New Orders Will Shrink, Grey Cloth Will Accelerate Depreciation. Just After Resuming Work, Textile Enterprises Began To Consider Reducing Production.

Recently, the domestic epidemic has been effectively controlled, and the capacity of Jiangsu and Zhejiang markets has been resumed in succession. It is understood that the boot rate in Shengze has been restored to 7-8. While the production capacity is gradually coming up, Xiaobian has learned from the market that some factories are considering lowering the start-up rate. What is the matter? Is it because the employees are not in place?

High price raw materials produce low price grey cloth.

Last week, due to the decline in international oil price epic level, PTA and ethylene glycol both fell and cost surface support was insufficient, leading to the continuous fall of polyester.

　　 At this time, many manufacturers have expressed their losses. "Now it is equivalent to producing low price grey fabrics with high priced raw materials. Customers have been lowering prices. Our twill peach skin has fallen by 1!" A factory that specializes in peach skin. Coincidentally, another manufacturer of memory cloth also has deep understanding: "now many manufacturers around us have reduced the start-up rate. It's not because of the workers. The workers are basically there. Besides Hubei, the main reason is that the raw materials are not clear now. Our gray fabric has been devalued, and we can not afford cheap raw materials recently. The salesperson who worked with us actually didn't sell it. I think polyester dropped too hard. I want to see if it will go up later. "

　　 The order is slow, and the storehouse can not pile up.

Overcapacity is a commonplace problem. Especially in conventional varieties, each factory has a certain amount of inventory. In the absence of orders, manufacturers will choose to produce conventional grey cloth, which will inevitably lead to more widespread inventory of conventional grey cloth, and the problem of overcapacity is even more prominent.

The owner of the above production memory cloth shook his head in sorrow, saying: "at present, our regular varieties basically have about 100000 meters of stock. The warehouse has burst, and now it has been piled up to the home. If the order does not come again, it can only reduce the starting rate. Although it is now in the golden three seasons, it is already feeling the off-season. The wave of the new year's market is slowly fading away, and it's really hard for customers to delay their orders.

According to the sample data from China's silk net, the inventory of weaving factories is about 38 days, and inventory is slow. In addition, due to the outbreak of foreign epidemic, foreign trade has been greatly affected, which has led to a sharp decline in the number of foreign trade documents, and the enthusiasm of manufacturers is being suppressed. "It is easy to sell or sell. Even if it is sold, it is easy to lose money. It is also unrealistic to take a vacation. Artificial labor, rent and water and electricity are all there.

　　 Cloth boss generally faces greater financial pressure.

Under the condition of high inventory and low demand, the textile bosses will generally be faced with the pressure of inventory and capital. The grey cloth in the warehouse has already occupied a lot of money. Wages, water and electricity, rents and so on must be paid in cash. In this case, if the gray cloth is not realized, unless the big family is big enough, there will be no pressure on the capital, otherwise the enterprise will not be able to support it enough. Cash can ensure the healthy operation of enterprises.

Based on the above considerations, this time came a list, even if the customer reduced the price and took the loss, but the enterprise could only take the lead. Next, to stabilize the customers and form a good cooperative relationship, business was not done once, and the two was to realize the inventory and ease the financial pressure. It can be envisaged that the next market will be filled with cheap selling and production cuts. Therefore, at this time, it is a wise move to choose production reduction and reduce the start-up rate.

afterword

In the market downturn, many manufacturers will consider reducing production and holiday. In last year 7 and August, many factories and dyeing factories set up high temperature leave, but this year this situation is likely to be ahead of schedule. If the next order is difficult to continue, many manufacturers will consider reducing production or even having a holiday.

At present, affected by the epidemic, the demand for clothing at home and abroad has declined. Clothing factories do not make clothes. Buyers do not buy Fabrics. Weaving factories do not buy raw materials. The whole industry chain is facing high inventory problems. However, some manufacturers are optimistic about the future market: "as long as the epidemic situation is controlled by foreign countries, Sino US trade has also made substantial improvement. Foreign trade has led to domestic trade, and there is still hope for the market. There is also hope that raw materials can be stabilized and no longer fall." Next, cloth boss needs to think carefully about how to arrange production, adjust price and control inventory.