“As long as you have money in your pocket and production orders, it doesn’t matter when you want cotton, what grade you want, or how much quantity you want.” When communicating with the person in charge of a textile company, I often hear such statements.
In the current cotton buying and selling environment, taking into account market risk factors, the raw material inventories of most companies generally remain low. Take a small and medium-sized textile factory in the Yangtze River Basin with 20,000 spindles and more than 100 workers as an example. The normal raw material inventory is 100 tons, which is equivalent to the company’s monthly cotton consumption. It is different from the stockpiling of hundreds or thousands of tons in the past. The ingredients are in stark contrast.
The interviewed business leaders said that now their main energy is spent on market order procurement and corporate management potential and efficiency improvement. After resuming production in the fight against the epidemic, most companies are busy processing and producing orders on hand after the Spring Festival, and then ushered in a slight rebound in the domestic demand market. Although there are uncertainties in market prices, supply and demand quantities, varieties, etc., there are still concerns about the upcoming closures. For small textile companies, this is undoubtedly a new opportunity for survival.
At present, the production and operation of small and medium-sized textile enterprises in the Yangtze River Basin is in a tepid state, with a startup rate of about 80%. Some existing production orders can be produced until August to September. However, the strength and softness of domestic demand will change with time and season. If foreign trade is difficult to recover, coupled with the downward impact of the COVID-19 epidemic on global economic activities, the actual production situation in the third quarter is expected to be relatively weak, and the economic trend of the entire cotton spinning industry is hardly optimistic. . At present, many small and medium-sized textile enterprises are busy looking for orders and ensuring operation, and the procurement situation is uneven.
For most textile companies, survival is the first priority, followed by profitability. We have seen that many companies are making great efforts to save energy, reduce consumption and reduce costs. When purchasing raw materials, make repeated calculations and comparisons to try to get suitable and affordable raw materials. Most companies arrange full-vehicle production during the low power supply period at night, and the equipment and use of people and vehicles are small but precise. The internal management of the company is also strict and strict on the basis of humanization and institutionalization. The person in charge of the company said that today’s cotton spinning market has relatively high interest transparency and does not expect to make a sudden fortune due to sudden changes in the market. Only by abiding by the rules of market economic development, paying attention to trends, controlling operations, grasping advances and retreats, and not being overjoyed when winning and not disappointed when losing, can we Better foothold, survive and develop in today’s market. </p
