The Jiangsu and Zhejiang grey cloth market is overwhelmed, and profits may be severely compressed.

Since 2017, the water-jet weaving industry has experienced a round of “ransacking”. As a weaving cluster in Jiangsu and Zhejiang, a large number of water jet loom has been eliminated. According to statistics, Jiaxing Xiuzhou District eliminated 30,728 water jet loom in 2017, and Keqiao Xialu Town eliminated 40% of the water jet loom, while Suzhou Wujiang District plans to eliminate 100,000 water jet loom in three years. Not long ago, Suzhou “263” Office decided to implement the special rectification of “scattering and pollution” enterprises in order to consolidate and expand the effectiveness of special rectification of “scattering and pollution” enterprises. Before May 15th, the company will re-examine the “scattering and pollution” enterprises; before the end of December, it will comprehensively complete the special rectification of “scattering and pollution” enterprises, and establish and improve the long-term management responsibility mechanism of “scattering and pollution” enterprises.

Due to severely limited production capacity, the grey cloth market has ushered in a hot market for ten years. Shengze and Keqiao have a phenomenon of “difficult to find one cloth” and “high price for goods”. Many cloth owners can easily enter the market. million.

Weaving capacity transfer, or will achieve blowout

Environmental protection high pressure into the normal, a lot of people think this market will continue for a long time, but do not forget, water looms large in Jiangsu and Zhejiang provinces out of the area, many manufacturers already have moved to neighboring Anhui, Jiangxi, Hunan, Hubei and other regions. Due to the strong support of the local government, this capacity transfer is in full swing. Many water jet loom have settled down, and some are on the way to migration.

It is reported that many manufacturers have completed the transfer work and are ready to officially start production in the second half of the year. According to industry insiders, the fastest in May and June, the production capacity of the grey cloth market will achieve blowout.

It is worth noting that recently, the Ministry of Ecology and Environment said at the first regular press conference that this year, a second round of central environmental protection inspections will be launched. At the same time, the first round of central environmental protection inspectors will be reviewed. . In the second round of the Central Environmental Inspector is about to begin, Zhejiang, Sichuan, Anhui, Hebei, Shandong, Hunan, Hubei and other provinces have announced the launch of provincial environmental inspectors.

The textile market crisis has a lot of reasons for Jiangsu and Zhejiang enterprises to go?

Due to the carpet-type environmental supervision, the weaving machines in the weaving market in northern Jiangsu and Hubei could not be put in place in time, and the output could not be upgraded. The foreign fabrics that were expected to be put into operation in the second half of this year will also be postponed until April and May next year.

The grey cloth market is overwhelmed and profits may be severely compressed.

Whether these transferred water jet looms are put into production in the second half or next year, the market is facing a crisis of overcapacity. Due to fierce competition, the profits of grey cloth manufacturers may be severely compressed, and the business in the second half of the year will face multiple difficulties.

First, order transfer

Although the transferred water jet loom has not yet been fully put into production, there are already many companies in Shengze that have imported fabrics from other places. The scale of weaving factories in the field is generally large, and the number of machines is basically one hundred or even thousands. They are not willing to accept small orders, so there will be a large single loss in Jiangsu and Zhejiang.

Second, the price war

Because the field loom mainly produces low-end products, such as taffeta, pongee based, and the same quality of fabric, come from northern Jiangsu, Hubei, Anhui and other places, per meter shipping in 3-5 minutes, but the price ratio Local cheaper around 2 corners. Therefore, in the case that the cost of foreign fabrics is lower than that of the local market, the market will usher in a new round of price wars after the expansion of production capacity, and the profit of grey cloth will be severely compressed.

Third, the market fell back

At present, the supply of low-end fabrics is still tight, but once these capacities are put into production, the market is likely to fall back. For example, last year there was a market for Shumei silk on the market. This year, there were more manufacturers, and the supply exceeded demand. The market fell back.

Fourth, high-end sources are still in short supply

Since foreign weaving companies generally produce some medium and low-end quality grey fabrics, if they want high quality and high grades, they still need to get goods from local grey cloth factories. Therefore, even when the foreign water jet loom is put into production in large quantities, the future of Jiangsu and Zhejiang markets will be high-end. The supply of fabrics will still be in a tight state.

V. Increased production costs

At present, international oil prices are still at a high level and will continue to rise in the future. PTA is about to enter the centralized inspection and maintenance season of the big factory. According to the inspection time, it is estimated that the supply of PTA loss in the second quarter will exceed 400,000 tons, and the gap between supply and demand will increase. Polyester filament market conditions continue upward, the market trading atmosphere, late quotes or polyester filament factory shipments will continue to increase. As raw materials rise, the production costs of weaving manufacturers will remain high.

It can be seen that from the second half of this year to next year, the market is overwhelmed, and the market for the “10 years of hardship” in the textile market is about to fall. With the introduction of capacity in the field, the market share is reduced and production costs are increasing. Jiangsu and Zhejiang textile enterprises are facing multiple crises. Fighting prices, scaling, and capacity transfer, these tricks are not good enough. Textile enterprises in Jiangsu and Zhejiang provinces, especially those that adopt extensive input-output models, what are you going to do in the second half of the year?