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"I have heard that some factories in the outside have stopped buying too much! The recruitment is difficult, the rent is cheap, and the inventory is too much. The boss will not open, and I am ready to sell the stock slowly!" said a textile partner and Xiaobian.

The digestive conversion of stocks has become the key to the textile market this year. In fact, inventory has become a sword of Damocles hanging over the textile companies, and the sword of the peripheral manufacturers is even heavier.

The cloth boss counted the account: stop production and save money!

It is time to greet the shipping season, but it has staged a production stoppage. What is this? The friend gave the Xiaobian an account:

Take the textile factory of 100 looms as an example:

In terms of rent, the rent of the factory outside is now 60-70 yuan / year / square, 100 machines need 2000 square meters of factory rent is also 12-14 million yuan;

In terms of wages, skilled workers are 9,000 yuan/month, new workers are 5,000-6,000 yuan/month, and local workers are not easy to find, and the technical level is not enough; in general, 30-40 workers are needed in the factory, then the salary cost is 1 month. At least 300,000 yuan;

Coupled with other costs such as raw materials, water and electricity, financial management, etc., the cost of weaving for one day is about 40,000 yuan, and the rent for one year is 140,000.

In terms of inventory, it is reported that many factories in the field are currently in stock for more than two months, some even in more than three months, the inventory pressure is quite large, and the capital is also quite large. If the price of the 190T polyester taffeta is 1 yuan/meter. In order to convert, the inventory has taken up more than 2 million funds.

Therefore, for some cloth bosses, instead of producing inventory every day, it is better to stop the machine, sell the inventory, and withdraw the funds. This way, the production is not lost, and it saves money!

It should be the shipping season, but it will stop the tide!

Since 2018, many of the plant construction projects in the field have come to an end, a large number of new machines have been launched, and the market capacity has entered a stage of rapid increase. Therefore, in 2019, the production capacity of conventional chemical fiber fabrics entered the era of “blowout”, and the “blue sea” brought by environmental protection was converted into “red sea”. The market was once dragged down by “overcapacity”.

It can be seen from the sample data of China Silk Network that into the late March, Shengze area has entered the stage of tired inventory. After entering June, although the market has destocking operations, each time the results are very small, the current market inventory Still in the high position of about 39 days.

Inventories are at a high level in the year, and the difficulty in destocking has become a "common problem" for weaving manufacturers, which has led to the unsatisfactory days of weaving manufacturers in September. Although the market is currently in a seasonally alternating season, the terminal just needs to rise, but under the imbalance of supply and demand, it is difficult to turn off the high inventory status.

The more the number of machines, the larger the inventory base, the more funds are used, and the companies that build factories on the periphery are generally hundreds of thousands of machines, so for them, in such a turbulent environment, the production is reduced. It is not surprising to stop production, it is only a matter of time.

The market is only half a month old, is it over?

In fact, at the end of August, most of the weaving manufacturers' grey cloths performed better, far higher than the “plain” market in early August.

In addition to conventional fabrics such as T400, other fabrics have begun to take good sounds: 300T Chunyao has shipped a car! 228T polyester taslon order received 20,000 meters! Korean customers place orders, ship to Vietnam, and go to the car with a daring cloth...

The good news of the goods in the circle of friends has come frequently, and the weaving manufacturers have finally ushered in the state of stock reduction. After only a short half-month, the market voice began to turn a little. During the visit, many weaving manufacturers indicated that the speed of goods in the near future was slowing down, and the production and sales in the factory began to be out of balance.

"At the end of August, the market was better. Now it is not good, and the inventory in the factory has started to increase!" said Chen Zong, a chief battalist in the Wujiang area.

Of course, more companies said that there is no order at the moment, but a low-priced order, or whether the transaction price can be accepted, accepting an order, and accepting others can only do it.

For example, last year's silk fabric profit of the silk can be 0.20-0.30 yuan / m, this year has dropped to 0.05-0.08 yuan / m, "the current list is not only low prices, guests also require the grey cloth arrears time is also longer, the profit is very low "Yang, a trader who makes silk on the market, said.

The autumn quick list and the winter period are coming to an end. The market is beginning to prepare for the winter fast anti-order and the spring and summer next year. The current domestic market is still better than the foreign trade market. In terms of foreign trade, the impact of tariffs on the domestic textile and apparel industry chain is still relatively large. Some orders from China have been transferred to foreign countries. For example, Vietnam’s garment factories and fabric factories have basically placed orders for more than three months, while domestic fabrics are foreign trade. Order growth is relatively slow.

In general, terminal demand still exists, but market consumption is changing, and whether the product meets the downstream appetite determines whether your market is over! It is wise for textile owners to maintain a relatively healthy level of cash flow this year.

Taixing Hongyang New Material Technology Co., Ltd. is a professional manufacturer of polypropylene high-strength yarn, polypropylene air-changing yarn, webbing and polyester air-changing yarn. The company has excellent equipment, advanced technology, complete testing means and stable product quality. Consistently adhere to the "guarantee quality, satisfied customers, quality service, adhere to the contract" purpose, with high-quality products, good reputation, selling the country. Dedicated to win-win cooperation with domestic and foreign businesses, and common development!