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Raw material is rising again, talk bad talk collapse! Textile enterprise: the order is not small, but the business is more and more difficult!

2021-07-29 11:25:36
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Recently, the price of textile raw materials has been increased for many times.


On July 22, spandex increased by 500 yuan/ton, and the total increase of spandex last week has reached 1500 yuan/ton. The day before, some spandex factories even informed that the price would increase: 3000 yuan/ton for 20D and 2000 yuan/ton for 30D, which is an amazing increase.


In addition to the rising prices of raw materials such as spandex, the price of polyester filament also began to rise. Monitoring on related platforms shows that recently, the mainstream negotiation price of POY150D products in the market is 7,850 yuan/ton, an increase of 325 yuan/ton from the previous month. The price of FDY150D is 8025 yuan/ton, increased by 250 yuan/ton; The price of DTY150D is 9200 yuan/ton, up 400 yuan/ton from the previous month.


Fabric quotation is valid for 3 days only, can order but no price


The price of raw materials that changes every week, even several times a week, has affected the normal production of textile enterprises. After all, the textile market orders from the quotation to the actual operation, the middle is generally 1-2 months of time difference. However, according to the change degree of raw material prices, it is obviously impossible for the previous quotation to guarantee fabric profits in 1-2 months. For this reason, many textile enterprises have shortened the fabric price period of validity, so as to ensure their own fabric profits.


In the face of the drastic rise in raw material prices, the appropriate response is to immediately stock up and stock up, and try to control their costs at a lower price level, which is the reason for "buying up and not buying down" in the market. The continuous rise in the price of raw materials in the recent stage, especially the purchase of spandex raw materials, most of the market is such a response, especially to receive a large order or ready to receive a large order of weaving factory, it is necessary to prepare goods as early as possible.


Take spandex as an example, according to a trader, they received more than one million meters of ammunition orders in June, in order to deal with the continued rise in raw material prices, they signed a contract with the weaving factory in advance, and the weaving factory immediately carried out the relevant raw material storage and stock up. This way seems to be avoiding spandex increases, the subsequent order to operate a wise way, but this method is a prerequisite, that is must in the case of fiber raw material supply, if supply tension, spandex 1 million meters of all play cannot be bought, so the cost rise is inevitable.


The actual spandex market has now fallen into the want to buy is not necessarily to buy the situation. According to a four-side elastic-weaving factory director, they are now in line to buy spandex, but also not want to buy can buy, or even need to find someone to go through the back door. The quantity purchased in a factory does not last long, and it is unlikely to be used in one customer order, more or less to ensure that each customer order can be produced.


In addition, normally, if the raw material price changes more than 500 yuan/ton, the fabric price will change accordingly. For this reason, they clearly stated to the customer that now the elastic fabric quotation is valid for only three days, and they need to quote again after three days, and they can order in advance, but the price is not legal.


If the talks fail, the helpless textile enterprises:

The order is not small, but it is more and more difficult to make money!


In the face of the coming raw material price rise tide, in addition to spandex fabric, more fabric enterprises are out of reach.


"It's hard for the price to go up because customers won't accept it." Suzhou Wujiang Weihua Textile Co., LTD. Manager Li Changchun revealed that the company's current order number and the epidemic before the basic flat, but the profit has been a significant decline, "in the past, we are too lazy to make a dime order, but now only a few cents of the order everyone rush to do."


Yang Jiandong, general manager of Haimen Youyuan Textile Co., LTD, also said helplessly: "Although the orders are not small, it is getting harder and harder to make money. Since the second half of last year, the price of cotton has risen rapidly, and so has the price of yarn. In the case of our grey cloth, for example, the cost has generally increased by 20-30%."


"Can't adjust the price casually, once talk bad talk collapse." This has become the consensus of many surveyed fabric enterprises, especially those in charge of small and medium-sized enterprises. In the upstream of the "drum pass flower" type of price rise tide, fabric enterprises are helplessly digested more cost pressure.


The wave of price rises spread to the whole industrial chain


It cannot be denied that although some fabric enterprises are in an embarrassing situation -- orders are clearly in the red, but they still want to continue to receive orders. An unnamed person in charge of fabric enterprises told reporters: "This is mainly for the purpose of diluting the upfront fixed cost expenditure, but also to retain workers." 'It's hard to find workers now,' he said. 'If we shut down, we have to pay more for workers, so we lose more money.' The person in charge admitted, In order not to let the equipment of the factory idle too much, even if the order loses a lot of money, the company has to be brave to dry up. If the capacity utilization rate reaches 70 to 80 percent, companies will be able to cut some loss-making orders."


Yang Jiandong believes that textile raw material prices skyrocketing, fabric enterprises will inevitably be impacted. The pressure of soaring prices of cotton, cotton yarn and polyester cotton yarn ultimately needs to be shared by various parties, such as fabric enterprises and garment buyers. A large price increase in one link alone cannot be solved, and all parties need to make concessions.


In the face of this round of heat rise tide, feel anxious not only fabric enterprises.


An anonymous Shenzhen clothing brand technical director said to reporters, since this year this round of price rise tide on the impact of the company is still relatively large. "It is unclear whether the cost will be passed on to consumers and how much they can absorb. The way we are now taking is to unite with other clothing brands, gather all the materials to purchase together, prepare a lot of materials, negotiate the price with fabric manufacturers, so as to reduce the cost." He predicts a correction in the second half of the year, when prices should fall. But he also pointed out that even if raw material prices do fall, it is difficult for fabric companies to change immediately. "After all, the loss of blood in the first half of the year needs to be compensated."


This is indeed the concern of many fabric enterprises: in the first half of the year, the operation of fabric enterprises has been greatly affected. Next, if the raw material prices can not return to the normal price in time, it will certainly bring great challenges to the operation of fabric enterprises for a whole year.

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