From Sprinkler Looms To Masks And Protective Clothing This Year... Is It A "Draught" Or A Hole For Itself?

Since the resumption of labor resumption in February, the number of new crown pneumonia infections in the world has increased slowly from 100 thousand to 200 thousand, and has been growing faster and faster. Up to now, more than 9 million have not stopped.

Under the unprecedented impact of the epidemic, the production and operation of the textile industry has been greatly affected. Orders can not be reached, the price of cloth is decreasing and the stock is rising. Just as the whole textile industry was in the doldrums, the concept of speculation has made some people seem to see life-saving straw and put in valuable liquidity to invest in it.

Mask: from "hard currency" to "unsalable goods"

At the beginning of the year, by the sudden outbreak of the new crown pneumonia and the lack of domestic mask production capacity, the mask industry turned into a new draught, and anything that stained with the word "Mask" would turn into two brands.

Manager Wang is the head of a fabric enterprise. He sniffed business opportunities as early as February, invested 500 thousand yuan to register a medical Equipment Manufacturing Company, and began to produce "KN95" medical mask that was difficult to obtain during the epidemic.

According to current capacity, the factory can produce nearly 10 thousand masks a day. However, due to the sharp decline in demand, by the end of May, Mr. Wang had temporarily overstocking about 1000000 KN95 masks stocks in the temporary transformation factory.

Even so, we dare not stop production. A large number of workers in the original fabric factory have gone through the difficulty of relying on the mask market, and when the fabric orders are equally bleak, what will those workers do if the mask production stops?

Because the threshold of mask production is not high, but the profit is very rich, and the demand of the conventional grey fabric is reduced because of the epidemic situation, so the textile people who choose to transfer the mask are not very few. In the month of 2-3, the profit of masks was indeed very good. But in April, because of the soaring price of raw material melt cloth, enterprises could almost only make a break even. After May, the masks on the market began to oversupply, the books might be made, but the products produced could not be sold.

Polyester taffeta, spring Asian textile: 100 million meters big single tide, the price is lower than originally.

In addition to mask, affected by the epidemic, protective clothing has become a rigid demand in the market.

As the output of non-woven fabrics is insufficient, and the price has been raised more and more, cheap spring Asian spinning and polyester taffeta have entered our field of vision.

Because of the epidemic situation, the weaving enterprises' orders are missing, and for a long time, they are in low opening rate. Polyester factories have a high inventory of polyester, and crude oil prices have historically dropped.

Cloth can not be sold, raw material prices are so low, in mid April, the price of 210T polyester taff is only 0.8-0.9 yuan / meter. But in the hype of protective clothing concept, there appeared a 130 million meter large list in the market. Many textile enterprises indicated that they took advantage of this wave of market to empty the inventory of 210T polyester taffeta, and more enterprises turned the machine into 210T polyester taffeta, and the price of the product also rose to 1.2-1.3 yuan / meter. Because of the low production threshold and the heat coming up, a large number of weaving factories have switched production.

But it didn't last long. Just over a week ago, the heat of taffeta dropped rapidly, and the price dropped even lower than the original, only 0.7-0.8 yuan / meter. When Xiaobian recently interviewed weaving enterprises, a weaving company said that there were no products to sell recently, but the most difficult selling must be 190T and 210T polyester taffeta.

In addition, a trader also said that unlike the non-woven fabrics, the protective clothing made by spring Asian spinning and polyester taffeta can not be degraded naturally, so it is basically impossible to export to European and American countries.

Water jet looms: high profit waking up, leaving only excess capacity.

The emergence of a draught and a swarm of people is not an example. The 2018 water jet loom transfer is a good example and has a profound impact.

In the first half of 2018, because of the transformation of water jet looms in the first two years, the number of water jet looms in Jiangsu and Zhejiang provinces suddenly decreased, resulting in the supply of conventional products in short supply. The conventional "rotten cloth" profits of spring Asian spinning and polyester taffeta even surpassed the functional fabrics of four rounds and T400.

Such a high profit has given the textile people the illusion of a regular grey cloth. By the summer of 2018, a large number of water looms were put into operation in the outlying areas such as northern Jiangsu, Anhui and Hubei. By the end of 2018, this part of the production capacity has entered the market one after another. It is difficult for the whole market to suppress the overcapacity situation.

It is also this kind of overcapacity, which led to the "cold winter" of 2019, and also reduced the anti risk ability of textile enterprises in the face of the epidemic this year.

Editor's note: there is nothing new in the sun, even if there are lessons from failure, but when the so-called draught appears, there will still be countless people flocking in, even at the end, except for a few people who earn a lot of money, most of them are bleeding. Profit is the nature of human beings. It is not a bad thing to seize the draught, but before we do these things, we can not just rely on one hot blood.