The Price Of Raw Materials Has Increased. Cloth Boss Is Playing A Tough Trick: Grey Cloth Is Not Sold.

Oil production reduction reached a historic agreement. On the 8 day, WTI crude oil opened at $39.414, and the market opened at a low price, breaking the price of $40. Polyester filament is on the rise, and production and sales are breaking 100! Recently, the good news on the surface of the crude oil has been increasing, and the polyester industry chain has been ignited, showing an upward trend.

From the beginning of May to now, the price of polyester filament has dropped and rebounded, and up to now, it has risen 1000 yuan per ton. Today, the era of cheap raw materials seems to be gone forever, and the era of low price of grey cloth is still continuing. This has created a very embarrassing situation in the textile market. High price raw materials produce low price grey cloth, can the enterprise not lose money? In order to deal with the loss caused by cost difference, cloth boss had to take countermeasures.

When the gray cloth appears to be in a loss, some manufacturers will close the dish.

Some enterprises say that most of the grey cloth sold recently is the inventory of grey cloth produced before May. Only when the raw material produced from that raw material purchased at that time is sold now, will it not lose money, and there will be a small profit. After May, the raw materials produced by the raw materials sold are sold at a loss, so they can only be placed, and the price of the grey cloth will be sold again.

A boss who produces conventional varieties of grey cloth revealed: "raw material has gone up so much, but the price of grey cloth has not changed. Now the grey fabric produced is definitely at a loss, and it will probably lose 0.3-0.4 yuan / meter. I can't afford this price. I will not sell any customers, I will keep them in stock and wait for sale in the second half. "

The more the stock is, the more the stock will accumulate.

Since the beginning of this year, the fabric inventory of weaving enterprises has remained high. The most important reason is that the demand for grey cloth has been greatly reduced. But recently, the market has seen a wave of goods, and the stock of grey fabrics has been improved. One of the reasons is that cloth boss will not sell the grey cloth produced in the near future. The looms are still in production, and the grey cloth is not sold, so the stock will naturally accumulate. In addition, many enterprises last year's inventory is not necessarily clear, it is like adding insult to injury.

"Our factory has a large inventory of grey cloth, with seven million eight million meters. Mainly last year, the price of raw materials was too high. In this year, the price of grey cloth was too much, so I kept putting it on sale, and sold it all year after year. After the year, the volume of goods is not good, so the stock is accumulating. " A gray cloth boss in Shengze said.

Low season will usher in large-scale production cuts

In accordance with the practices of the above cloth owners, the grey cloth produced from high priced raw materials will not be sold in stock, and the pressure on later capital will be enormous. Coupled with the gradual decline of the market market, the deepening of the traditional off-season, cut production seems to be their only way out.

"Now that raw materials have gone up again, if the price of grey cloth can not rise, I will be prepared to reduce production. At present, there are 300 looms in production, at least half of the yield reduction, leaving about 100 units to produce. Now most of our factories in Henan are inadequate, and the possibility of reducing the machine later is also very large. A factory in Henan grey cloth factory boss told Xiaobian.

In addition to the high inventory of grey cloth, the next July and August is the traditional off-season itself. Under such special circumstances this year, the reduction of production has become a common means of self-help for grey fabric enterprises. This summer, perhaps more companies will join in production cuts. Once the market has a large-scale production reduction action, grey fabric inventory will be eased. At the same time, if the order can be improved in the second half of the year, we believe that the grey fabric market will soon restore its former glory.

afterword

With a cloth boss to predict the future market, grey cloth is "easy to rise or fall". On the one hand, prices of raw materials are rising continuously, and on the other hand, the darkest moment of the global epidemic crisis has passed. From the current perspective, positive factors are more than negative factors. Therefore, the most difficult stage of textile market will pass through this off-season, and the peak season may be coming soon.