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The fragile global economic recovery is facing new obstacles. The surge in cases of new coronavirus infections may continue to shut down businesses and make consumers nervous.
The recent epidemic situation has surged again, and the textile and apparel industry chain is in the low season.
The recent surge in cases of new coronavirus infections has not only suddenly tightened the nerves of the global epidemic prevention work, but also cast a shadow over the textile and clothing industry in the off-season. With no improvement in foreign trade, and before and after the recovery of domestic trade, the textile industry is destined to encounter a low season in the history of this summer.
1. The serious loss caused by the epidemic has not stopped
According to the latest report of the International Federation of Textile Manufacturers (ITMF), from the beginning of the pandemic on March 1, 2020 to June 8, 2020, textile orders around the world have plummeted by more than 40%. Among them, orders from fiber producers fell 42%, orders from spinning mills fell 44%, orders from weaving mills fell 46%, and orders from apparel manufacturers fell 37%.
Recently, the apparel brands announced their sales results for the first quarter.
The epidemic situation in foreign countries is still spreading, and the serious loss caused by the epidemic clothing companies has not stopped, and continues...
2. The price of polyester factory is unbearable, and the production and sales are reluctant
Since June, international crude oil has risen, which has driven up the prices of polyester raw materials, thereby stimulating the price of polyester yarn. But in recent days, the price of polyester yarn has started to fall again. Throughout the first half of this year, the price of polyester yarns has generally declined, and the prices of various products have declined by about 20% compared with the beginning of the year. Compared with the same period last year, it is even more terrible. Specifically, FDY products have dropped by nearly 28% compared with the same period last year, POY products have dropped by more than 30% compared with the same period last year, and DTY products have also dropped by about 26% compared with the same period last year.
In terms of production and sales, generally speaking, the manufacturers before the holiday will have more or less hoarding operations, but before this Dragon Boat Festival holiday, the manufacturers have poor enthusiasm for replenishment. In addition to the promotion of sales of POY products driven by the promotion of polyester manufacturers, the production and sales of other products are in general. The production and sales of more than one hundred quotations are only one day, and can even be described as "barely".
"Low price", "zui low price", "lower price"! Weaving enterprises: There is no “bottom line” for order taking!
It can be seen that the orders of all links of the entire industry chain are shrinking, and the order of weaving manufacturers as the intermediate link has dropped significantly, which also directly leads to weak market bargaining power, and the profitability of enterprises is even more difficult!
In the past, the gross profit of weaving manufacturers was about 10%, but now the profit is basically left at about 5%. Some of them are even slightly loss or flat, plus a lot of drag on the payment, which makes this year’s weaving boss more difficult.
From the perspective of various cost expenditures, the rental costs of labor and water and electricity have not decreased compared with previous years. Some scarce types of labor have increased their prices at the beginning of the year. The raw materials have been slowly rising in May, and the market competition is fierce. Most cloth owners still have not increased their prices. , I'm afraid to increase the price of the few orders.
Taking the conventional polyester taffeta on the market as an example, the current market price is less than 1 yuan/meter, but the recent price increase of raw materials has exceeded 1,000 yuan/ton. Due to the large production capacity and low threshold, the output of polyester taffeta is also amazing. The social stock is also large, which has led to weak bargaining power of manufacturers, and in the face of today's market, unable to increase prices. Based on the current raw material prices, 190T polyester taff has entered a loss mode.
I heard in the market that high-end looms are used to make low-end products. It can be seen that manufacturers have done everything they can to order. A person in charge of Chunya Textile's fabric manufacturer said, "Now I don't have too much bottom line to take orders, as long as I don't lose money, I will do it."
It is reported that at the moment when the domestic and foreign markets have not fully recovered, the market inventory is high and the homogenization competition is fierce. Therefore, "low prices", "zui low prices", and "lower prices" have appeared. Take 320T Chunya Spin as an example. The finished product price of 320T Chunya Spin this year is more than 3 yuan. Last year, the price was still the price of grey cloth. In this kind of low-priced fabric, the textile factory owner is not thinking about making money, but how to use the funds. Withdraw to reduce inventory.
For the market in July, most textile people are still mentally prepared. After all, according to historical conditions, if there is a big market in the weaving market, it generally occurs from March to September, October to October, and July to August is generally unlikely to happen. That is, under the off-season, the market will have to face The pressure of accumulated inventory is just that this year's inventory pressure is too large, and it may not have been encountered in the past six years. Therefore, it is necessary for textile people to recognize their position in the chaotic world and consciously limit inventory, not blindly. Production, turn funds into inventory, and avoid falling into a difficult situation under the pressure of competition!
Dongyang Lai Chi Environmental Protection Technology Co., Ltd. has always been committed to the research, development and production of medical non-woven fabrics, spun-bonded non-woven fabrics, elastic non-woven fabrics, and non-woven fabric products. The elastic non-woven fabrics produced by it can be replaced, recycled, and reused, and can no longer worry about health problems.
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