In the past two weeks, the market conditions seemed to have loosened up, and some gray fabrics and fabrics began to move. Weaving companies also removed part of their inventory, and then there was a phenomenon of warehouse liquidation. However, this phenomenon is actually only an isolated case. , the overall market has been weak for a long time, and now this situation has begun to appear.
Orders are not being accepted
The orders on the market have suddenly dropped since April. A trader and editor said: “Forget it, our company’s orders have been broken. What we are doing now are all from March. From April to now, there is only one order.” We haven’t even received any orders.” Another boss also said: “There are very few orders received now and I estimate that all orders will be completed by the end of April.”
From the textile bosses, we found that the order volume in the market has indeed dropped sharply, but in fact, the biggest pressure for the textile bosses is not the lack of orders. The number of orders is not enough for a day or two, but they can still survive. Really The pressure comes from all aspects.
Raw material prices are too high
First of all, the price of raw materials is too high. According to the current data monitoring of Silk City Network, the weaving start-up rate in Jiangsu and Zhejiang dropped by 1.8% from last week, to only 72.8%. It can be seen that the enthusiasm of weaving companies for production is not particularly high. There must be reasons for not wanting to produce. One reason is that there are few orders, and the other is that raw material prices are currently at a high level.
Although it has been falling this week, because PTA has stopped falling and rebounded, polyester prices are expected to rise again next week. Therefore, raw materials were sold out on April 14, and polyester production and sales directly exceeded 200%. Weaving companies rushed to buy at the bottom. For An, this operation seems to be no problem, but it also reflects how passive the textile industry is as a downstream. A weaving boss responded: “The machine is mainly used to make polyester taffeta. The inventory of gray fabrics is about a month, and 70% of the machine is started to make inventory.”
Product has no profit
Another pressure is low profits. In stark contrast to the polyester market, the downstream weaving market is relatively weak.
A weaving boss who specializes in four-way elastic said: “The pressure we are facing now is order pressure and profit pressure. Orders have decreased compared with previous years, and profit margins have also shrunk.”
Another boss also said: “Although cotton imitation memory and cey plain weave are currently selling well, the profits are average, mainly due to sales. Cey plain weave is for spring and summer clothing, and cotton imitation memory is for autumn and winter.”
The situation of another weaving factory is even more bleak. Their person in charge said: “Without orders, there is no profit. The products can only be sold at a loss, otherwise they will not be sold at all. The increase in raw material prices will have a great impact.”
This year’s “Gold, Three, Silver and Four” is actually very embarrassing. This is all because the Spring Festival is too early this year. The market started early in early February. Many companies reported that they received orders in February and less in March. By April, it was gone, and the holidays pushed the market forward by a month.
In April, which is supposed to be the peak season, the market atmosphere does not make people feel the vitality of the market. The performance of weaving is indeed unsatisfactory. On the contrary, the raw material market has increased a lot due to the ups and downs on the cost side, but there is no price increase due to demand. , will still be a piece of chicken feathers after the madness. Now it is one step closer to the off-season, and it is expected that the market operating rate will still fall next week.
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