Since August, the Tongxiang Warp Knitting Chamber of Commerce and the Haining Warp Knitting Association have successively issued proposals to suspend production. Due to the sharp increase in prices of upstream chemical fiber raw materials, the production and operation of warp knitting enterprises have been seriously affected. It is recommended that their affiliated warp knitting enterprises will After the inventory is consumed, we will stop production and shut down the machine to jointly resist the unreasonable price increase of chemical fiber raw materials. Who among us Oxford cloth wholesale manufacturers can say otherwise!
To this end, reporters from Securities Daily interviewed representatives from the Warp Knitting Association, downstream warp knitting companies and upstream chemical fiber companies, trying to understand the turmoil caused by this price increase.
The association recommends that the production stop is due to destocking
Why does the local warp knitting association recommend that the company stop production? What is the current operating status of warp knitting enterprises?
A director surnamed Wang of the Zhejiang Warp Knitting Industry Association (Haining Warp Knitting Industry Association) said in an interview with a reporter from Securities Daily that the initiative to suspend production was mainly based on two considerations. One is to hope that the economy will The second is to call on upstream chemical fiber companies to adjust prices and return to reasonable profit margins.
“The proposed suspension of production is to a greater extent an industry adjustment and a suggestion for warp knitting companies to adjust their own production capacity. It is not what the outside world understands. We are just to force upstream companies to cut prices. Make this call.” The person further told reporters, “Since last year, warp knitting companies have introduced too much equipment and their production capacity has expanded rapidly. The warp knitting companies have a large backlog of raw material inventory and produced product inventory. It is currently in the off-season of the warp knitting industry. We feel that now should be a relatively good period for industry adjustment, so we take this opportunity to call on companies to suspend some production, reduce inventory, and speed up the return of funds. This is also out of consideration for protecting companies.”
“In addition, chemical fiber companies have been increasing prices in the past year or so. We also hope to take this opportunity to call on chemical fiber companies to slightly lower the price of raw materials, or to slightly adjust their profit margins. To the extent that our downstream warp knitting enterprises can bear,” the person above added.
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