Why Is The Worst Year Of The Textile Industry In The Mouth?

Introducer

Hot weather, bad workshops, poor cash flow, and high inventory are all the problems facing the textile industry. After entering the traditional off-season in June, the textile industry has never failed to live up to the "off-season" title. The price of gray fabrics, efficiency, inventory and orders in comparison with the past two years were seen as "visible to the naked eye". Under this condition, looms started to fall to the lowest level after the Spring Festival, and there seemed to be signs of continued downward momentum. "This year is the worst year" has become the voice of almost the majority of the textile industry, and from the Zhuo Chuang information monitoring of orders, prices, inventory, although for the worst year gap, but relatively different from the previous two years. In a short span of a year, the textile industry has undergone nearly 180 rounds of development. However, after careful examination, it seems that all these changes are rational and reliable.

Zhujiang information monitoring data showed that as of the end of 7, the integrated boot rate of Jiangsu and Zhejiang looms was around 62%, and 15 percentage points lower than that of last month. In July, when the textile industry was in the off-season, the terminal order was weak. The inventory of gray cloth in Jiangsu and Zhejiang accumulated to a new high within two years. Specific to the production base, Shengze area affected by high temperature weather and high inventory, weaving enterprises in the region started to drop larger. Currently, the loom loom in Shengze started near 60%, the air-jet loom was near 70%; the loom loom in Changxin area started at about 8, and the Xiaoshao machine operating rate dropped to 50%. Warp knitting industry, due to its operation characteristics of warp knitting machine's daily height consumption, results in a significant decline in the efficiency of the fabric inventory and the difficulty of raising prices. In some regions, some of Haining's warp knitting factories started to drop to around 60%, down by more than 10 percentage points from the previous month, and some factories started to work hard at 7 yuan in consideration of the loss of workers. Changshu's warp knitting machine started to 60%-65%.

It is not hard to see that at present, the start up of weaving industry is already low except for the Spring Festival holiday, and the downward trend is still continuing. Compared with the beginning of July 2017 and the beginning of August, the beginning of August and the beginning of August, the 72% of the beginning of the month of August was significantly lower than that of the end of August. This year's loom looms start to reflect the downturn in the textile industry, while the high profit and comfort zone of the textile industry has been kicked out of the past two years, and the first is the overcapacity of looms. Secondly, the downturn in the terminal garment market and Sino US trade are also exacerbated.

Excess production capacity

6-7 months for the textile industry traditional off-season, weaving and bomb business orders polarization phenomenon is remarkable, upstream PTA and raw material polyester price fluctuation fluctuation of gray cloth price rise and fall, the benefits decline, cash flow resistance; the existence of short warehouse inventory after rapid storage, stop July 31, 2019 Jiangsu and Zhejiang comprehensive grey cloth inventory about 42.5 days, nearly two years inventory high. On the whole, factors such as Sino US trade uncertainty, grey cloth efficiency decline, high temperature and bad weather, sluggish single cash flow, poor cash flow and high gray cloth inventory have led to a continuous decline in downstream looms.

According to Zhuo Chuang's information monitoring data, there were 42.5 days in Jiangsu and Zhejiang comprehensive billet storage in the end of 7, and 27.5 days at the end of July 2018, and 32.5 days at the end of July 2017. The data showed that the inventory of grey fabric in July 2019 was much higher than that in the past two years. In 2017, the wind of environmental protection started to lift the looms from the coastal areas of Jiangsu and Zhejiang to the inland areas of the central and western regions. As of July 2019, there were more than 120000 looms loom away in Jiangsu and Zhejiang provinces, and Jiangsu, Northern Jiangsu, Anhui, Henan, Hubei and Jiangxi became the new textile cluster. At present, the capacity of the loom loom has been approaching 40000 in the Anhui province. The productivity of the loom loom has reached about 23000 in the Hubei Province, and the loom loom capacity in the Jiangxi province will reach 60000. In the past two years, the newly developed loom loom in Northern Jiangsu, Anhui, Hubei and Jiangxi has exceeded 200 thousand units, far exceeding the number of loom looms eliminated by traditional textile clusters in the Yangtze River Delta region.

In the periphery of the loom production capacity to migrate and add, the original Jiangsu and Zhejiang provinces are also "unwilling to be lonely". In recent years, the continuous good market has led enterprises to over introduce production equipment, and the productivity of warp knitting machines in Haining, Zhejiang has increased by nearly 20%. The new capacity has been flooding inside and outside, and the downstream weaving enterprises have changed from last year's supply shortage to overcapacity, and the textile industry's poor prosperity, and the low demand for upstream polyester, leading to the high inventory of the downstream fabric, which has become the normal market. On the whole, at present, under the primary pressure of loom overcapacity, the relationship between the terminal garment industry slump and Sino US trade tensions in 2019 has become the last straw to crush the textile industry.