Affected by the global epidemic, many textile companies in my country are currently taking measures to help themselves. One of the more common methods is exporting to domestic sales. However, as the current domestic market demand is still limited, the ensuing price matching and bidding have led to a decline in the prices of a series of fabric products.
According to relevant market data statistics, on April 3, the average market prices of 10S denim, 32S twill, 40S combed poplin, 30S rayon, and 45S polyester-cotton were 8.47 yuan/meter and 4.65 yuan/meter respectively. yuan/meter, 6.68 yuan/meter, 3.62 yuan/meter, and 4.58 yuan/meter, down 10.86%, 12.02%, 11.18%, 4.41%, and 3.49% respectively year-on-year.
Enterprises cut prices to seize the market
Under the circumstances of high inventory and low demand, the phenomenon of selling goods occurs one after another in the market. According to market feedback, since mid-March, the price of gray fabrics in various places has dropped by 0.1 yuan/meter to 0.2 yuan/meter, and in some cases by 0.4 yuan/meter.
A relevant person in charge of a fabric company in Zhejiang told reporters that this price reduction is mainly due to two factors: first, the first half of the year is a critical moment for many companies to develop markets and maintain customers; second, affected by the epidemic , many companies have doubled their sales pressure and hope to stimulate the market through price cuts. “We mainly do orders from Italy. At present, the company has increased the proportion of domestic sales to 80% and reduced the proportion of foreign orders to 20%. Now, it is common in the industry to adjust the proportion of domestic and foreign orders. It is expected that the domestic market will form a situation of vying for the top spot in the first half of this year.” ” At present, the pie in the market is getting smaller and smaller. When the quality is the same, customers will definitely choose manufacturers with cheaper products to cooperate. At this time, the company will suffer a small loss. When the epidemic passes and the market picks up, it will gain both The trust of customers also lays the foundation for subsequent cooperation.” the person in charge explained.
In addition, industry insiders pointed out that there is another important contributing factor to the recent price reduction of fabrics, that is, the price of raw materials has dropped significantly, and the prices of polyester, pure cotton yarn, etc. have declined to varying degrees, which has caused fabric companies to There is room for price reduction. According to the China Keqiao Textile Index, due to the sharp drop in international oil prices, the prices of PTA and ethylene glycol have also fallen sharply. Polyester filament has also been doomed, and prices have continued to drop. The polyester filament market in Xiaoshao area has been declining month-on-month. The quotations of manufacturers have dropped significantly. The quotations of POY, FDY and DTY have dropped significantly. From March 30 to April 4, POY has fallen by about 650 yuan/ton to 830 yuan/ton, and FDY has dropped by about 650 yuan/ton to 830 yuan/ton. The price is around 700 yuan/ton to 800 yuan/ton, and DTY has fallen between 600 yuan/ton and 650 yuan/ton.
Polyester staple fiber prices also fell. The central price of 1.4D×38MM direct-spun polyester staple fiber in Jiangsu and Zhejiang was around 5,640 yuan/ton to 5,700 yuan/ton, with a decrease of 350 yuan/ton to 375 yuan/ton. about. Recently, the market price of pure polyester yarn has dropped month-on-month. 32S pure polyester yarn has been quoted at about 10,750 yuan/ton, a decrease of about 250 yuan/ton; 45S pure polyester yarn has been quoted at about 11,700 yuan/ton, a decrease of about 300 yuan/ton.
In addition, domestic cotton futures prices have fallen below the 10,000 yuan mark, causing downstream procurement to be afraid to act rashly. The market price of pure cotton yarn in Xiaoshao area fell month-on-month. The price of 30S rayon yarn was reported at about 13,500 yuan/ton, with a decrease of about 300 yuan/ton to 320 yuan/ton; the price of 40S rayon yarn was reported at 14,700 yuan/ton to 14,800 yuan/ton. Around 300 yuan/ton, the price of rayon yarn continues to drop.
According to industry insiders, fabric prices will continue to fall in the future. “Today, the demand for textiles and clothing in various countries is declining, and the reduction in orders has far exceeded last year. In order to withdraw funds as soon as possible, the industry may start a ‘price war’.”
