This year’s weaving orders are mostly supported by home textile orders, while clothing orders have decreased compared with last year. A small number of manufacturers have recently received orders for home textiles from Middle Eastern countries, but most manufacturers have reported that the orders have come to an end. Weaving manufacturers have been really having a hard time recently. The market is as light as water, and the delivery of gray fabrics is slow… In late November, the off-season trend of the weaving market began to emerge. , October was boosted by the e-commerce season and the Christmas season. Both market goods and order goods performed well. The shipment of autumn and winter clothing fabrics was relatively smooth, which drove the shipment of gray fabrics. The high inventory of gray fabrics also decreased slightly. fall back.
But the good times did not last long. This wave of market conditions “came and went in a hurry” and lasted only about a month. In late November, inventories of gray fabric manufacturers rebounded again, making it difficult for manufacturers to balance production and sales.
Continuous accumulation of databases becomes a big problem
Weaving manufacturers will usher in a large-scale reduction in operating hours
The problem of weaving inventory once again becoming a problem for enterprises at this stage. It is found from the data that the recent operating rate of water-jet and air-jet looms in Shengze area is above 80%, which is lower than that in November. As the market gradually declines, gray fabric inventories show an upward trend, and the inventory days return to high levels. In order to deal with this problem, weaving manufacturers have recently heard that some manufacturers have reduced production and reduced operating hours.
Manager Zhang, who owns 100 looms, revealed: “Currently, the orders on hand can only be completed in early December, and the factory’s operating rate has also dropped from 60% to 30%, but later If there are no orders, production will be reduced again. Rather than piling up too much inventory, investing too much money, and strangling yourself, it is better to reduce production.”
From historical experience, the fourth The overall quarterly loom operating rate showed a downward trend. The average decline in the loom operating rate in December was about 10%. We have indeed seen signs of a downward load turn recently. Since the current operating rate is at a historically high level, and considering that some areas require early holidays before the Spring Festival and staggered holidays, it is expected that during the window period from December to mid-January this year, the decline in loom operating rates should be greater than in previous years, and may reach More than 20%.
There may still be some time before the Spring Festival holiday. If the market destocking continues to be unsmooth and the pressure of overcapacity in the market does not decrease, weaving manufacturers may see a large-scale reduction in operations in the future.
Weak demand is transmitted from bottom to top
The polyester factory has planned a shutdown for maintenance in December
At the same time, the demand in the weaving and terminal clothing sectors is at a low level, which has formed a bottom-up transmission to the entire industry chain. From the news, it is understood that the polyester factory has arranged a shutdown and maintenance plan in December.
Since entering the fourth quarter, new domestic polyester production capacity has been put into production, and the supply pressure of various polyester products has also increased relatively. Companies have also cut prices and promoted sales, but to no avail. The cost-end support is insufficient, making polyester long-term. The focus of silk trading is also constantly declining. Therefore, polyester manufacturers often take measures to reduce burdens and avoid risks, and it is inevitable to have early maintenance and holidays.
Part of the polyester maintenance schedule at the end of the year:
From the end of 2020 to the beginning of 2021, some polyester companies are expected to reduce production and burden, accounting for less than 5% of the country’s total production capacity. %, and there is no clear news about the restart of enterprises that have undergone early maintenance and reduction of burdens. The loss of production capacity in the early stage accounted for about 13%. Therefore, new losses are included in the amount at the end of the year, and the total proportion is still less than 20% of the national production capacity. However, leading enterprises have not reduced production capacity for the time being. Therefore, the operating rate of the polyester filament industry remains at around 80% at the end of the year, and the contradiction between supply and demand will be difficult to alleviate in the short term. </p