Is The Textile Market Experiencing A "Dark Time"?

Time has arrived in late May, the entire textile market has been shrouded in "decline", the market "single hard to find" argument is rampant.

Is the market really bad now?

What are the causes?

Grey cloth inventory is more than half a month.

At present, the accumulation of grey cloth inventory is indeed very serious in the market.

Because the off-season in the first half of this year is nearly half a month earlier than in previous years, most of the weaving enterprises have more than half a month's inventory.

Using a water jet loom to weave 300 meter cloth every day, a large and medium size weaving mill of 500 loom looms can weave cloth of 300*500*30 equal to 4 million 500 thousand meters in a month, even if it is half a month's inventory, it also has more than 200 million meters.

And if about two million meters of stock is stacked up, what a spectacular sight it is.

An industry and trade integration, the main polyester taffe, Oxford cloth, also owns its own weaving factory responsible person Shen manager told the author: for weaving factory, inventory is obviously more, pressure is big, put forward a very big test to capital.

Liu, another textile company, also said that the number of orders for big customers this year was small. Last year, there were many varieties of hundreds of thousands of meters, but this year there was nothing more.

From the understanding of the situation, grey cloth inventory is indeed quite a lot, and there are also some cases of dumping in the market.

This shows that this year's textile business has indeed declined over the past two years, and the accumulation of grey cloth inventory is also difficult to digest.

The market is slightly affected, and normal operation is guaranteed.

But some cloth owners do not think so. For them, this year's market is not as good as two years ago, but there is no exaggeration.

The manager of a textile trading company told me that their main customer groups are some clothing brands in Shanghai and Shenzhen's external orders. Compared with last year, the number of orders is about 20% less, but the basic profit can still be guaranteed, and there is no problem in normal production and operation.

Although Sino US trade war has affected exports to the United States, exports to Southeast Asia, Europe and Japan and South Korea have not been greatly affected. Instead, because of exchange rate fluctuations, the renminbi has depreciated a lot. Some of the money that has not yet been settled in foreign exchange can be exchanged for more than RMB at a time, which is just like that of white picking up.

The main business of a textile enterprise is the four side elastic fabric, which is mainly exported to Vietnam, Burma and other countries. The chief executive of Li said that the foreign trade of Southeast Asian countries has not been greatly affected this year, though the profit is less than 5% of last year, but within acceptable limits.

On the contrary, after the devaluation of the RMB exchange rate, their profits have been improved a lot.

Therefore, this year's business is really not as good as the previous two years, but for some cloth owners, it is simply that the list is a little bit smaller, and profits have fallen a little, far from being able to survive.

The impact of Sino US trade frictions on the former has also been limited. Even the depreciation of the RMB exchange rate has brought some substantial benefits.

No matter whether the market is good or bad, it seems that it has its own reasons. What is the whole market like?

Why do we feel so different?

There are more stocks, fewer bills and lower prices.

First of all, to be sure, this year's market is indeed down.

It is a fact that this year's off-season is half a month earlier than before. It is also a fact that the backlog of the grey fabric is very serious. The profits of the enterprises have been reduced and even more can not be refuted. These are all objective realities.

However, these can be explained in terms of economics, or supply and demand.

The reason is actually very clear to everyone. Since the second half of last year, the production capacity of loom looms in the outlying areas has been put into operation too much at a time, and all the conventional products are produced. The conventional products on the market are oversupplied at once, and the backlog and profit reduction are not difficult to understand.

Shen said that at present, there was a continuous rise in the warehouse of the factory. From the beginning of last month, raw materials have been falling down, resulting in the price of polyester taffeta in factories.

Conventional products are relatively large in production capacity, and the surrounding grey fabrics still have a certain impact on our production of grey cloth.

After investigation, the author also found that almost all the conventional prices were reduced, and the conventional products such as imitation silk, polyester taffeta and so on, whose profits were very thin, almost all depreciated by 0.1-0.2 yuan, but the sales situation was not very satisfactory.

Therefore, the current downturn is indeed an objective fact. The production capacity of conventional grey cloth is indeed surplus, and there seems to be no sign of improvement in the short term.

A little less, a little more.

Nowadays, people are seeking to be different. Clothing enterprises are starting to take the opportunity to change, bloom more, pay attention to fashion design, fashion and speed.

In the fabric market, the order has changed from the "big bill" to "small batch, multiple batches".

Influenced by design elements, apart from some conventional fabrics, the market share of some differentiated and functional fabrics is increasing year by year.

Liu also said that the varieties of orders are much more complicated than before. Customers will raise various requirements, and they are all relatively small ones.

But the good news is that the factory is not busy in the near future, and some small bills can be delivered soon.

It is foreseeable that such small single mode will become more common in the future. Cloth bosses should also change their thinking in time and find out a reasonable coping style.

Don't compare with last year!

The mentality is mainly related to people's expectations. If expectations are too high, the difference between the final result and the expectation is too great, so it is easy to lose their mental balance.

In the first half of last year, because of the pformation of water jet looms in Jiangsu and Zhejiang provinces, the "rotten cloth" like spring Asian spinning and polyester taffeta appeared to be in short supply. The daily profit of a water jet loom exceeded 80 yuan.

At the same time, there seems to be endless orders in the market. The list is too small to do. The list is too cumbersome to bother to do. Anyway, there will be no shortage of orders.

But that was a special phenomenon in a special period. When the time came back three years ago, the spring Asian spinning and polyester taffeta were famous for their small profits but quick turnover. The stock of grey cloth was not much better than it is now.

If we take the first half of last year as the benchmark, the current textile market can not be described in a simple word, but two years ahead?

This is just an ordinary year with relatively poor market.