For the textile industry, 2018 and 2019 can be said to be unusual years, from the unprecedented strong demand and the high price of grey cloths produced by the ultra-low supply during the same period, and then the shrinking demand and the surge in supply made the entire textile industry difficult. situation. After the price of “roller coaster” in the grey cloth market, people can't help but ask: What happened to the industry?

Looking back at the National Day holiday just past, what happened in the market?

Reduce production and holiday become "high-frequency words"!

Regarding the National Day holiday, Xiao Bian did a market research. As a result, the National Day holidays took up most of the enterprises. Some manufacturers even put up the “National Day Seven Days”, and in the past years, this phenomenon is rare and few, most textiles. Manufacturers will only put 1-3 days of holidays, and some orders are more busy companies do not even have a holiday.

"In the past years, we put a maximum of one day off for workers on National Day, or one day off, but this year we chose to put it for three days. On the one hand, workers can feel the happiness of the celebration, and on the other hand, it can alleviate the inventory pressure." Wang Zong, owner of a weaving factory in the region, said.

From the current market operating rate, Shengze, Changxing water jet loom maintained at 8-9 percent, Haining warp knitting machine at about 70%, Xiao Shao round machine is low, about 6-7 percent, production enthusiasm is not as good as last year .

It can be seen that in the face of fluctuations in this year's market, most textile mills have chosen “safe” production. The so-called safety, in addition to production safety, is mainly for the safety of inventory and the safety of operation, so even in the stage. In the peak season of demand, textile bosses are still happy to "cut production, holiday"!

Change production, technology changed to "survival"!

In the third quarter, the demand for autumn and winter apparel fabrics began to improve. The winter-wearing fabrics such as polyester taffeta, nylon silk, and pongee, which were supposed to be popular in the season, have improved, but the transaction volume is far less than that of the same period last year. Less textile mills barely managed to balance production and sales, and the process of destocking was far less than expected. Therefore, many weaving manufacturers have begun to change production or technical transformation.

Yang Zong, a manufacturer of tooling fabrics in Shengze District, said: "At present, our family's regular product inventory is about 500,000-600,000 meters, almost 2 months. This inventory has not been so high in recent years, and we specialize. The order for fabrics was not urgent, and the production capacity could not keep up. Therefore, I decided to use the National Day holiday to carry out technical reforms. Of course, technical transformation requires investment of funds, facing the input cost of 50,000 yuan/machine weaving machine, Yang Zong Think it is worth it.

Not only that, in the second half of this year, the elastic fabrics headed by T400 and T800 in the market also smashed their own blood. Therefore, many manufacturers who originally produced conventional products shot the two fabrics and purchased raw materials, which will produce the original stock. The goods machine turned to produce these marketable goods in order to lower the growth rate of their own inventory. Borrowing the words of a silk boss Wang Zong: "In order to survive, we must change and remove excess capacity!"

A piece of cake cut 60%, leaving 40%, how to divide?

Whether it is a holiday or a change of production, in fact, the original intention of the cloth bosses is the same, that is, to reduce their own inventory and ease the pressure of overcapacity. In the words of a boss, today a piece of cake cuts 60%, the remaining 40%, popular Darwinism, natural selection, survival of the fittest!

In the early stage, I asked two bosses who were foreign traders. They all agreed that the trade war this year had a great impact on them, and the orders fell very badly. 50% and 70% are their declines in US orders, for them, maybe this cake is really running out! Fortunately, in the past two years, they have already begun to put "eggs in other baskets". Although orders from the United States are decreasing, orders from Bangladesh and Russia are still developing steadily.

In Xiaobian's view, there are currently four challenges in the textile industry: First, market volatility is too frequent, which is not conducive to the continuation of orders between enterprises; second, the long-standing "crisis" of the market, the payment method of arrears of goods, resulting in The cash flow of the grey cloth manufacturers is under pressure; the third is the confusing foreign trade environment, which causes the order to be transferred or cancelled; Fourthly, the improvement of the safety supervision and environmental protection requirements also puts higher requirements on the textile manufacturers.

Silent smoke spreads in the market, and business opportunities must be hidden in the crisis. Therefore, in the face of complex international and domestic situations, textile enterprises can only stand by their own characteristics, find their own positioning, and constantly adjust the structure, in order to stand up in this "war"!

Hai'an County Qinfeng Chemical Fiber Co., Ltd. is a company specializing in the production, research and development and sales of polypropylene staple fiber, polyester staple fiber, Functional polypropylene staple fiber and PP staple fiber. It is based on innovation and sets a good example for the industry. Its main specifications are 1.5D to 200D and the length is 5-150mm. The products are available in a wide range of colors and support color to map or sample customization. Qinfeng will always adhere to the business philosophy of “pursuing excellence and creating brilliance”. We sincerely look forward to your call!