Under the influence of the recent fluctuations in crude oil, the prices of various textile raw materials have inevitably increased. But this is also a pain for textile bosses, who find it difficult to accept the increase in raw material prices in an already dull market atmosphere. Raw materials are rising, but the price of gray fabrics is not rising, and profits are really slipping away. It is difficult to maintain capital or make a small profit!
The startup is stable, but the inventory is unstable!
It can be seen from the Shengze Index of the Ministry of Commerce that the delivery speed of gray cloth has improved slightly this week, so the inventory of gray cloth has dropped to about 35.1 days. But according to the past, either the market is very hot and continues to this period, so the inventory of gray fabrics is low, or the peak season has ended normally, so the gray fabrics are slowly rising. Either way, they have experienced a period of full demand, like Nowadays, when the demand is low and the inventory is too low, the textile bosses can be said to be crying without tears.
Mr. Qiu, who specializes in T800 and four-sided bombs, said: “We have 700,000 meters of blanks in stock, and the factory is currently operating at full capacity.”
Mr. Tang, who specializes in four-way stretch, double-layer, pongee and high-elasticity, said: “Currently, the machines in the factory are fully operational, mainly for domestic trade, and the inventory is now about 1.5 million meters.”
Decreased orders, difficult to operate under pressure
Although the domestic epidemic has finally improved significantly due to proper control, the impact of the epidemic cannot be dissipated immediately. In terms of logistics, there are still some areas under control. Now purchasing goods requires a place of delivery, a place of transit, and a place of collection. Only in non-controlled areas can you receive express delivery, otherwise it will be sent back, not to mention the various code checks at highway intersections, which not only affects time, but also increases transportation costs. In terms of terminal demand, it is precisely because of these reasons that customers’ desire to place orders has plummeted, and demand is still shrinking. Naturally, companies will receive fewer orders.
Mr. Shen, who specializes in pongee and Oxford fabrics, said: “The orders are not very good. There are no orders for this year! We also made last year. Affected by the epidemic, logistics has become troublesome!”
Mr. Qiu, who mainly sells T800, said: “Logistics control, logistics costs, costs have increased significantly. There are currently no orders, and there will be no excess orders in the future!”
Mr. Tang, who specializes in four-way stretch, double-layer, pongee, and high-elasticity, also said: “Accepting orders will definitely have an impact. The entire market demand has decreased, and our orders have naturally decreased. The situation of receiving and shipping goods is still there. OK, but orders are so-so at the moment.”
I don’t dare to replenish my inventory and I have to sell my goods!
Raw materials have surged in recent days, and textile workers have seen it and suffered in their hearts. It is a cliché that if the demand is high, some people will be able to afford it no matter how much you increase it. However, if the demand is not good, most people can only stay away from the empty increase except for those who just need to replenish their stocks. What should I do if the fabric made from high-priced raw materials cannot be sold? What if it falls and loses money in the future? Now that the raw materials are so high, customers have to lower the price when placing orders… To put it bluntly, I will lose all my pants. . Faced with today’s cost prices, some bosses are also relatively pessimistic about the market outlook.
Mr. Qiu, who specializes in T800 and four-sided elastics, said: “Raw materials fluctuate greatly, and when there is no hope for market orders, the price keeps rising and the inventory will not be replenished. Moreover, the prices of gray fabrics, can factory and fabrics have not changed.”
Mr. Tang, who specializes in four-way stretch, double-layer, pongee and high-elasticity, also said: “The raw materials have increased by 100, but the gray fabric has not increased, and customers are still lowering the price. Some gray fabrics and fabrics are falling because there is a lot of inventory, and some are being sold. goods.”
Generally speaking, textile people are not very optimistic about the future market. They either think it is average or bearish. However, some bosses have said that it mainly depends on the subsequent changes in the epidemic. If the epidemic is stable and the international situation slows down, everything will There is still something to ask for.
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