Insufficient orders are in a dilemma
The “Gold, Three and Silver” should have been the traditional peak season for textile fabric companies. Now, Enterprises are stuck in the “quagmire” of product price cuts. It can be said that the recent price cuts in the market have exposed the current dilemma facing the textile fabric industry.
According to the weekly survey results of the China Textile and Apparel Federation from March 25 to April 1, among the 190 companies that have started operations that week, the proportion of companies with order volume reaching 80% of normal levels is 33.7%, and the proportion of companies whose order volume is less than 50% of the normal situation is 23.2%. The shortage of export orders is even more prominent. Only 9% of companies have export orders that have reached 80% of normal levels, and the proportion of companies with export orders that are less than 50% of normal levels is as high as 61.2%.
The report pointed out that insufficient orders have become the primary difficulty faced by enterprises in production and operation. According to weekly reports and cluster survey data, from March 25 to April 1, 80% of enterprises reported that there was an issue of insufficient orders. , the proportion increased by 23 percentage points from a week ago; 85.7% of industrial clusters reported that there was a shortage of orders, and the proportion increased by 9.8 percentage points from a week ago.
It can be seen from this that the current competitive situation in the fabric industry is extremely severe. Some companies faced difficulties in recruiting workers in the early stage. After many setbacks to recruit employees back to work, they faced a sharp drop in orders and another shutdown for holidays. During the Tomb Sweeping Day holiday, companies in Shandong, Henan, Jiangsu and other places stated that they would use the Tomb Sweeping Day holiday to appropriately extend their corporate holidays to cope with the current market impact.
In response to the current situation, relevant textile and garment industry associations have issued initiatives to maintain market order and fair competition. A few days ago, the Shandong Textile and Garment Industry Association issued an initiative: resolutely crack down on unreasonable price reductions and coordinate the formulation of industry benchmark prices.
The industry reshuffle is in progress
What is certain is that a quiet The “shuffle” of information is underway.
From a recent reporter’s interviewJudging from the situation of textile fabric companies visited, company leaders generally believe that the situation facing the industry may be more severe in the next period of 2020. This unoptimistic view is still based on the judgment of the epidemic.
A textile practitioner who did not want to be named believes that in the future, the situation of “big fish eating small fish” in the textile industry will be more severe. “Although the industry’s ‘cold winter’ in 2019 has arrived, everyone still has hope for the future market and will persevere. However, this year, affected by the global epidemic, it will be further difficult for small and medium-sized enterprises to maintain basic operations. .” He predicts that perhaps in the next three years, the number of fabric companies will decrease by at least 30%.
“Currently, as a company, losing weight is the only way, and saving money to survive is the way out.” Song Lingyan, founder and general manager of Jiangsu Jingcheng Textile Co., Ltd. said frankly that the impact of the epidemic will be reflected Throughout 2020, in the later period, it will involve technology, comprehensive service capabilities, and even some financial supporting facilities. For some small textile enterprises, it will be more difficult to build a sales network solely and rely mainly on price competition, because it is difficult for small enterprises to provide comprehensive services. This also means that in this crisis, service-focused companies will stand out.
The China Textile and Apparel Industry Federation stated that at present, the development of the global epidemic is highly uncertain, and it is still difficult to predict when the turning point of the epidemic will occur. It will still take a long time for the US and European markets to release signs of recovery. In view of the tight capital chain problem of enterprises, it is still recommended that enterprises carefully arrange production loads, raw material inventories and investment projects, and vigorously prevent and control capital chain risks; at the same time, pay full attention to the support measures introduced by local governments and financial institutions at all levels, and actively strive for policy support. my country’s export industry chain is large in scale, but it will take time for the domestic demand market to fully recover, and consumption characteristics are also significantly different from those in the U.S. and European markets. It is very difficult for export companies to resell all products to the domestic market in a short period of time.
The China Textile and Apparel Industry Federation suggests that companies should first evaluate their own production models, management models and main product characteristics, and make reasonable choices among strategies such as moving to the domestic market and exploring other export markets. </p
