Global Textile Orders Drop By 4! Half Of The Gross Profit Margins Of Weaving Factories Are Shrunk! The Boss Who Is "Not Enough To Eat" Is At Risk Of Losing His Family.

Entering the June, the traditional off-season arrived earlier, and the overall turnover of the market was even more dull. Facing the increasingly high inventory, textile boss is really "panic"!

A fabric supplier who made a brand name said: "at present, there are 5 or 6 million meter orders stacked in the factory, and I dare not make them. Our products are of high cost and good quality. If we want to compete with the market goods, the price has no advantage at all. Now the market is still in the air. I am thinking of starting a holiday at the end of June. "

In fact, such a situation is common in the market.

According to the sample enterprises of China's silk net monitoring, the inventory of finished products has been normal for more than 1 and a half months. Most weaving mills have stored millions of meters of grey cloth on hand, and the larger the scale, the more inventory they have.

In addition, according to the latest report of the International Federation of textile manufacturers (ITMF), the textile orders from around the world dropped by more than 40% from the outbreak of the March 1, 2020 pandemic to June 8, 2020. Among them, orders for fiber producers decreased by 42%, orders for cotton mills decreased by 44%, orders for textile mills decreased by 46%, and orders for garment manufacturers dropped by 37%.

It can be seen that the orders in all links of the whole industry chain are shrinking, and the order of the weaving factories as the intermediate link is the most obvious. This also directly causes the market to be in short supply, the bargaining power is weak, and the profits of the enterprises are even more difficult.

Bear the risk of losing money and support workers!

I once heard a story: in capitalist countries there is a theory of "inverted milk", that is to say, even if we prefer to pour milk, we will not give it to the poor. This scene first appeared in the economic crisis of 1930, when the economy declined and milk was not sold, but the US E dairy industry poured 25 thousand gallons of fresh milk every day instead of directly distributing it to the more difficult poor.

The reason for this is to create a scarcity of milk and then raise the price to sell for higher profits. As a result, the global fast fashion giant H&M has to burn 12 tons a year in order to solve the stock crisis that broke out in 2013 without discount or price reduction.

But this road will not work this year, especially in the "not enough" weaving Market.

In the past, the gross profit of weaving factories was around 10%. Now the profit is almost 5%. Some of them even suffer from a slight loss or even a lot of pressure.

From the cost point of view, the cost of labor and electricity rent has not decreased compared with the previous years. Some of the scarce jobs have been increased at the beginning of the year. Raw materials in May are slowly rising, and the market competition is fierce. Most of the cloth owners still do not have a raise in price.

　　       Take the most conventional PET taffeta in the market as an example. At present, the market price is less than 1 yuan / m, but the raw material price increase has exceeded 1000 yuan / ton recently. Due to the large production capacity and low threshold, the output of polyester taffe is also astonishing, and the social stock is also large. This also leads to weak bargaining power of manufacturers, facing the current market, unable to increase the price. According to the current raw material price, 190T polyester taff has entered a loss mode.

Before the market heard that using high-end looms to make low-end products, we can see that in order to pick up the manufacturers, it is all right. "In the past, my business philosophy was to make quality customers, not to price war, but this year's market is so, we have more and more stocks, so I can only put down my perseverance and sell products at a low price." "I do not have a big bottom line at the moment, so I will do it as long as I do not lose," said a person in charge of the fabric manufacturer of Chun Ya textile.

　 It is reported that in the domestic market, the market has not yet fully recovered. At present, the stock market is high and the homogenization competition is fierce. Therefore, there are "low price", "lowest price" and "lower price". Take 320T spring Asias as an example. This year, the price of finished products of 320T spring yarns is more than 3 yuan, and last year the price is still grey cloth price. At this low price fabric, the boss of the textile mill is considering not making money, but how to return the funds and reduce the stock.

"At present, half of the machines in our factory are being opened. We are now pushing the sales to take orders. As long as we do not lose, we will do it, mainly to feed workers, and fear that the market will get up, and the workers will not be able to make it more difficult." Another textile boss Shen general said.

When the raw material is up again, I will have a holiday.

The 3 month old textile boss who is "not enough to eat" is more worried about the future market, coupled with the recent two outbreak of domestic outbreaks, exacerbating the boss's "cautious" mindset.

In late March, the loom rate in Jiangsu and Zhejiang provinces was also slightly lower. It is reported that at present, the opening rate of water looms in Shengze and Changxin has dropped to 6-7; the rate of starting up in Haining and Changshu warp knitting market has reached 7; because of weak orders, Xiao Shaoyuan's production is more active and weaker, and it is about 3-4.

　　 Sun Yat - Ho, a trader in the Changxin market, said: "orders are lighter in the market recently, and many friends who open factories say they want to go back to their hometown on holiday, and wait for a good market to come back." Holidays and production cuts have been the problem of textile owners in recent years.

"Since June, we have only opened less than half of the machines, mainly used to produce spring yarns and Tav. At present, our raw materials can be used at the end of the month. If the price of raw materials is still rising or not falling down, then we will consider the holiday." Wang Jun, a textile owner with nearly 300 looms, said. Another money with more than 200 looms has been on vacation for a week, and in his words, the holiday is cheaper than starting.

Near the Dragon Boat Festival holiday time, orders for domestic and foreign trade market have not yet been good, new market single fault, so more and more textile mills began to consider holidays, less 3-5 days, more than 7-10 days.

The epidemic has led to great changes in the textile market products and patterns this year. Now foreign trade enterprises are desperately looking for the domestic market, and the domestic market is stabilizing customers through prices. Generally speaking, enterprises are controlling their operating costs and finding their own place in the market.