As the new year approaches, what is the current situation of textile companies that have experienced a year of ups and downs in production, sales and operations? How to arrange production and sales before and after the holidays after cotton prices rise? Judging from media visits to some companies in East China, the entire industry has mixed feelings, and the market may usher in a small upsurge after the year.
The operating situation of small and medium-sized textile enterprises is not optimistic
Currently, many textile enterprises are already studying how to spend the Spring Festival holiday. This period of the year is the most difficult time for textile companies. Operators have to spend a lot of energy every day and face problems dealing with “money”: appeasing people who come to ask for debts; raising funds everywhere. Funds guarantee the normal expenses of workers’ wages, water and electricity bills, etc.
Some media recently visited areas in the Yangtze River Basin where small and medium-sized textile enterprises are densely populated, and found that the overall operating conditions of these enterprises are hardly optimistic.
According to inquiries from many companies, the current situation of textile production and cotton operations in the mainland is tepid. status. After experiencing the ups and downs of the cotton market in the second half of last year, many companies are in the process of recovery as cotton prices heat up.
In September and October last year, some small factories with smaller strength and weak ability to compete with the rapidly changing market suspended operations. Expectant. At this stage, the cotton spinning market is on the rise, and some small factories have just resumed production and processed some products for small and micro orders. At the same time, companies that are in normal production and sales have no plans to increase or limit production. First, they are worried about the market changing again. Second, orders are not abundant. Third, the peak production and sales season of the yarn clothing market has passed at the end of the year, and the demand for raw materials is balanced or slightly reduced. .
Judging from the orders held by enterprises, most enterprises currently focus on order organization. In Dafeng, Yancheng, the CEOs of many textile companies have been visiting users in sales areas to discuss business and sign orders. Judging from what we have learned, there is basically no problem with the order production arrangements of textile companies until the end of the lunar calendar. The focus of the organization now is the production orders in the first quarter of 2020 after the Spring Festival. It is reported that local textile companies with good production and sales situation have placed orders until April of the New Year, but the orders are small and scattered.
It is the end of the year, and textile companies also have their own plans for how much raw material inventory to put in, but companies that intend to increase Not much. The majority of companies choose Qinjin and Fast Sales. The survey shows that it is common to keep raw materials in stock for 30-45 days. Due to the production transfer after the Spring Festival, not many companies specifically arrange to increase inventory, because the market supply still reassures companies. As long as they have orders and funds, It is no longer a problem to organize raw materials to be put on the truck in real time for production.
It is understood that textile companies organize raw materials through different channels and methods, and the resulting cost advantages and disadvantages are also different. Most textile companies still operate at the same price and focus on capital preservation. In recent years, there have been fewer profitable companies. Textile companies in the east, which have higher labor expenditures and higher management costs, admitted that it has been difficult to keep their companies running in the past two or three years, and profitable companies account for about 30%.
The good news is that the rising prices of gray fabrics make it difficult to ship goods
Looking at the entire textile industry, good news has spread frequently in the raw material market recently: OPEC and Russia, the major non-OPEC oil-producing country, have reached a new production reduction agreement, and international oil prices have risen sharply; there are good news about Sino-US trade Out of the news, the two countries reached an agreement on the text of the first phase of the economic and trade agreement; the internal price of PTA has been stable and rising; the ethylene glycol futures have once again risen strongly to a new high… The textile market was suddenly in a boil, and the downstream weaving trade market was trending. The atmosphere is relaxed.
However, despite the excitement, textile trading companies also need to face the news of rising prices for gray fabrics and difficulties in order shipments.
On December 17 last year, some printing and dyeing factories in Shengze received a notice to limit the production of stereotype machines by 50%. Some printing and dyeing factories have also received notices of production rotation. As soon as the two news came out, it immediately caused great difficulties for the printing and dyeing factory to ship goods. Due to the early holiday, most printing and dyeing factories will be on holiday before January 10th. Fabric manufacturers were already busy shipping goods before the year, and the limited production and rotation will suddenly extend the delivery time. Whether the order can be successfully completed is a matter of course. unknown.
Most of the orders placed by clothing merchants at this time could not be completed years ago. Therefore, some fabric merchants have stopped accepting orders, and some fabric merchants also accepted orders in the year before. After delivery. Some merchants said that although there are not many orders on hand now, and there have been almost no orders since early December last year, due to the production restrictions of printing and dyeing factories, it may be difficult to deliver orders if there are orders. It is better to stop accepting orders directly. The orders we are taking now are subject to requests from migrant workers to go home early.We didn’t start working until after the Lantern Festival. Due to the holidays of printing, dyeing, coating and other post-processing supporting manufacturers, the delivery time was also longer than usual.
Affected by the closing stage at the end of the year, demand is weakening, and orders are mostly operated in the form of “short-term, flat and fast”, with only a few Printing and dyeing factories and garment factories are rushing to deliver orders before the Spring Festival. The current orders of spinning and weaving mills are not very full. The order performance of individual spinning enterprises and weaving mills that produce differentiated varieties is acceptable and can basically last until after the Spring Festival. Although the inventory situation of conventional yarn is not very serious, there are some cases of equipment shutdown.
This year’s textile market generally has a holiday earlier than in previous years. In addition, printing and dyeing factories have to catch up with environmental protection production restrictions at the end of the year, forcing the entire The industrial chain is further ahead of schedule for the holidays. Some unfinished and unplaced orders will be moved to the end of the year. Based on this, it is speculated that the market may usher in a small climax after the year. </p
