Under The Hot And Cold Environment, Textile Enterprises Will Usher In The Two Production And Holiday Measures.

Since the start of environmental protection campaign in 2017, the transfer of textile industry has become a rational choice for enterprises to realize transformation and upgrading and seek breakthroughs in development. Under the high pressure of environmental protection, there are a lot of looms in the central and western regions with low cost and abundant resources. But with the passage of time, how is the boss who has gone crazy for expansion in the past two years?  

Peripheral dividends are beginning to recede, and the cost is not much lower.
In the past two years, the boss who transferred the loom began to have a consensus: in fact, the cost of transferring is not much lower. Here are some of the views of cloth boss transferred to northern Jiangsu, Anhui and Henan.

"The rent is cheaper, but in fact, it is almost the same as the local ones, but the freight is not much cheaper." Transfer to Yancheng, Jiangsu

"The cost is almost the same as that of the local factories. The rent is cheaper, and the labor cost is more than 8000, and the environmental protection is also very strict." Transfer to Nantong area

"Compared with the local level, it is actually artificial, other rent, water and electricity, are good, environmental protection this year because of the epidemic situation is better than before." Transfer to Langxi, Anhui

"Rent is cheap, at 120 yuan / Ping, manual labor is almost the same as local or even more expensive, because we are arranging local management workers to guide production in the past, and water and electricity charges and taxes are basically unified nationwide." Transfer to Henan

In view of this, especially in terms of labor, some areas in the periphery have even exceeded the local level. Although the rent is relatively cheaper, the overall cost advantage is not obvious, and the transferred boss is also strict because of local targets, while the central and western regions basically have no index requirements. Therefore, in the first two years, some large enterprises are hundreds of machines. This laid a thunder for the blowout of fabric production in the next few years.

Millions of meters are stored as normal. Most enterprises in the outlying area are only half open.

"This year, the situation is really not optimistic. Our export orders have been reduced a lot, and the demand has been reduced. The machines are still being woven, and our stock has already reached 5-600 million meters. In addition, the price of raw materials has gone up recently, but the cloth price has not risen. It is equivalent to the production of low price grey cloth with high price raw materials. In fact, it is a loss. In this case, we choose to halve the 300 looms in Langxi, Anhui. Open 50%. Around the factory start-up rate is basically around 50%, a good point in 7-8. Transfer to Langxi, Anhui, a cloth boss said.
Coincidentally, a cloth boss who transferred the loom to the Henan area also revealed: "we have a lot of stocks, 7 or 8 million meters, and now the looms are only 50%. The grey cloth is basically sold at a loss. There are also some high priced raw materials that are not sold for sale. If they sell, they will lose 0.3-0.4 yuan / m."
In addition to Anhui and Henan, most of the looms were carried out in Northern Jiangsu, Hubei and Jiangxi. Most of the looms were loom looms, and they were also woven at the lowest end, such as polyester taffeta, spring Asian spinning and nylon spinning. This kind of grey cloth can reach more than 200 meters per day in a loom. According to incomplete statistics, the addition of new looms in several places such as northern Jiangsu, Jiangxi, Anhui and Hubei has already broken through 200 thousand units. We can imagine the capacity of the grey fabric in the field.
Beginning in the first half of 2019, polyester and taffeta, such as grey fabrics, have been in a state of over capacity. By April of this year, although taffeta and spring Asian spinning had replaced non-woven fabrics as protective clothing, the demand for polyester taffeta and spring Asia textile rose, but they could not digest so many stocks. Therefore, the grey fabric in the field is still in a serious imbalance between supply and demand.

Low price and large output of foreign grey cloth impact the local market.

"The price of the grey fabric of the peripheral looms is lower, like the 210T polyester taffeta in Northern Jiangsu Province, which can be less than 1 yuan, and our own production is about 1.2-1.3 yuan / meter according to the current raw material price. However, the quality of these grey fabrics is not as good as that of the local ones. Generally, these low-end products such as polyester taffeta and spring Asian spun are produced. Finally, most of these grey fabrics also flow into the local market, causing great impact on the local market. " Choi Chang, who owns more than 300 looms, said.
The surrounding grey cloth flows into the local market. Although the quality is not as good as the local ones, these grey fabrics belong to the market, and the customers do not have high quality requirements. With the temptation of low price, and the fabric is not a big problem, the price is low. The machine stopped, the rent, the depreciation of the machine, and the basic living expenses of the workers were all expenses. The boss was facing a dilemma.

Under the hot and cold environment, next will usher in the two production and holiday measures.

Today, raw materials have already gained a certain increase compared with the beginning of the month, but the price of cloth is still not moving. In addition, the recovery of foreign trade is not obvious. The domestic trade has gradually entered the off-season, resulting in the lack of orders. Even the epidemic prevention orders such as polyester taffeta, spring Asian spinning and conductive cloth have begun to come to an end. In the face of this situation, the cloth boss in the outlying area said that considering the comprehensive consideration, it might be possible to continue again. Cut production, or even stop it all!
"If the raw material falls, we will buy something to continue production. If it does not fall, we may have a holiday at the end of the month." The boss, who has a 50% boot rate, said. "Now this situation can only be sold at a low price, but we do not want to lose money all the time. We may have to reduce the number of machines, and more than 300 units will be reduced to more than 100 directly." Wang Chang, who moved to Henan, said.
As far as the current situation is concerned, it is possible to get orders after the epidemic only if we try to get through these days.