The Tide Of Elimination Is Coming: 170% Of Production And Marketing Will Not Be Able To Conceal The Declining Trend.

Yesterday, the production and marketing of polyester and silk products in Jiangsu and Zhejiang provinces finally came to a long time. At half past three p.m., the average daily production and marketing estimate in Jiangsu and Zhejiang provinces reached 170%. Since the beginning of the summer textile off-season this year, polyester production and marketing has been difficult to boost. Downstream is affected by the reduction of orders, sudden risks (trade wars, etc.), and more factors affecting the production. The average number of days of production and sale in one month is counted by fingers.

Production and marketing can hardly conceal the declining trend, and textile bosses are very rational.

In fact, our community is a "market mirror". When the market gets warmer and the business is booming, the activity of the community tends to increase significantly. On the contrary, when the market is not good, the communication between the community will be less.

Compared with the production and sale of polyester in the past two or three months, the average daily production and sales of polyester products averaged 170% yesterday. But judging from the degree of activity in the community, we are still relatively calm. Our community matrix has many weaving bosses, who have the most say in the market.

　　 The reason for the recent analysis of polyester production and sales is probably that on the one hand, the price of polyester is at a low level. From July to now, the price of polyester has been decreasing along with the price of polyester raw materials. However, at present, the price of polyester has been hard to say. On the other hand, the production and sales promotion may also be just the time node that the weaving manufacturers just need to prepare. Although the market is not good this year, July and August is also the traditional textile off-season, but there is always a need for stocking, there are still enterprises with production and production cut-off, but most enterprises still maintain production status.

Unrestrained expansion of capacity, car crash, Sino US trade war, elimination tide approaching

This year is the textile industry "water adverse" year, lack of orders, high inventory, terminal demand for a long time, the Sino US trade war and Vietnam War is more robust...... the whole textile industry chain is not easy. But the main reason is the unrestrained expansion of capacity in recent years. The unrestrained expansion of production capacity is even more serious than the damage brought by trade wars.

Since 2016, environmental protection in southeast coastal areas has eliminated a lot of polluting weaving capacity, and these backward weaving capacity is not "on the spot", but instead of "rebirth".

The weaving capacity that was eliminated from the southeast coastal areas was transferred to the central and western regions and Southeast Asia, benefiting from the local preferential policies and low production costs.

　　 Since the second half of 2018, the capacity of these expanded fields has been put into production. The weaving market has ushered in a large number of new capacity to enter the market, and the result is predictable. The supply market is far greater than the demand. In the buyer's market, the weaving factory can only serve as Mermaid meat, the price is lower, the profit is thin, like the cicada, the competition pressure is unprecedented, but the warehouse is still full of difficult to sell grey cloth.

This year, everyone is saying that terminal demand is weak. In fact, terminal demand has not decreased compared with previous years, but the growth of terminal demand seems to be a drop in the bucket in the face of blowout expansion of weaving capacity. The growth of demand side is far from being able to digest the new production capacity. What is more sad is that the Sino US trade war is becoming more and more fierce, and the demand for foreign trade has been hit hard.

From the past development trajectory, the textile industry is also cyclical, just like our textile bosses in our community laughing at "good three years, bad three years, bad and bad three years." Now, we are in the "bad three years" period of time, the entire textile industry chain will face severe challenges. The textile enterprises that will not persist in the cold winter will be eliminated. Those enterprises that have passed the past will have a good time of "three years". The market is cruel. They will never sympathize with the weak. The market will be fair and will give the people who are sticking to the final prize. Textile man, are you ready for the challenge?