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Recently, there has been a small rise in the textile market. The upstream polyester yarn prices have risen, the grey fabrics have stopped falling, and the delivery time of the dyeing factory has been extended ...
As the so-called price rises, there is hope. What is the situation in the market now?
Printing and dyeing market: busyness is not all caused by demand
As far as the dyeing factory is concerned, due to the limitation of 50% of the production capacity of the setting machine in Shengze area, the output has been reduced suddenly. At the end of the year, traders are rushing to make orders for the next spring and summer models. The dyeing factory's right to speak is gradually increasing. It is understood that most of the printing and dyeing factories in Wujiang area will be closed in early January and will stop billet collection at the end of December.
We all know that a large part of the reason for this wave of market conditions is caused by environmental protection and limited production. Compared with the real peak season, it is actually far from it. According to the salesman of the dyeing factory, some employees have begun to return to their hometowns. As the number of workers decreases, the progress of dyeing will be delayed.
It can be seen that the extension of the delivery time of dyeing factories is not driven by demand. Moreover, many traders have shifted orders with tight deadlines to areas around Shengze, such as Jiaxing, Huzhou, etc., so Xiaobian believes that this wave of excitement will not last long.
Fabric market: raw material prices rise, grey fabrics stop falling, but demand is not reliable, everything is futile
Recently, the fabric market has picked up slightly. Due to the rise in raw materials last week, the price of grey fabrics has finally stabilized. In terms of products, the current stretch fabrics and simulation silk series are better off. A manufacturer of artificial silk said: "We have been doing well in the near future, and our orders have been very sufficient, and we have to do it until next year. Now there is only less than one month of inventory in the factory. In terms of prices, prices have fallen a lot this year. Now, our price is stable. ”Coincidentally, a dyeing factory is not saturated because the stretch fabric is saturated. It can be seen that the current performance of stretch fabrics on the market is also good.
But some cloth bosses said: "We do imitation memory, and now we have no orders on hand, but we can't take a vacation so early. The production department weaves it as next year's inventory, and the trade department sits in the office to see the proofing situation."
Some people drink porridge, some people eat meat. From this point of view, at present, only artificial silk and stretch fabrics have improved, and other varieties still perform in general. The overall environment of the clothing market this year is poor, the market is in recession, and people ’s consumption concepts are changing. The number of clothes to buy is decreasing, resulting in fewer orders for brands than in previous years. Large orders become small orders, and small orders become proofing. The demand is weak, and the business of the entire industry chain has been affected to some extent.
At the same time, as the textile market starts to decline this year, in order to obtain orders, various enterprises will allow customers to credit to a certain extent, and the situation of arrears will intensify. However, if the customer does not pay for a long time, the financial pressure of the textile enterprise will be relatively large. If the arrears are not returned, the capital turnover will be problematic.
Grey cloth transactions are in arrears, but raw materials need to be paid in cash. Moreover, the wages of workers are also a big head. For example, a 50-person factory is calculated on the average of 6000, and the monthly salary is 300,000, but 6000 is actually The numbers are very conservative. Now there are not a few skilled workers in textile mills with more than 10,000. For the Ministry of Trade, the salespersons pay wages every month, and by the end of the year, they are settled in proportion to the commission. There is also a small amount of rent, utilities, taxes, and so on. Once the money comes back, the boss will either have to borrow money to pay it off, or it will only go bankrupt or even run away.
Postscript
In summary, the textile market itself has not picked up, but the wave of environmental protection and production restriction at the end of the year by printing and dyeing manufacturers has made the market "busy." Coupled with the easing of Sino-U.S. Trade relations and the optimism of stocking tropical stocks years ago, the market has been boosted, but Xiaobian believes that don't be fooled by the current wave of market conditions, terminal demand has not improved, and textile enterprise inventory is still High, next year, whether the textile market can usher in the peak season is still unknown.
Source: Global Textile Network
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