In The Off-Season, The Raw Materials Are Rising Against The Trend, And The Weavers Should Plan The Autumn And Winter Orders In Advance?

Recently, Cotton Network investigated several chemical fiber factories in Xiaoshan, Hangzhou. One of the manufacturers mainly engaged in vortex spinning, after starting construction in March, encountered the return of some orders and the breach of contracts, and immediately felt that the market was not good. At the beginning of April, half of the production capacity was closed, which belonged to the local enterprise that cut the production capacity earlier. Therefore, the inventory of finished products is low at present, and the production and sales are basically balanced, so the cash flow is relatively abundant.

Another chemical fiber manufacturer is still fully open. The monthly output of yarn is about 650 tons. The current production and marketing rate is only half, and the remaining half can only be reserved for inventory. Therefore, the inventory of finished products of this factory is far higher than that of the same period last year. In general, the average operating rate of local chemical fiber plants is between 50% - 60%, and the average operating rate of downstream dyeing and finishing plants is also about 60%. The epidemic has led to a sharp reduction in export orders, which has had a great impact on the entire industry. There have been sporadic factory closures or bankruptcies. However, the overall production capacity is still seriously oversupply, so the price competition between each other is fierce. All factories are selling goods without profits or even slight losses.

From the perspective of the whole industry chain, the raw material end accounts for the high profit point, because the raw material enterprises are relatively concentrated, and several large petrochemical enterprises have almost formed monopoly in the industry, with relatively uniform prices. Recently, the crude oil rebounded sharply, so the price of polyester staple fiber also rose along with it, rising by 100 yuan/ton within a week. The downstream can only accept it, and the bargaining power is very low. And the downstream yarn can not follow the price rise, just hope to try to ship more goods to reduce inventory pressure.

However, the textile foreign trade is still in a standstill. According to the feedback of enterprises, 90% of enterprises still have not received foreign trade orders, and the entire export trade is in a standstill. It is understood that only a small number of enterprises stopped sending orders without being affected by the epidemic. Even if they did not stop, the order volume declined sharply. The original order volume was hundreds of thousands of pieces, but now it is almost thousands of pieces, even tens of thousands of pieces are considered big orders.

It's not easy for foreign trade this year, so turn to domestic trade~~This makes the domestic trade with limited space become more "crowded" this year, the pressure of competition intensifies, and profits continue to shrink. According to Sina Finance, there are about 700 foreign trade enterprises transferring to domestic trade every day. How terrible the data is

The boss of a domestic trade company said: "There are almost no hot products now. As long as one or two hot products come out, everyone will rush to do it. The heat will drop in ten days and a half months.". Like the masks and helmets before, any kind of order will be quickly digested by the market before it can ferment and grow, and even many enterprises are overdrafting the future orders in autumn and winter, producing in advance, to maintain the current vacancy.

"Our company makes some high-end fabrics, such as silk, rayon and acetic acid, and basically exports them to foreign trade, mainly from the United States. In the past year, our sales could reach more than 100 million yuan, but this year, because of the severe pneumonia epidemic and the severe disaster in the United States, our orders dropped by more than 90%." A trader in charge said. In addition, their company has a large number of employees, and the production cost of the enterprise is also high. However, it is difficult to ensure normal production and operation with the current turnover. At present, they are totally trying to support it. As for how long it can last, everyone is not confident.

The order reduction is so large that the enterprise is inevitably in a loss state. Of course, there are not only them but also many enterprises in this state, especially textile enterprises that specialize in foreign trade or have a large proportion of foreign trade.

According to the data analysis of the National Bureau of Statistics, the number of loss making enterprises in our textile industry each month in the past two years is relatively stable, about 3000. However, the number of loss making textile enterprises rose rapidly this year, reaching about 6500 in February and March. Although the number of loss making textile enterprises decreased slightly in April, it still did not return to normal.

Loss seems to be an unavoidable problem in our textile industry at present. How to avoid or reduce loss has become the top priority of all textile enterprises.

It is reported that some textile enterprises have properly reserved yarn and grey cloth at the low price to wait for the market to improve in the later period. They believe that after the epidemic situation has improved significantly, they can act quickly to expand their profit space, so as to make up for some losses before, but it is also difficult to grasp the risks.

The textile off-season was a bit unexpected, lasting for a long time and showing no signs of improvement. For textile enterprises, the high load production and stocking for two or three months is acceptable to most enterprises, but it will be a little difficult if they are in this state for half a year or even a year. As a result, many textile enterprises began to adjust their strategies, from waiting for customers to place orders to selling to customers, especially those who have been doing business for years.

Many textile enterprises have encountered the situation that the number of orders has plummeted and a large range of losses have occurred, and will continue to ferment with the epidemic. Before the economic recovery in Europe and the United States, it was difficult for foreign trade orders to meet the needs of all textile workers. Especially recently, the textile market has turned pale again. Although it is already summer, the textile industry is about to experience the most piercing "cold winter".