“Suddenly, a spring breeze comes overnight, and thousands of pear trees bloom.” After the Lantern Festival, the cotton spinning market has officially entered the new year, and all textile companies are on track to start operations. Due to the recent price increase of raw materials, the downstream industry has entered into an embarrassing situation of “dilemma”.
At present, the cotton market price is strong. In some areas of Xinjiang, the pick-up price of double 29-grade hand-picking stations is as high as 16,300 yuan/ton. The price of machine-picked cotton 3128 is above 15,600 yuan/ton. The factory price of grade 3128 in Shandong is 16,200 yuan. / ton, the rise in raw material prices will definitely drive downstream. It is understood that the price of pure cotton yarn market is also high now. Some cotton yarn companies are still producing and shipping orders before the year. The overall yarn mill operation is relatively high. A company in Henan, C32S The knitting price is quoted at 23,800 yuan/ton.
The consequences of “willful” price increases in the upstream will obviously have to be borne by the downstream textile companies. So, will the companies that produce cotton fabrics have a good time this year?
Weaving enterprise: If the price increases, no one will buy it. If the price does not increase, I will lose money!
For weaving companies that produce cotton fabrics, the price increase of raw materials is the most critical factor affecting profits. Recently, the editor interviewed Mr. Dai of Wujiang Dalong Textile. He said: Due to the improvement in market conditions at the end of last year, before the Spring Festival After intensifying production orders, we did not stock up on raw materials in large quantities. However, we experienced such a wave of price increases around the Spring Festival. Now the problem arises. The orders signed years ago have not yet been completed, but the price of cotton yarn is no longer the previous price. Yes, if we produce according to the originally set price, we will definitely lose money, but if the price increases, customers will not buy it! As a result, we are again caught in the “dilemma” situation of protecting customers or protecting profits.
“In addition to raw materials, the wages of workers in the factory have also increased this year. If they don’t increase, it won’t work, and we won’t be able to retain people!” Mr. Dai said helplessly. For weaving manufacturers, skilled workers are indispensable. In today’s market Competition is becoming increasingly fierce, and equipment is also an inevitable cost. In order to improve the quality of cotton cloth, Dalong Textile replaced 192 machines this year. As a result, the cost has increased again. Under the pressure of such high costs, Mr. Dai said: “At present, the price of our company’s cotton cloth has increased by 0.5-0.6 yuan/meter, but even so, the profit is still minimal.”
Are life really so difficult downstream? The editor continued to visit Wujiang Zhonglian Warp Knitting Textile Co., Ltd. Mr. Xu said: “The polyester-cotton fabric produced by our company has increased by about 0.2 yuan/meter. Since 2017, the orders have been good. For the orders signed a year ago, , we all work according to the contract price. Fortunately, we stocked up some raw materials before, so it has not had much impact so far. The price of cotton cloth should continue to rise in the future.” It seems that in today’s market, which is mainly about rising prices, In the cotton spinning market, it is still necessary to stock up appropriately, otherwise you may wake up and the price has risen again…
Trading Enterprises: One price per day, no one dares to stock up on goods!
If weaving companies are most concerned about the rise and fall of upstream raw materials, then trading companies are most concerned about the price of gray fabrics. Now that the price of gray fabrics has also increased, how are trading companies doing?
“At the beginning of this year, the price of cotton gray fabrics has already increased four times. So far, the increase has reached about 1 yuan. The price is one per day. It is really hard to stock up on goods!” said the person in charge of Wujiang Kaixing Textile , the current price of cotton yarn has increased so much that the gray fabric produced by the weaving factory can only follow the increase. However, the customers who have signed the contract before will not accept the sudden price increase. As a result, the profit of our finished products can only be said to be The profit is small, “It’s really difficult to make orders now, so our company switched to spot goods.”
It can be seen that both raw material prices and worker wages have become cost pressures for downstream textile companies. Judging from a visit to the cotton cloth market after the Spring Festival this year, although the number of orders in 2017 was better than the same period last year, the profit margins are getting smaller and smaller. Well, if the main tone of the cotton spinning market in 2017 is – rising, the editor still hopes that all price increases will be rational. To borrow the words of an industry leader: Don’t blindly follow the trend, don’t bet, you will win!
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