modal and polyester-cotton blended products.
“The development of the cotton spinning industry must be strong, not big. The yarn market will be good in 2021, but if the raw materials increase too much, the profit margin of the yarn will immediately become smaller. Enterprises can only reduce costs and tap potential, and respond by focusing on high quality, low consumption, and improved efficiency. Our company is now 70% pure cotton combed yarn and 30% chemical fiber yarn. It has solved the process and technology problems of high quality and low consumption and entered the high-end market of yarn. “He Tingxing, general manager of Changzhou Kexu Textile Co., Ltd. said.
Experts believe that whether it is expansion or technological transformation, enterprises must align themselves with high-quality development and seize the yarn The high-end market, making “profitable” high-quality products.
Although terminal demand has not yet fully recovered, under the current light global clothing inventory, experts expect that in 2021 In the year, brand owners will gradually start the normal rhythm of replenishment, and the demand for replenishment will gradually return to the normal level of the past few years. This is also expected to allow the orders of the entire cotton spinning industry chain to start operating normally.</ p
