At the end of 2016, the rising price of raw materials was the hottest topic in the industry. On the other hand, the printing and dyeing industry, which is above the limelight, has attracted public attention. Whenever there is any disturbance, it will cause headlines on industry portals. All these issues, such as raw materials and dyeing fees, are pointed at the downstream weaving industry. From the cost pressure, it is difficult for the weaving industry to have good transmission for a while, causing various complaints from cloth bosses. Although the market is developing in a good direction, the industry has repeatedly warned of reasonable industry development. However, after the Spring Festival, the price increase caused by raw materials and auxiliary materials continues to be a storm, and the industry chaos caused by the price increase is beginning to ferment. Textile people still need to keep their eyes open, after all, prosperity is the way to go. Today, the author will take stock of the four major chaos in the chemical fiber weaving industry.
1. Raw materials have skyrocketed, and it is difficult to raise prices for fabrics;
Since the end of 2016, the price increase of raw materials has overwhelmed weaving companies. What is even more sad is that after the Spring Festival, another wave of price increases is about to begin. The market is also unanimously bullish on the market for chemical fiber raw materials, and it is likely to continue to rise throughout the year. Looking back at the fabric market, it is undeniable that the current situation of weaving enterprises is indeed improving compared with previous years. However, the increase in raw materials has not only failed to increase the price of gray fabrics simultaneously, but on the contrary, huge cost pressure has made enterprises struggling.
In addition, the gray fabric market after the Lantern Festival has gradually returned to normal or even higher than in previous years. At present, most weaving companies are taking orders from the year before, and their own inventories are gradually increasing, which makes them worried about the market outlook. It is not ruled out that there will be active sales in the market. Although the price has not dropped, the increase in volume has also attracted more traders to participate. This price increase process ultimately did not allow gray fabric companies to reach the selling price they wanted.
“Actually, the price increase was not our original intention. After all, my price increase may increase the risk of losing customers. However, raw materials are rising every day, and dyeing fees are also high. Our cost pressure is really too great,” said the boss of a company in Wujiang Mr. Chen said, “Take 228T nylon Taslan as an example. In May last year, our purchase price for gray fabric was 5.2 yuan. Now our purchase price is 6.1 yuan. This increase is nearly 1 yuan, but the quotation we give to customers But it’s impossible to increase that much, it’s only 50 cents at most, and you have to bear the rest of the cost increase yourself.”
2. The “funnel-type” structure of printing, dyeing and weaving production capacity is seriously unreasonable
The printing and dyeing industry is a key link in the deep processing of textile products. It used to be a bottleneck restricting the development of China’s textile industry. After more than 20 years of continuous development, printing and dyeing wastewater and exhaust gas have become an industry that has a great impact on China’s harsh environment, resulting in a decline in printing and dyeing production capacity. Shrink again and again.
Taking Shengze, an important textile cluster town, as an example. In 2016, the town’s weaving capacity was approximately 12 billion meters, while its matching printing and dyeing capacity was only 3 billion meters. The huge gap in production capacity makes the printing and dyeing industry occupy an absolute say in weaving. right.
In recent years, topics about rising dyeing fees and queues at the entrance of dyeing factories have become commonplace. Unilateral behaviors such as unexplained increases in printing and dyeing costs and quality issues have also made the weaving industry miserable. But now that raw materials are skyrocketing, the increase in dye costs has given weaving companies another boost!
3. The inventory is empty and the order is there, but whether it is accepted or not is a “pit”
Indeed, since October last year, the weaving market has experienced good conditions that have rarely been seen in recent years. While inventories have been cleared, most companies have also received orders for the year ahead. However, there is a problem with the production cycle of textile companies. Whether it is export or domestic sales, there is an unwritten rule. That is, the orders most companies receive this month often have to go through multiple links such as production, printing and dyeing. It takes many months to deliver fabric products to customers, and the price of order products is based on the current market price. Since last year, the variability in raw material prices in more than one month has been too huge. Nowadays, fabric companies It is already making meager profits under the pressure of cost. If the cost increases and the product price remains unchanged, it is conceivable that Boss Bu may have to trade at a loss. When the author visited the market recently, a cloth boss also joked that it seems that the inventory is empty, the orders are there, and the business is good, but in the volatile market, whether or not to accept it is a “pit”!
4. The money gained from clearing inventory has turned into machines. Will the upgrading of the enterprise change its own life?
There is a popular saying recently: “When the wind blows, it’s still the pig that falls to death!” The downturn in the textile market for many years has made practitioners gradually lose confidence and see no hope. However, the breeze of the textile market came out of nowhere. The inventory was emptied and the goods were urgently delivered… Many cloth bosses began to lament that they finally got over it. Under blindly optimistic expectations, many fabric boss friends around me have begun to purchase machines or upgrade machines. On the one hand, the improved market has given the company a sweet spot, and on the other hand, the weaving boss’s updated machines have indeed shown that the fabrics produced by themselves have been It does not meet the buyer’s requirements for fabric quality, feel, and style, and is not recognized by the market.They can only be eliminated and have to spend a lot of money to introduce new machines. Of course, I also hope that the industry boom will really come, but I would like to remind you that under the premise that the industry prospects are not very clear, the money exchanged for clearing inventory has turned into machines, or the production of a marketable product. This approach is not advisable. Be careful that the upgrading of enterprise machines will put the enterprise in trouble due to changes in market conditions or products. Please think about the imitation silk back then.
In general, with the skyrocketing prices of raw materials and auxiliary materials and the difficulty in rising the price of gray fabrics, the author tends to be cautiously optimistic about the future market. However, no matter whether it is skyrocketing or plummeting, there are only so many bitter fruits of raw materials, and someone always needs to swallow them. . I still hope that the textile market can blossom and bear fruit in a reasonable atmosphere, and cherish it!
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