February is coming to an end, and the three gold, three and silver months are about to kick off. The market situation has been tepid since the beginning of the year. There are no highlight products or any particularly hot-selling regular products.
However, during a recent conversation with a textile boss, I heard that a composite yarn four-way elastic is also very popular. How popular is it? Many weaving manufacturers are vying to get the machine, but the cost is too high, resulting in factories and traders unable to make profits.
“Composite yarn four-way elastic has been selling very well recently, whether it is plain weave, twill weave or double layer. Our factory has received orders of hundreds of thousands of meters. There are many manufacturers here in Shengze doing it, but The cost of this fabric is relatively high, our factory can’t make any money at all, the market price is also very low, and traders have little profit,” said a textile boss in Shengze area.
Fortunately, it doesn’t happen once or twice that it is hard to make money and it sells well. Textile bosses can naturally come up with ways to make money for themselves.
Reduce costs and earn small profits
It is understood that the traditional composite yarn is FDY plus POY plus spandex. The current raw material cost plus twisting cost is 19.5 yuan/kg. The gray cloth weighs about 400 g/m. With the weaving cost, the price of gray cloth is close to 10 yuan/m. The current market price is around 9.5 yuan/meter. According to this market price, the textile boss cannot make any money at all, and the weaving manufacturers have no profit, let alone the traders. However, the market demand is there, so the textile boss thought of it. “Start” with the weaving method…
“Nowadays, the production on the market uses one-step composite yarn (ITY) plus spandex yarn, so the cost can be reduced by 1,500 yuan/ton, and the cost of cloth per meter can be reduced by 0.6 yuan/meter.” The textile boss said.
After the cost drops by 0.6 yuan/meter, no matter how much money the textile boss can make, at least he will not lose money on this piece of fabric, and he can even support the workers.
Since the beginning of the epidemic, the market prices of most gray fabrics have been ridiculously low, and selling at a loss has become the norm in the market. There are very few fabrics that make money. Even if a large number of orders are placed, the profits are not as high as in the past. At best, they can only maintain capital.
It was from then on that textile bosses used cost savings on raw materials, looms, and processes to gain a foothold on the edge of losing money. Of course, this method will not work for a long time. If you want to have more profits, you still need to increase market demand.
Gold, three silver and four will not be a dream!
Most textile people now place their hopes on the upcoming gold, three, and silver products. Judging from the situation of gold, three, and silver products in the past two years, this year’s gold, three, and silver products are likely to usher in a wave of concentrated orders. In a word, it will definitely be much better than the previous two years. Why?
Judging from the actual situation of gold, three and silver in previous years, the peak season is really not like the peak season. For example, last year, a large number of orders were placed when construction started after the New Year. As a result, there were very few orders placed during the peak season. Compared with the previous year The epidemic was at its peak. Foreign trade could not be exported and domestic demand was greatly reduced, making that year the worst year in history.
Logically speaking, gold, three, silver and four have not appeared for two years. At the beginning of this year, the market did not place a large number of orders as in previous years. This shows that this is an opportunity for gold, three, silver and four. During the peak season, there will naturally be a wave of orders. .
To sum up, textile bosses should not be troubled by the fact that they have not received orders yet. There is always demand, but the time has not come yet. There will always be a rainbow after the storm!
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