“A customer placed a foreign trade re-order for 2020 two days ago, but the price was still the same as before, but the price difference was more than one yuan. In the end, the customer only agreed to add 0.5 to 0.6 yuan! All of a sudden, the profit disappeared. ” said a textile boss in Shengze area.
Two years ago, at the very beginning of the COVID-19 epidemic, the weaving market almost came to a standstill. Under the pressure of high inventory, the price of polyester filament dropped sharply, and the price of raw materials was at a historical low. Taking FDY150D as an example, the price in the same period last year was only 5,100 yuan/ton, while This year the price is as high as 8,350 yuan/ton, nearly double the gap, but if you want to buy it at the same price, the textile boss can’t help but sigh: “It’s just a dream!”
It was impossible to buy high-cost gray fabric at a low price. After both parties compromised, they finally took a step back, and the textile boss could only agree with tears in order to keep the factory’s looms running.
I’m not used to low prices!
When the epidemic first broke out, the market was closed, and it was impossible to get in or get out. Demand dropped sharply. In addition, the market has had the old problem of overcapacity in recent years, resulting in those warehouses holding millions or even tens of millions of meters of inventory. The textile boss didn’t know what to do for a while, and because of this, the “bad habit” of low prices has quietly become a routine operation in the current textile market.
If you use low prices to compete for orders, what you sell is cloth and what you get back is a loss. Today’s market prices are only lower, not the lowest. Most buyers will not give up until you lose money. And the textile bosses tearfully accepted some orders at a slight loss in order to keep the factory machines running normally. After all, they think that as long as Customers are not afraid of not having orders in the future.
The market was also affected by the epidemic in the past few years, but orders in March can still be placed as scheduled. Now that the three-month period is not prosperous, textile bosses are even more worried about orders for the fourth year. If the demand does not increase, can all weavers start from the cost side? To obtain low profits, traders are like “lambs to be slaughtered”. As long as the price is a cent higher than the market, they may not receive orders.
Therefore, the long-standing problems in the low-price textile market in recent times will be difficult to solve in a short time according to the current market situation. Unless Yinsi can place a large number of orders, if the supply exceeds demand, perhaps the price will be decided by the textile bosses. .
Taking orders is also a good thing, the demand still exists
According to the current market situation, although some textile bosses say that the market is bleak and gold is not enough, it has not yet reached the point where the market has stopped and there are no orders to weave. In fact, the main problem in the market now is low prices, resulting in orders but no profits. .
Many fabrics have been selling well since the beginning of this year, but the prices of conventional fabrics have never been able to rise. This is also because of the large volume of the wholesale market, and the prices have been kept very low. The market prices of some fabrics have already been lower than the cost price. There are textile bosses who are selling, but the main reason is that there is too much inventory. It is better to convert the inventory into money to produce some hot-selling products. The inventory will never be as popular as fresh blanks, and it will become less and less valuable as it is stored for a long time.
Obviously, there is still market demand. Although the epidemic in various places has hindered the normal operation of the textile market, this is only temporary. As long as the epidemic eases, orders will naturally be placed one after another. Summer will be here soon. After all, you have to buy some new clothes, and the popularity of spring and summer fabrics will also increase. Even if there is no gold three or silver four, there will definitely be red May. You still need to give the market some time. Don’t be disappointed by it until the end. Maybe It is not a busy season now, and it may be a slow season in the off-season too.
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