High Inventory Of Grey Cloth, Reduction Of Production Or Technical Transformation In Textile Mills

For the textile industry, 2018 and 2019 can be regarded as an unusual year. From the strong demand of the past and the continuous high price of the grey cloth made by the ultra-low supply during the same period, the textile industry has been in a difficult position after the demand reduction and supply surge. After the roller coaster market experienced the price change of roller coaster, people could not help asking: what's wrong with the industry?

Looking back at the recent National Day holiday, what has happened in the market?

Production and vacation become "high frequency words"!

In regard to the National Day holiday, Xiaobian made a market research. As a result, most enterprises took part in the National Day holiday. Some manufacturers even put up "seven days of National Day happiness". In previous years, this phenomenon was rare. Most textile manufacturers only put 1-3 days off, and some of the busy companies did not even have a holiday.

"In previous years, we spend 1 days on the national day, or 1 days off, but this year we choose 3 days. On the one hand, the workers can feel the joy of celebrating the festival, and on the other hand, they can relieve the pressure on the stock market." Wujiang area a weaving factory owner Wang said.

From the current market start-up rate, Shengze and Changxin water looms are maintained at 8-9, 7 of Haining warp knitting machines, and Shaw less than 6-7, and production enthusiasm is not as good as that of last year.

It can be seen that in the face of this year's market fluctuations, most textile mills have chosen "safe" production. The so-called safety, besides the safety of production, is mainly about the safety of stock and the safety of operation. Therefore, even in the stage of high demand season, textile bosses are happy to "reduce production and take a holiday".

Change production and technological transformation for "survival"!

In the third quarter, the demand for clothing materials in the autumn and winter began to improve. The cold proof clothing such as polyester taffeta, nylon spinning and spring Asian spinning, which should be sold well in the season, should be improved. But the turnover is much lower than that of the same period last year. Therefore, many weaving factories began to switch production or technical transformation.

"At present, our regular product inventory is about 50-60 million meters, almost 2 months," he said. "This inventory has not been so high in recent years, and our special fabric orders are not urgent, and the capacity is not up to date. I decided to make use of the National Day holiday to carry out technical transformation." Of course, technological transformation requires capital investment, facing the cost of 50 thousand yuan / loom, Yang always thinks it's worth it.

Not only that, but in the second half of this year, the elastic fabrics, led by T400 and T800, were also killing themselves in the second half of this year. Therefore, many manufacturers that made conventional products have sold these two fabrics, and have purchased raw materials, and turned the machines which are produced by the original warehouse to produce these marketable goods, so as to lower the growth rate of their own stocks. In order to survive, we need to change the excess capacity and get rid of the excess capacity.

A piece of cake cut 60%, leaving 40%, how to divide?

Whether it's a holiday or a change in production, the boss's intentions are consistent, that is, to reduce their inventory and ease the pressure of overcapacity. In the words of a boss, today, a piece of cake is cut off 60%, and the remaining 40% are popular Darwinism, natural selection and survival of the fittest.

Earlier asked 2 foreign trade bosses, they invariably said that this year's trade war had a great impact on them, and orders fell sharply. 50% and 70% are their declining orders for us orders. For them, maybe this cake is really very few. But fortunately, in the past two years, they have started putting eggs into other baskets. Although orders in the US are decreasing, orders in Bangladesh and Russia still show steady development trend.

In the view of Xiaobian, there are four challenges in the textile industry at present: first, the market fluctuation is too frequent, which is not conducive to the continuation of orders among enterprises; two, the long-standing "criticism" of the market, the payment method of arrears, which leads to the cash flow pressure of the gray fabric manufacturers; three, the foreign trade environment is confusing, causing the order to be transferred or canceled; four, the promotion of safety supervision and environmental protection requirements also put forward higher requirements for textile manufacturers.

Silent smoke spreads in the market, and there will be business opportunities in the crisis. Therefore, in the face of complex international and domestic situations, textile enterprises can only find their own position and adjust their structure through their own characteristics so as to stand firm in this war.