Some time ago, a textile boss who had been in business for many years finally sold dozens of looms and indicators after much consideration. There must be great difficulties behind selling the hard work that has been in business for many years.
The boss confided: “I have been working in this industry for more than ten years. From working as a security guard to buying dozens of looms and renting a small factory for Large factories can make a little money a year by doing contract processing, but this year there are obviously fewer orders. From raw materials to workers to taxes, the costs of each link are still quite high. After thinking about it, I might as well forget it and sell the machine and go home to play with it. Play with your grandson!”
As we all know, textile companies produce “big profits but small profits”. If there is a problem in any link, it is easy to wipe out the profits. According to data from the National Bureau of Statistics, from January to May, the manufacturing industry achieved a total profit of 1.95194 billion yuan, a decrease of 4.1%. From January to May, the textile industry above designated size achieved a total profit of 39.11 billion yuan, an increase of 3.2%. The textile, clothing and apparel industry above designated size achieved a total profit of 30.79 billion yuan, a decrease of 1.3%.
Profit is the driving force for all human actions, and this is also the crux of the recent poor mentality of market participants. Since the beginning of this year, various costs have continued to rise, causing weaving companies to experience severe tests. Once a company is careless, it is likely to face the consequences of operating at a loss and losing all its hard work. Recently, cloth bosses are experiencing this trouble!
666, the raw materials go smoothly with a wave of “V”!
Since June, the price of raw materials has increased, causing constant turmoil in the filament weaving market. In the Jiangsu and Zhejiang regions, some chambers of commerce have called on companies to reduce production and appropriately increase prices. Many textile people have also posted price increases in their circles of friends, saying bluntly: Weaving production costs are too high and companies can no longer afford it!
As of mid-July, the originally noisy raw material market has returned to calm. PTA has gone from the daily limit to the lower limit. Polyester manufacturers have successively reported sluggish production and sales of 10% to 20%. This wave The trend of the inverted “V” comes and goes in a hurry!
Raw materials have skyrocketed, leaving weaving manufacturers with rising costs and loss of profits!
According to a textile person: “Terminal demand has not improved, the industry has overcapacity, and many peripheral production capacities are still slowly coming up. In the off-season when supply and demand are already out of balance, raw materials are like this The sharp rise has further compressed the originally slim profits. Although the price of polyester filament has begun to fall this week, it will not fall back to the previous price in the short term.”
Profits are as thin as paper. After taking a big bite of the raw materials, how much is left?
Although some weaving manufacturers have recently increased the price of gray fabrics by 0.05-0.10 yuan/meter, taking advantage of the increase in raw materials, the actual transaction volume has not changed much. In the era of , most manufacturers still chose to bear the costs themselves to maintain a harmonious relationship with customers, which also led to the continued dilution of the few remaining profits.
“There is no profit, we can only feed the factory!” said the owner of a textile factory in Wujiang area. “If there is a good market, it will be confused by the rise in raw materials.” Indeed, the crazy surge in raw material prices during the off-season has become a criticism of many textile bosses recently.
According to the practice of previous years, for every 1,000 yuan increase in raw material FDY, the price of gray cloth must increase by at least 0.10 yuan/meter to make it flat. Some Oxford cloth and suede with higher weight The rise in cashmere prices should reach 0.30-0.40 yuan/meter to level off, but the fact is that under this wave of market conditions, weaving manufacturers have not followed the rise. Most manufacturers still sell goods at the same price, and profit dilution is a certainty.
The profits in Changxing, Haining and other places are also not optimistic
In addition, in addition to Wujiang, the profits in Changxing, Haining and other places are also not optimistic. The Changxing area mainly produces brushed fabrics, which are mainly sold to Nantong and other places. In June, when raw materials surged, most cloth owners stocked up on raw materials and gray fabrics. Although they thought they had bought goods at low prices during the year, the actual profits Still obviously diluted.
According to a market participant, generally speaking, when POY rises by 2,000 yuan/ton, brushed cloth needs to rise by 0.50-0.60 yuan/meter to level. Now the market has only risen. 0.05-0.10 yuan/meter. “The off-season atmosphere of the market is relatively obvious at present. Driven by raw materials before, the market has left a wave of goods, but it has become dull again this week. Now the profit from taking orders is too low, but it is not enough if we don’t take them. It is more difficult to do business.” Changxing Mr. Sun, a regional trader, said.
In addition, it is said that Haining’s warp knitting market has seen a relatively obvious off-season atmosphere recently, with the market operating rate dropping to 50-60%, and there are not many new orders. Excessive production expansion has led to obvious overcapacity in the market. Warp knitting products are already losing money due to the surge in raw materials. “Now we just want to have summer vacation;Waiting for the arrival of the peak menstrual editing season from August to November! “The person in charge of Haining No. 1 Warp Knitting Factory said.
In fact, cloth bosses have recently reported common old problems, mainly from the pressure on the cost side. Currently, companies are facing raw materials, electricity costs , labor, and financial interest are relatively high pressures. In terms of employment, the problems of difficulty in recruiting and high labor costs are also common. Some powerful companies have reduced employment and labor intensity by replacing new equipment and upgrading technology, but the market as a whole is still facing is facing greater internal and external pressure.
However, confidence is more important than gold. Although most cloth bosses complain about the current market, they are still willing to stick to it, because the sun always comes after the storm. The orders that have been suppressed will eventually come in the “Golden Nine and Silver Ten”!
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