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Jiangsu and zhejiang fabric market doubts, profits will be severely compressed
Date:2019-03-06      Hit:
Since 2017, the water-jet weaving industry has experienced round after round of "ransacking". As a weaving cluster in jiangsu and zhejiang regions, a large number of water-jet looms have been eliminated. According to statistics, xiuzhou district of jiaxing eliminated 30,728 water jet looms in 2017, keqiao xiapu town eliminated 40 percent of water jet looms, and wujiang district of suzhou plans to eliminate 100,000 water jet looms in three years. Not long ago, in order to consolidate and expand the effectiveness of the special rectification of "scattered and polluted" enterprises, the 263 office of suzhou decided to deepen the special rectification of "scattered and polluted" enterprises. Before May 15, conduct further investigation on "messy and dirty" enterprises; By the end of December, we will have comprehensively completed the deepening of the special rectification of enterprises that are scattered or polluted, and established and improved the long-term management responsibility mechanism for enterprises that are scattered or polluted.

Due to the serious limitation of production capacity, the grey cloth market ushered in a decade of hot market, shengze, keqiao appeared "a cloth is difficult to find", "high price for goods" phenomenon, many cloth owners can easily monthly million.

Weaving capacity transfer, or the realization of blowout

Environmental pressure has become the norm, many people think that this market will continue for a long time, but do not forget, jiangzhe area water jet loom in large areas of elimination, many manufacturers have been to the adjacent areas of anhui, jiangxi, hunan, hubei and other areas. Thanks to local government support, this capacity shift is under way, with many water-jet looms already in place and others on the way.

It is reported that a number of manufacturers have completed the transfer work, and ready to put into production in the second half of the year. Industry insiders said that the earliest in May, June, the grey cloth market capacity will be realized blowout.

It is worth noting that the ministry of ecology and environment said at the first regular press conference that the second round of central environmental protection supervision will be carried out this year, and the first round of central environmental protection supervision rectification will be "looking back". Several provinces, including zhejiang, sichuan, anhui, hebei, shandong, hunan and hubei, have announced the launch of the second round of central environmental protection inspectors.

Textile market crisis of jiangsu and zhejiang enterprises where to go?

Due to the supervision of carpet environmental protection, looms in weaving markets in northern jiangsu and hubei cannot be put in place in time and production cannot be increased. The production of non-local grey cloth, which was expected to be put into production in the second half of this year, will also be postponed to April and may next year.

Grey cloth market doubts, profits will be severely compressed

No matter these transfer water jet looms are in production in the second half of the year or next year, the market is facing the crisis of overcapacity. Due to the fierce competition, the profits of grey cloth manufacturers may be severely compressed, and the business in the second half of the year may face multiple difficulties.

I. order transfer

Although the transfer of the water jet loom has not been fully put into production, but at present shengze has many enterprises from the field into the fabric. The scale of foreign weaving factories is generally large, the number of machines are basically hundreds or even thousands, are not willing to accept small orders, so jiangsu and zhejiang areas will appear the loss of large orders.

Price war

As the non-local loom mainly produces low-end products, such as polyester tafu and chunya spinning, and the grey cloth of the same quality comes from northern jiangsu, hubei and anhui provinces, the freight per meter is 3-5 cents, but the price is about 2 jiao cheaper than the local one. Therefore, when the cost of non-local fabric is lower than that of local fabric, it is not excluded that after the expansion of production capacity, the market will usher in a new round of price war, and the profit of non-local fabric will be severely compressed.

Third, the market fell back

At present, the supply of low-end fabrics is still tight, but once these production capacity is put into production, the market is likely to fall back. For example, last year there was a su mei silk market is very good, this year's production of manufacturers, supply exceeds demand, market fall back is very obvious.

Four, high-end goods are still in short supply

As foreign weaving enterprises generally produce some middle and low quality grey fabric, if you want high quality and high grade grey fabric, you still need to get goods from local grey fabric factories. Therefore, even if the water jet looms in other places are put into production, the supply of high-end fabrics in jiangsu and zhejiang markets will still be tight in the future.

V. increased production costs

At present, the international oil price is still high, will continue to rise. PTA is about to enter the big plant centralized maintenance season, according to the maintenance time, it is estimated that the second quarter PTA loss supply more than 400,000 tons, supply and demand gap increased. Polyester filament market prices continue to rise, the market trading atmosphere is good, the late polyester filament manufacturers shipping quotation or will continue to increase. With the rise of raw materials, the production cost of weaving manufacturers will remain high.

Thus, the second half of this year to next year, the market doubts, textile market "ten years" market will fall back. With the introduction of foreign production capacity, the market share decreases and the production cost increases, jiangsu and zhejiang textile enterprises are facing multiple crises. Spell price, spell scale, spell capacity transfer, these tricks are not good. Textile enterprises in jiangsu and zhejiang regions, especially those with extensive input and output mode, what are you going to take to the market in the second half of the year?