In the past ten days or so, the textile market has experienced limited production suspensions. All processing plants such as weaving, printing and dyeing, and finishing have seriously insufficient production capacity. What impact has it had on the market? Gray fabric inventory fell rapidly
Under the influence of “dual control”, the operating rate of downstream weaving enterprises dropped significantly, and the overall operating situation was weak. After the Mid-Autumn Festival, the scope of influence of dual control expanded, and the operating rate was seriously insufficient, falling to 15%. However, policies were gradually relaxed at the end of the month, and the operating rate of some areas rebounded, with the weaving operating rate in Shengze rising to around 45%. In peripheral areas, there are also production restrictions, and most of them limit production by 20%-30%.
The biggest impact under the limited production suspension policy is the gray fabric inventory of weaving manufacturers. Although the production limit has brought some unnecessary losses to most weaving manufacturers, what are these losses compared to the successful destocking? Reducing inventories and withdrawing funds is the way to go.
Recently, due to a slight rebound in market shipments and a serious decline in production capacity, as of the survey, the overall inventory of gray fabrics by water-jet and air-jet manufacturers in Shengze has dropped to about 33.5 days.
Grey fabric stocks are declining rapidly
Recently, weaving manufacturers have not only seen a large inventory decline, but their profits have also increased. In particular, the inventory of gray fabrics of some specifications is not large, and it is already in some shortage. The price has gone up, and the profits have also increased. Mr. Zhang, who specializes in peach skin velvet and pongee, said: “We no longer have much inventory, which is significantly lower than in the previous period. The inventory is mainly peach skin velvet and pongee.”
#2 produces four-sided elastic, T400, Mr. Tang, the person in charge of T800, also said: “The inventory has almost been sold out. Our factory wants to take advantage of this period to clear out the inventory. We are willing to sell as much as we can produce in the future. It always feels uncomfortable to have inventory in our hands.” Be practical.”
The gray cloth market has also seen a wave of price increases, and many factories have issued notices of re-adjustment of prices, with the increase ranging from 0.05-0.6 yuan/meter. The price increases of most manufacturers are not large. They are just a partial correction of the previous price reduction due to poor delivery of goods. In other words, they have changed from losses to gains.
Mr. Zhang said that the price of peach skin and pongee at the factory increased by 0.05-0.01 yuan/meter, which is not much. It is a symbolic increase to save some profits, but it is still mainly for large quantities of goods.
Mr. Wu of Sedin Enterprise told the editor: “Currently, there is not much inventory of some specifications. The price of gray cloth has been slightly adjusted by 5 points. However, the overall market is not very good now. In addition, there are also manufacturers that do not increase prices. Gray cloth Price competition is still very high.”
The limited production suspension will also have a great impact on manufacturers that receive customized weaving orders, especially in terms of delivery dates. Manager Tang, the person in charge of a weaving manufacturer that undertakes custom-woven orders for T400, T800, high-density and fine-denier fabrics, said: “We make custom-woven orders, and the prices are signed on demand and cannot be changed, so there will be no changes. However, the production stoppage has a great impact on the delivery date. Our factory is now limiting production by 50%, and some orders may not be able to meet the delivery date.”
The printing and dyeing factory has insufficient production capacity, and the dyeing delivery time has been extended
In terms of printing and dyeing factories, after the Mid-Autumn Festival The printing and dyeing market has become more active, and the number of gray fabrics dyed has also increased compared with the previous period. As the “dual control” policy was gradually lifted, printing and dyeing factories gradually resumed production, and the operating rate fell back to 52%. Specifically, different regions have different production restriction requirements, and some dyeing factories are open and closed; some dyeing factories are not restricted, and the operating rate is also different, some are above 90%, and some are below 50%.
Manager Shen, the salesperson of the dyeing factory, said that the factory currently implements a “start-stop-one” production model, and most surrounding dyeing factories also follow this model.
Another dyeing factory salesman said: “Our factory has enough electricity. The dye vats have returned to normal and are all turned on, but the air conditioners cannot be turned on.”
In terms of delivery time, some factories have opened a A pause will have a greater impact on production and production capacity will be insufficient. Even manufacturers that are fully operational are recovering, so the overall production speed of the printing and dyeing market is slow. The dyeing factory is currently very crowded. Many gray fabrics have been piled up at the factory gate, and the dyeing delivery time has also been extended a lot. Many salesmen are afraid to report the delivery date, and there is great uncertainty. It is estimated that the overall delivery time is more than 15 days.
At the same time, news of rising dyeing fees has already spread across the market. At the end of the month, as manufacturers resumed production, some dyeing factories that had not increased their prices earlier began to follow suit. As of now, almost all dyeing factories in Wujiang have raised their dyeing fees.
To sum up, the impact of production restrictions on the weaving market is a decrease in inventory, an increase in gray fabric prices, and an extension of order delivery times; the impact on the printing and dyeing market is an extension of delivery times and an increase in dyeing fees.
October has now entered, and most weaving, printing and dyeing have returned to normal. Orders that were delayed in the early stage are being rushed to production. In response to the increase in costs, traders have also re-quoted based on the latest costs. Everything is running on a normal track, and the textile market may usher in a new light.
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