Textile Enterprises: Low Orders And High Inventory Enterprises Are Struggling

Recently, many textile mills have been affected by the epidemic situation, and many textile mills have been greatly affected by the epidemic situation. With the advent of the flood season, the number of enterprises that stop production and have holidays has increased significantly.

On July 15, the person in charge of a textile factory in Dezhou, Shandong Province, introduced that the factory mainly produces medium and low count yarn, which has not received orders for more than 10 days, and the product inventory has increased to 21 days. If the situation of the enterprise is not improved, the situation can only be improved. In order to reduce inventory, return funds, nearly two days the enterprise again cut part of the yarn price. For example, on the 15th, the price of comber 32S was 18400 yuan / ton, while that of combing 40s was 21000 yuan / ton, down 200 yuan / ton compared with July 10.

Some blended yarn enterprises are more affected. On May 15, the head of a factory in Gaoyang, Hebei Province, said that since May this year, pure polyester yarn has fallen by nearly 2000 yuan / ton, and the enterprise has been overwhelmed. On that day, the quoted price of pure polyester yarn t32s was 9500 yuan / ton.

Few orders and high inventory have become a common phenomenon in most enterprises.

In addition, affected by the raw material market and epidemic factors, textile enterprises generally hold a pessimistic attitude towards the future market. Short term range, low price of cotton futures, difficult to support. Second, since July, the market of polyester staple fiber has continued to decline, with a total of more than 300 yuan / ton in the past half month, and the downward fluctuation trend has not changed. In particular, the growth of cotton in Xinjiang is better, and it is expected that the possibility of cotton price breakthrough upward in the future is still low.
Since the middle of July, the operating rate of spinning mills has dropped to about 60%, and some enterprises have even gone bankrupt due to fake production stoppage.