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High Price Of Conventional Fabrics Hit Kim Gu's High Season

2019/9/10 17:46:00 4

Conventional FabricsHigh Season Prices

Business is not busy this year. There are not many bosses and the most time. On that day, cloth boss A decided to drink with her boss B and cloth boss C. The recent life is a bit lively. Young people get together to talk about the men's basketball team, and the elderly chat about pork prices.

Half of the drinks, boss A was unhappy: "this year's market is really bad, Ming Ming Kim Gu arrived, but I also closed the 1/3 machine, before the proof of the list did not come down, it is said that the reason for excess capacity, I think Sino US trade is the biggest reason."

Cloth boss B disagreed: "the market is not good, of course, is the reason for excess capacity, so many people go to North Jiangsu machine, the goods are more than once, and can not be sold, there are several million meters of billet shop manufacturers everywhere, the market can still get better."

Cloth boss C also retorted: "bad market is clearly the product's own problems, people do T400, T800 manufacturers shipped out of time, but you see me do polyester taffeta, spring Asian spinning and other conventional varieties, are losing money earned cry!"

What the bosses say seems to be reasonable. This year, the textile market can really be described as "gloomy". The inventory of textile enterprises is high, and the inventory of millions of meters is normal. It is not surprising that grey cloth is piled up to the door.

"Kim Gu" has come, so what is the market situation now?

01

Reduce negative 1/3, high inventory "extinguish" open factory "hot"!

We have always attributed the bad market to overcapacity. Last year, the market was good enough to let many textile bosses expand blindly outside, resulting in the blowout of the capacity this year, the spot market expansion, production and marketing difficult. Many cloth bosses lost confidence in the off-season, and now they have finally entered the expected "Kim Gu", but the market does not seem to have changed much.

According to the sample enterprises in China's silk net monitoring, until the middle of 8 months, the fabric inventory of the weaving factories was loosened. On the one hand, due to the good expectation of "Kim Gu", on the one hand, the fabric of autumn and winter began to arrive, but the conventional varieties still did not run smoothly. The fabric inventory of the weaving factories in Shengze remained at 40 days, and did not improve at the end of August.

The market is constantly in the "face" expected under the "Kim Gu". Recently, there are still weaving manufacturers said, "now the market is hard to reverse, the machine in the factory is still closed 1/3, millions of meters of inventory is also difficult to consume. But the machine can no longer stop, can only continue to do inventory, but the list is gone, see the stock is accumulating higher, but there is no way. You can't always throw it away. Even if you throw it, someone has to. " At the beginning of Kim Gu, he heard such a voice and felt sad in his heart.

The manufacturers in Northern Jiangsu are also doomed to escape from bad luck, and there is also a reflection from the weaving manufacturers. Some manufacturers also want to close, but because the workers are constantly making trouble, they have to barely maintain their operation. In fact, the enterprise has been "devastated".

02

The advantages of high value-added products become more and more obvious, and gradually occupy the market share.

In the market, the phenomenon of selling has not improved because of the arrival of the traditional peak season. The most common stocks in the market are the conventional varieties, and the most difficult ones are the regular varieties.

"Nylon 5.8?"

"No!"

"5.5?"

"No!"

"5 pieces?"

"4.9, the loan amount is 2 months."

"OK."

"

You see, regular varieties are so unpopular this year.

With the saturation of conventional varieties, high value-added products began to "become popular". In recent years, "net red product" T800 was favored by many customers because of its superior price, superior quality and more cater to market demand than T400.

In the survey, cloth boss told Xiaobian, "this year's paper sticking is very hot. We have done it since June, and some compound factories do it all night."

It is reported that the release paper is a kind of finishing film. The bottom cloth is low elastic nylon and low elastic spring sub spinning. After finishing, it is coated with a layer of release paper, similar to the coating, but the release paper is only covered on the surface. The fabric of the release paper is mostly used for the down garment.

The boss said that this year's release from the type paper is very hot, but this fabric is shipped very slowly and the price is high. The price of 380T wrinkle and low elastic release paper is about 12.7 yuan / meter. Recently, the company began to make the knitting compound release paper, the finished product price was around 17 yuan / meter, the profit was also good, and the finished product had a profit of about 30%. Although expensive, but the market demand is good, recently has received more than 10 thousand meters of orders.



It can be seen that when the conventional varieties are "unable to move", the high value-added products begin to highlight their advantages. The key is whether the products have bright spots, whether they are innovative or not, and whether they cater to the market demand.

03

Trade between China and the United States is volatile, with total trade value falling by 9%.

According to the latest news from China Customs, the total trade volume between China and the United States was 2 trillion and 420 billion yuan in the first 8 months of this year, a decrease of 9%, accounting for 12% of the total value of our foreign trade. Among them, exports to the United States amounted to 1 trillion and 880 billion yuan, down by 3.7%; imports from the United States decreased by 545 billion 10 million, and the trade surplus with the United States increased by 1 trillion and 330 billion yuan, an increase of 7.7%.

The trade friction between China and the United States has had a certain impact on China's foreign trade in the past year, especially since the Sino US tariffs in September 1st.

Prior to the mutual tariff, we also investigated the impact of Sino US trade issues on the market. Some companies said that the United States List had not been properly negotiated due to the fact that the tariff sharing problem had not been properly negotiated. However, more enterprises did not have much influence. On the one hand, they exported less to the United States. On the other hand, the comparative tariff did not really implement, and there was room for reversal.

Recently, bosses have been more and more responsive to the problems arising from the escalation of trade between China and the United States. A company disclosed that their company had export business to the United States. According to past experience, it was ready for shipment at this time, but this year's list has not been released yet. Demand is not strong. On the one hand, tariff increase is the biggest reason. If the cost is high, the other party will be hesitant. Maybe this year it will be small. Maybe they are directly from other countries.

Another weaving manufacturer also said that the amount of gray cloth orders of the senior traders was much lower recently, mainly because the list in the United States was less, which led to their inventory digestion even more slowly this year, and the machine could not stop.

In September 5th, good news came from Sino US trade. The two sides agreed to hold the thirteenth round of high-level consultation on Sino US trade and economic cooperation in Washington at the beginning of October, after which the two sides will maintain close communication. It can be seen that Sino US trade is still uncertain, which has caused some difficulties to the issuance of foreign trade documents.

END

No avalanche of snow was innocent during avalanche. Although there are many reasons for the current downturn, Xiaobian is more inclined to overcapacity. Although the current situation of high value-added products has been very good, Sino US trade has also caused some problems, but "clothing" is just needed. If the market is not so saturated, there will be fewer people who have cake, and there will always be a list of them. It will not be so dense this year that the majority of textile people will be out of breath.



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