A few days ago, the news that the warp knitting factory had stopped production together made the city a storm. Many people in the industry were “talking about” the suspension agreement, and some even suspected that it was Really stop, or fake “acting”? The following is the warp knitting factory’s proposal to suspend production:
Just when the editor is thinking about Wujin, Haining, and Tongxiang Will the suspension of production by warp knitting enterprises in Changzhou affect other weaving enterprises? When we received news that Taizhou has also joined the suspension of production activities:
We can get the following information from the proposal:
1. The raw materials of chemical fiber polyester filament are rising like crazy
2. The production and operation of warp knitting enterprises have been seriously affected
3. Downstream weaving enterprises have become the hardest hit area after the price increase of chemical fiber raw materials
In order to To avoid losses, warp knitting enterprises in Wujin, Haining, Tongxiang, Changzhou, and Taizhou will no longer continue production after clearing their inventory of raw materials.
After the news came out, it immediately exploded. Almost everyone pointed the finger at the suspension of production – the crazy rise in polyester filament! What measures Boss Bu will take next has also become the focus of market participants recently. According to the voting results on the topic of cloth factories in the past few days, most people chose to stop production, some people raised prices, and of course many people chose to endure it for a while! To this end, the editor specially visited some companies to hear what the cloth bosses think.
Viewpoint 1: If you go up, so will I, and it will be healthier if you go up
Boss Chen of Wujiang Dayin Textile said: “Polyester filament has risen so much. Naturally, we who make fabrics have to follow the price increase. Although the price has also increased, it is not a big increase. We still need to communicate with customers about the price increase. Communicate well and gain understanding from customers. After all, the cost of raw materials has skyrocketed, and we have been forced by costs to increase prices. This is also conducive to the development of a virtuous cycle in the market.”
Chen What the boss said is very pertinent. The cost of raw materials has skyrocketed, and downstream weaving companies will naturally have to increase slightly. Most weaving companies will not increase too much. They and their customers often take half of the cost. For example, the original cost of a piece of cloth was 150 yuan, and weaving companies used to sell it for 200 yuan. Now the cost of a piece of cloth has become 200 yuan, so the weaving company will naturally increase the price, but it can no longer sell it for 250 yuan. Yes, I will discuss with the customer to sell it for 225 yuan. (The examples do not represent actual costs and profits)
View 2: You can rise as you wish, I have nothing to fear
According to voting monitoring data, Faced with the surge in confidence in polyester filament, most people choose to stop production. The main reason is that the fabric cannot rise. On the one hand, the market itself is in the off-season in July and August, and the products themselves are not very easy to sell, let alone the price increase, and no one buys them; on the other hand, the raw material cost of weaving enterprises accounts for a high proportion, and the profits of production are really too high. If it is too low, you may not make any money or even lose money for a day. No one can do a loss-making business, so it is better to shut down the business. In addition, some companies that sell market goods are still unable to receive receivables. The products cannot be sold, and even after they are sold, they cannot get cash. Where can they get the money to purchase goods and reproduce them? This is also one of the reasons why some companies have stopped production. one.
Xiao Li from a weaving factory in Shengze said that the suspension of production is not a special phenomenon. In the past, polyester filament prices also experienced crazy prices, and they could not be sold during the off-season. They could not make any profit in one day. Without money, working for one day is equivalent to quitting, and naturally no one will be willing to work. It is better to wait until the “Golden Nine, Silver Ten” in the second half of the year.
To sum up, the reasons why many people choose to stop production are nothing more than the following three aspects: 1. The market is already in the off-season, and fabrics cannot rise. 2. Production profits are experiencing negative growth. 3. Shortage of capital chain
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Regarding the unreasonable rise in polyester filament, some people joked and said, let it go up, let it go up, there is nothing to be afraid of. Anyway, I have stopped and will not buy it!
View 3: Grit your teeth, Hold on a little longer
Boss Lu of Wujiang Zhongli Textile Co., Ltd. said: “The price of polyester filament is like housing prices at present. It cannot fall down, but we have to raise prices because The market is only so big. If you don’t do it, others will naturally do it. Moreover, the company needs to operate normally. When the company stops, the workers will leave. When you want to open it, are you still looking for people? The market is like this. There is always a need. Some people go to buy those prices that have gone up. The price of the order they received has already been negotiated. You can’t ask for more money because of the increase in polyester filament. You have to do it even if you lose money. In business, you have to be “faithful”. ”
Boss Lu is obviously an old man and has long been accustomed to these ups and downs, ups and downs. When everyone is eager to try and want to stop production or increase prices, they silently suffer the bitter pill of rising polyester filament prices and concentrate on producing their own products! There are many such companies on the market, and it is really not easy.
Editor’s note: Downstream enterprises With so much resistance to high-priced raw materials, how can the raw materials market be so “arrogant”? The answer is: No! Just yesterday, PTA fell back below 7,000 points, and the previous “high-flying” momentum has fallen back.
If polyester manufacturers are really deliberately raising prices just because of the high demand for downstream polyester yarns, then the pressure on the downstream weaving industry will become greater and greater, such as the Taihu Lake Shade Cloth Manufacturers There will be more and more large-scale grouping actions such as price increases and warp knitting companies suspending production. Once the weaving industry cannot withstand the pressure, it will inevitably affect the entire textile industry chain.
Amidst the turmoil of skyrocketing polyester filament prices in this off-season, cloth bosses have their own business experiences. Whether it is price increases or production suspensions, or persistence, everyone should work hard! After getting through this period, “Golden Nine and Silver Ten” are waving to us!
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