Global knitwear orders fell by 40%! Large orders for knitwear manufacturers are ebb, prices are lowe

Global knitwear orders fell by 40%! Large orders for knitwear manufacturers are ebb, prices are lower than before

 

    Since the resumption of labor in February, the number of new coronary pneumonia infections in the world has gradually increased from 100,000 to 200,000, and then it has grown faster and faster, and has now exceeded 9 million. There is no sign of stopping. Under the impact of such an unprecedented epidemic situation, the production and operation of knitting people have been greatly affected. The orders cannot be received, the cloth prices continue to fall, and the stocks continue to rise.

Global knitwear orders fell by 40%, and gross profit of weaving manufacturers shrank by half! The knitting boss has been "drinking porridge" for more than 3 months!

In June, the traditional off-season arrived early, and the overall market transaction was even more dull. The chemical fiber protective clothing fabrics that could still be shipped from time to time in the early stage also began to fade. Facing the increasing inventory, the knitting boss is really "panic"!

A fabric supplier who is a brand customer said: "At present, there are orders of 5 or 6 million meters in the factory. I am afraid to produce them! Our products have high cost and good quality. If we want to compete with market goods, The price has no advantage at all, the current market is still not looking forward, I am thinking about starting the holiday at the end of June!"

In fact, such a situation is not uncommon in the market.

   At present, the finished product inventory has become the norm for more than one and a half months. Most knitting manufacturers have stocked millions of meters of grey cloth on hand. The larger the scale, the more the inventory. In addition, according to the latest report of the International Federation of Knitwear Manufacturers (ITMF), from the beginning of the pandemic on March 1, 2020 to June 8, 2020, orders for knitwear around the world fell sharply by more than 40%. Among them, orders from fiber producers fell 42%, orders from spinning mills fell 44%, orders from weaving mills fell 46%, and orders from apparel manufacturers fell 37%.

It can be seen that the orders of all links of the entire industry chain are shrinking, and the orders of weaving manufacturers as the middle link are the most obvious. This also directly causes the market to be in short supply, the bargaining power is weak, and the profitability of enterprises is even more difficult!

Taking the most conventional polyester taffeta on the market as an example, the current market price is less than 1 yuan/meter, but the recent price increase of raw materials has exceeded 1,000 yuan/ton. Due to the large production capacity and low threshold, the output of polyester taffeta is also amazing. The social stock is also large, which has led to weak bargaining power of manufacturers, and in the face of today's market, unable to increase prices. Based on the current raw material prices, 190T polyester taff has entered a loss mode.

Now that the knitting boss who has been "unsatisfactory" for three months is more worried about the future market, coupled with the recent risk of a second outbreak of the domestic epidemic, the boss's "cautious" mentality is further exacerbated.

In late June, the operating rate of looms in Jiangsu and Zhejiang areas also fell slightly. It is reported that the current operating rate of Shengze and Changxing water jet looms has dropped to 60% to 70%; the operating rate of the warp knitting market in Haining and Changshu is 70%; Xiao Shaoyuan’s machine production is weaker due to weak orders. .

 

 

Mr. Sun, a trader who made woolen cloth in Changxing Market, said: "Recent orders in the market have become lighter recently. Many friends who opened the factory said that they will go back to their hometown on vacation and return when the market is better." Always thinking about the problem.

"Since June, we have only opened less than half of the machines, which are mainly used to produce Chunya textile and polyester taffeta. At present, our raw materials can be used until the end of the month. If the raw material prices are still rising or not falling, then we Just consider taking a holiday." Wang Zong, a knitting boss with nearly 300 looms, said. Another company with more than 200 looms has always been on vacation for a week. In his words, vacations save money than booting.

Near the time of the Dragon Boat Festival holiday, domestic and foreign trade market orders have not yet performed well, and the market has a new single fault, so more and more knitting factories are beginning to consider holiday matters, ranging from 3-5 days to 7-10 days .

Knitting manufacturers have dug a "big pit" for protective products that have been converted into production!

When the entire knitting industry was in a downturn, the concept of hype made some people seem to see the life-saving straw and put out valuable working capital to invest in it. In the end, most people only harvested chicken feathers.

1. Masks: from "hard currency" to "slack sales"

At the beginning of the year, affected by the sudden outbreak of new pneumonia and insufficient domestic mask production capacity, the mask industry has become a new outlet. Anything with the word "mask" will become sweet and sour. Manager Wang is the person in charge of a fabric company. He smelled business opportunities as early as February. He invested 500,000 yuan to register a medical equipment manufacturing company and began to produce KN95 medical masks, which were hard to find during the epidemic. According to the current production capacity, this factory can produce nearly 10,000 masks per day. However, due to a sudden drop in demand, by the end of May, Manager Wang, a temporarily transformed knitting manufacturer, had already overstocked more than 1 million KN95 mask stocks.

Even so, they did not dare to stop production-it means that the factory closed. A large number of workers in the original fabric factory have survived the difficulty by relying on the mask market, and when the fabric orders are equally bleak, what should these workers do once the mask production stops?

Because the threshold for mask production is not high, but the profit is huge, and the demand for conventional grey fabrics has suddenly dropped due to the epidemic situation, there are not many knitters who choose to switch to masks. From February to March, the profit of masks is indeed very good; but since April, because the prices of raw material meltblown cloths have skyrocketed, companies can almost only protect the capital; after May, the supply of masks on the market began to exceed supply, and the book may be Earned, but the products produced can't be sold...

2. Polyester taffeta and Chunya Textile: 100 million meters of large single ebb tide, the price is lower than the original

In addition to masks, affected by the epidemic, protective clothing has become a rigid need in the market.

Due to insufficient production of non-woven fabrics, and the price being hyped higher and higher, cheap Chunya spinning and polyester taffles have entered everyone's vision.

Due to the epidemic situation, the lack of orders from knitting manufacturers and the low operating rate for a long time, the high polyester yarn inventory of polyester manufacturers, coupled with the historical decline in crude oil prices, the final price of polyester yarn plummeted.

The cloth cannot be sold and the raw material prices are so low. In mid-April, the price of 210T polyester taffeta was only 0.8-0.9 yuan/m. However, under the hype of the concept of protective clothing, a large order of 130 million meters appeared on the market. Many knitting companies said that they took advantage of this wave of market to clear the inventory of 210T polyester taffeta, and many more companies converted the machine to 210T. For polyester taffeta, the price of this product has also risen to 1.2-1.3 yuan/m. Because the production threshold is low and the heat comes together, a large number of knitting manufacturers have switched to production. However, the good times are not long. Just over a week later, the heat of the polyester taffeta fell rapidly, and the price also fell even lower than the original, only 0.7-0.8 yuan/meter. When I was interviewing a weaving company recently, a weaving company said that there are no products to sell recently, but the most difficult to sell is 190T and 210T polyester taffeta.

In addition, a knitting trader also said that unlike non-woven fabrics, the protective clothing made by Chunya Textile and Poly Taffa cannot be naturally degraded, so it is basically impossible to export to European and American countries. Many of these protective clothing are directly stuck in The customs can't move.

Upstream unscathed, downstream defeated

In the case where the overall price of upstream raw materials remained flat compared with last year, the overall price of grey cloths fell sharply, indicating that the weaving end bears all the cost of the price increase. Upstream raw materials are almost unscathed.

If the price continues to rise in the future, it will inevitably lead to a strong dislike of weaving, either playing games with the upstream or reducing production. In the case of a poor overall economic situation and insufficient demand, knitting factories are under great pressure.

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