The textile market seems more flat in late May. The negative impact of the Sino-US trade war on the market has been smoothed by the recent continued depreciation of the RMB, but the market still feels that the upper, middle and lower sectors of the textile industry are showing certain weaknesses, and many textile bosses are sad about what the next days will be like.
Recently, a cloth owner complained to the author: Recently, raw materials have been falling, customers have been holding down prices with us for 20 cents, but the finished pants they made are sold at 1000 yuan each! Indeed, compared with hundreds of clothes in recent years, the proportion of fabric prices is negligible. But many purchasers will continue to depreciate prices, in fact, the profit margin of weaving enterprises is really not much now!
Raw materials & ldquo; Black May & rdquo; Industrial chain is falling!
The plunge of PX can be said to be a precursor to the face of the whole polyester industry chain, and the price of raw materials upstream of PTA and MEG has also fallen steadily. With the weakening of PTA suppliers'repurchase efforts on May 16, PTA spot experienced a cliff-breaking decline, PTA spot fell sharply, and ethylene glycol fell below the 4300 line.
After the escalation of trade tension between China and the United States, the price of polyester industry has been declining, and profits of some polyester products have been completely swallowed up. Affected by the weakness of raw materials in the upstream, polyester filament has also been declining, falling below the historical high since last year and reaching a new low in the near future. Other non-polyester chemical fibre raw materials, such as viscose staple fibers and nylon filaments, have been declining, and there is no sign of stopping the decline in the near future.
& nbsp; & nbsp; & nbsp; & nbsp; as can be seen from the table above, in the past half month, all kinds of bulk textile raw materials have shown different degrees of decline, of which POY declined the most, by nearly 10%, spandex has been in a relatively stable product, a decline of nearly 2%. As far as weaving factories are concerned, according to the usual practice, they will keep stock of raw materials for 10-15 days. That is to say, most of the raw materials used in production are raw materials before price drops. Therefore, on the surface, lower prices of raw materials and loose cost of raw materials in the market will bring benefits to enterprises. However, in practice, the transmission of raw materials lags behind, coupled with the shrinking demand environment of weaving factories at present. Next, the voice is not strong, so the price of grey cloth goes down along with the decline of raw materials. It is very difficult for manufacturers to make a certain profit from the rise and fall of raw materials.
Production capacity impact, Ditaff into the margin of profit and loss
According to the sample enterprises monitored by China Silk Capital Network, compared with the same period in previous years, the profits of weaving factories are lower at present, & ldquo; at this time last year, we made more than 100 yuan a day for Daytaff, and now it is good to do so without loss. Most Daytaff looms make 10 yuan, and 190T Daytaff looms are going to lose money. & rdquo; said Shen Zongzhong, owner of a weaving mill in Wujiang area.
Due to the impact of peripheral production capacity, the market of conventional products has been in the peak season this year, and the market of these products has become more weak in May. Some manufacturers said that the polyester taff fell from 1.70 yuan/m at the beginning of the year to 1.10 yuan/m at present. (According to common sense, the cost of raw materials is 0.10-0.20 yuan/m for every 1,000 yuan drop in grey cloth). At the beginning of this year, FDY of polyester filament has dropped 1300 yuan/ton. If only the decline of raw materials is considered, grey cloth only needs to fall 0.10-0.20 yuan/m, but now the price of polyester taff has fallen by 0.50 yuan/m, of which 0.20 yuan/m.30 yuan/m is eroding the original profit margin of the manufacturer.
It is reported that 230T DTF can still maintain its cost in the market at present, and 190T DTF has entered the edge of profit and loss. & If the market goes on like this, it means weaving a day's cloth and losing a day! But the machine can't stop. It can only be sold at a low price for cash. & "rdquo," said Chen Zongzhong, the owner of another weaving mill.
& nbsp;
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; compared with the products such as Dacroft and Chunya Textile, the silk-like series did not perform as expected in the first half of the year, but in the first half it was still able to get & ldquo; qualified & rdquo; achievements: in March-April, the silk-like series shipped smoothly as a whole, most manufacturers'inventory was in a low position, and even some products (extinction SPH card breaking and 1/2 obliquity) appeared shortage before and after the Spring Festival. As a result, the profit situation is better than that of Daytaff and Chunya Textile.
This year, 80% of textile mill owners will become poor.
In fact, after the 4 trillion yuan policy in 2008 to stimulate market consumption, the market will turn downward sharply in 2012, and environmental protection will drive the market in 2017. Until 2019, textile enterprises will come from the crossroads to be or not to be again. These textile enterprises have also clearly realized that under the pressure of environmental protection, coupled with rising prices and land, the market will change. It's bound to change as well. With the emergence of excess capacity, the fierce competition will intensify, which will gradually erode the low cost of profits, coupled with the rising wages of workers, many related production enterprises are more difficult to transform, so naturally they will face the survival law of survival of the fittest.
With the aggravation of many negative factors, the pressure of weaving manufacturers will increase, and some enterprises will even close their factories because they can not receive orders, which will ultimately lead to the market mentality difficult to repair in the short term. Some joke that this year, many weaving mill owners will become poor, more than 80% of them are facing cash pressure, market shrinkage, environmental supervision, and the urgent need for transformation. It's sad, but it's true!
