Looking back at the market situation in 2019, most spinning mill owners talk about the term “market winter”. More and more textile people complain that business is getting harder and harder to do, operating expenses continue to rise, and sales volume continues to rise. It is getting more and more difficult to improve, and the competition content is constantly being refined…
Sell it if you give me money! Small and medium-sized spinning companies have no choice but to sell goods at low prices due to reduced orders
For small and medium-sized spinning companies, reduced orders are a common problem. “In the past year, our yarn mill has received orders for production, and we have taken orders as soon as they come in. But near the end of the year, a lot of inventory has still accumulated.” The person in charge of a spinning mill in Hebei said with emotion that many manufacturers are currently in the stage of clearing inventory, and even It means that selling cotton yarn for money is also a helpless move.
It is understood that in 2019, some small factories with smaller sizes and weak ability to compete with the rapidly changing market stopped working. As the cotton spinning market improved, some small factories resumed production. Process some small and micro order products. For enterprises that are in normal production and sales, there is no plan to increase production as the new year is approaching. First, they are worried about the market changing again. Second, orders are not abundant. Third, the peak season of production and sales in the yarn clothing market at the end of the year has passed, and the demand for raw materials has increased. Balanced or slightly reduced.
Specifically, the production and operation status and plans of textile enterprises across the country are also different. The start-up rate of enterprises depends on the current production situation. For example, the start-up rate of private textile enterprises in Nantong, Jiangsu is about 5% to 10% higher than that in Yancheng. %. The reason is that the textile industry in Shanghai and Hangzhou, which are adjacent to Nantong, is relatively developed. Nantong has always been the main supplier of raw materials such as cotton spinning, clothing, and bedding in these areas, so the market conditions are more favorable than those in northern Jiangsu.
For some textile companies, the time before the Chinese New Year is busier than usual. If you observe carefully, you will find that a considerable part of the orders received in the textile market at the end of the year are foreign trade orders, because during our Spring Festival holiday, they are actually in working hours, and they also start the New Year after Christmas. The holidays for foreign customers are over, and it is not surprising that the long-standing backlog of fabric demand has exploded during this period. A weaving company in Shengze that produces jacquards and embroidery mainly exports to the Arab region. It just received an order not long ago. It is a busy time for business. During this period, they are working hard to catch up with the orders from the previous year. It can be said that reconciling accounts, collecting payments, maintaining customers, and appeasing workers are the current main tasks of most textile companies.
In addition, many companies in the market focus on order organization in order to achieve a smooth transition before and after the holidays. Many textile companies in Dafeng, Yancheng, are in the process of visiting users, negotiating business, and signing orders. It is understood that the order production of local textile enterprises has been arranged until before the Spring Festival, and the current focus is on the production orders in the first quarter of 2020 after the Spring Festival. Textile companies with a good local production and sales situation have orders on hand until April 2020, but the orders are small and scattered.
The purchase of raw materials and the withdrawal of funds are at odds with each other. The choice of textile enterprises: “Let the bullets fly for a while”!
In terms of raw material procurement, textile companies still have limited inventory reservations. It is the end of the year, and after facing sudden changes in raw material prices, we can analyze it calmly instead of making hasty judgments.
Textile companies also have their own plans for how much raw materials to prepare, but not many companies intend to increase inventory. Manager Zhu, the person in charge of a weaving factory that specializes in pongee and polyester taffeta, said that after many fluctuations in raw materials this year, he would not immediately take action when he sees the price of raw materials rising again. If it had not been rising continuously, I won’t change my plan to buy more raw materials. Mr. Wu, the person in charge of another Nantong weaving company, also said that the recent raw material prices are not stable and it is unclear whether the prices will really rise, so he still chooses to wait and see. Today’s textile workers often choose to “let the bullets fly for a while” when faced with rising raw material prices.
Currently, the majority of companies choose Qinjin and Fast Sales. The survey shows that it is common to keep raw materials in stock for 30 to 45 days. Due to the production transfer after the Spring Festival, not many companies specially arrange to increase inventory. As long as there are orders and funds in hand, it is not a problem to organize the raw materials on the truck in time. .
At the same time, for most textile companies, the market situation this year is not as good as expected. The upstream and downstream capital chains of the textile industry are very tight, so the account period is much longer than in previous years. The Shengze family has an annual output value of 20 million yuan. Mr. Hu, a trader who mainly produces printing products, complained that this year’s account period has been extended from one month to three months in previous years. Now that the Chinese New Year is almost here, there is still an account of 1 million yuan. It has not been recovered outside, and I don’t know how much money I can get back before the New Year.
The friction between China and the United States has eased, and the textile market in 2020 has a good sign
In market research, Textile people generally believe that in addition to overcapacity, Sino-US trade friction is the main reason for the poor market this year, and good news about Sino-US trade has recently been reported.
China and the United States recently signed the first phase of an economic and trade agreement. According to previously disclosed information, when the agreement is reached, a certain percentage of the tariffs imposed by the United States on us during trade frictions will be exempted. In 2019, �Although the U.S. trade friction has eased several times, the U.S. has always gone back on its word and no substantial progress has been made. The agreement reached this time is different. The reduction and exemption of additional tariffs can be said to be real.
In addition, gray fabric manufacturers have large inventories this year, and another major factor is the large inventories in the downstream garment industry. Due to the expectation of a cold winter the year before last, most clothing companies have stocked up on cold-proof clothing. In addition, this year’s warm winter has led to further slow sales of down jackets and cotton clothing. The clothing industry is afraid to stock upstream, which has also caused a supply and demand for gray fabrics. imbalance.
Entering 2020, the new season of spring and summer clothing is also being prepared. Unlike down jackets, spring and summer fashion has relatively high requirements for style, so it needs to be re-printed and purchased. Therefore, the rigid demand for fabrics still exists. “Currently, we have received orders for April, all of which are imitation silk fabrics. There is not much inventory in the factory recently, and we are busy rushing to make weaving products. The imitation silk fabrics may increase a bit in the beginning of next year.” A company in Shengze area owns Shanghai Said the textile boss of Baitai Loom.
As for the market situation in the new year, dragged down by the big market situation in 2019, although textile companies dare not be overly optimistic, they are also full of hope. </p
