Starting From June, Raw Material Price Increases, Dilution And Weaving Profits.

A few days ago, after many years of thinking, a textile boss, who had been in operation for many years, eventually sold dozens of looms and indicators on hand. Having no intention of selling many years of hard work, there must be great difficulties.

The boss confided: "I have worked in this industry for more than ten years. From the previous work as a maintenance worker to buying dozens of looms and renting a small workshop to make a large factory to do the processing, I can earn a little money a year, but this year the list is obviously less. From raw materials to workers to taxes and fees, every link costs a lot. Think about it, sell the machine and go home and play with grandchildren!"

As we all know, textile enterprises produce "big profits and small profits", if any link is in a state, it is easy to erase profits. According to the National Bureau of statistics, the total profit of manufacturing industry reached 1 trillion and 951 billion 940 million yuan in 1-5 months, down 4.1%. In 1-5, the total profit of textile industry above scale reached 39 billion 110 million yuan, an increase of 3.2%. Over 30 billion 790 million of the total profits of textile, clothing and apparel industry have dropped by 1.3%.

Interest is the motive force of human action, and the reason why the market participants are in a bad mood recently is also true. This year, the cost continues to rise, making weaving enterprises undergo a severe test. Once an enterprise is careless, it is likely to be faced with the consequences of losing money and losing blood. Recently, cloth owners are experiencing this trouble.

01

666, the raw material goes down V.

Starting from June, the price of raw materials has increased, making the silk weaving market constantly in turmoil. In Jiangsu and Zhejiang provinces, more chamber of Commerce called on enterprises to reduce production and raise prices appropriately. Many textile personages have also sent news of price increase in their friends circle.

By mid July, the raw material market of the original haste has returned to calm. PTA from the daily limit to the limit, the polyester manufacturers reported 1-2 of the sluggish production and marketing in succession, and the trend of "V" was also rushed.

The raw material has gone up sharply, leaving behind the chicken feather, leaving to the weaving factory is the cost rise, the profit flaw.

According to a textile personage, "terminal demand has not improved, the industry is overcapacity, and many peripheral production capacity is slowly coming up. In the off season of the imbalance between supply and demand, raw materials have skyrocketed so that little profit has been compressed again. Though polyester filament begins to fall in price this week, it will not fall back to the previous price in the short term. "

02

How much is left after the profits are as thin as paper and eaten by raw materials?

Although some manufacturers recently made the price of grey cloth up by 0.05-0.10 yuan / m, the actual turnover has changed little. In this age of lack of money, most manufacturers chose to eat their own cost to maintain a harmonious relationship with their customers. This also led to the continued dilution of the profits that remained little.

"No profit, only to support the factory!" A textile mill owner in Wujiang said, "if there is a good market, it will be confused by the rise of raw materials." Indeed, the wave of raw materials in the off-season has become the latest criticism of many textile bosses.

According to past practice, the raw material FDY rises 1000 yuan, the price of grey cloth rises by 0.10 yuan / meter at the same time to be flat. Some of the higher weight Oxford cloth, suede and so on should rise at 0.30-0.40 yuan per meter, but the fact is that under the current market situation, weaving factories have not followed up, most of the manufacturers are still paying the price, and the profit dilution has become a certainty.

03

Changxin, Haining and other places are also not optimistic about the profits.

Besides, in addition to the Wujiang area, the profit situation in Changxin and Haining is also not optimistic. In the Changxin area, it was mainly made of wool cloth, mainly exported to Nantong and other places. In June, when the raw material rose, most of the owners distributed raw materials and grey cloth to store goods. Although they thought they had bought low priced goods in the year, their actual profits were obviously diluted.

According to a market person, in general, POY rose by 2000 yuan / ton, and the amount of cotton cloth to be increased by 0.50-0.60 yuan / meter can be leveled. Now the market has risen by only 0.05-0.10 yuan / meter. "At present, the atmosphere in the off-season market is quite obvious. Before being driven by raw materials, the market has gone through a wave of goods, and this week has begun to be dull. Now the profit is too low, but it will not work if it is not accepted. Business is hard to do." Sun Zong, a trader in Changxin area, said.

In addition, according to Wen Haining's warp knitting market, the recent off-season atmosphere is more obvious, the market operating rate has dropped to 5-6, and there are not many new orders. Due to the over 2017-2018 years of expansion in the industry, the overcapacity of the market is obvious. "Now we just want to spend our summer vacation and wait for the 8-11 peak season." Haining one warp knitting factory official said.

In fact, recently, cloth owners reflect common problems, mainly from the pressure of cost side. At present, enterprises are facing more pressure on raw materials, electricity, labor and financial interest. In terms of employment, recruitment difficulties and expensive employment are also more common. Some powerful enterprises reduce labor and reduce labor intensity by replacing new equipment and upgrading technology, but the market as a whole still faces greater internal and external pressures.

But confidence is more important than gold. Most of the cloth owners complain about the current market, but they are willing to stick to it, because the sun is always suppressed after the wind and rain, so the order will be "golden nine silver ten".