Sudden! The “Printing and Dyeing Town” has stopped production! Merchants are worried even if they have orders! Are you still losing money selling cloth? ! what’s going on?
Located in Keqiao District, Shaoxing, Zhejiang Province, it is the largest concentration of printing, dyeing and textile industry in Asia. There are nearly 200 printing and dyeing factories here, accounting for nearly 40% of the country’s printing and dyeing production capacity. Such a “printing and dyeing center” has suddenly shut down production recently, which has had a considerable impact on the entire printing, dyeing and textile industry chain. What is the current status of these printing and dyeing factories and textile factories?
Many printing and dyeing factories have lost power and shut down production. The operating rate of textile factories is less than 50%
In a textile factory located in Keqiao District, Shaoxing City, Zhejiang Province, due to the power restriction and production limit policy, less than half of the workshop’s daily operating rate was reduced, and most workers had to stop work and take holidays.
In the workshop of this textile factory, the machines in one area are running normally, but the contrast on the other side is very obvious. Not only are the machines at a standstill, but also a large amount of inventory has been accumulated. The person in charge of the factory just now also Tell reporters that in the past, you were worried because you had no orders, but now you are worried about having orders. What is the reason for this?
It is understood that since September 22, nearly 200 printing and dyeing factories in Keqiao District have basically suspended power supply and suspended production until the end of September. Printing and dyeing factories are the intermediate links connecting upstream textile factories and downstream garment factories. The gray fabric produced by the textile factory is processed by the printing and dyeing factory and then sold to downstream garment factories through traders. Therefore, the suspension of production in printing and dyeing factories will directly affect the delivery progress of upstream textile mills and downstream traders.
Tang Liang, general manager of a knitting company in Shaoxing, Zhejiang, said that due to power cuts in the dyeing factory, overseas orders could not be completed, delivery was delayed, and air transportation was required, resulting in greater costs. For example, sea freight is 10,000 yuan per ton, air freight is 160,000 yuan per ton, and cloth sales may only be 50,000 to 60,000 yuan per ton. In this case, they will still lose money per ton of cloth.
On the one hand, they are facing production restrictions and cannot fulfill orders; on the other hand, the cost pressure on textile mills continues to rise. Since the beginning of this year, shipping costs have skyrocketed, and the transportation costs of overseas orders have skyrocketed. At the same time, because the production capacity of the domestic textile industry has grown too fast, the demand for raw materials has grown rapidly, resulting in raw materials being in short supply and prices continuing to rise.
In fact, not only Shaoxing, Zhejiang, but also many regions across the country are currently carrying out measures to limit power supply and production and energy conservation and emission reduction. Most printing and dyeing factories and textile factories are Facing varying degrees of production suspension difficulties.
Inventories fell under overcapacity and production restriction policies in the printing, dyeing and textile industry
Since last year, due to overseas epidemics, large quantities of foreign textile orders have returned, and the production capacity of the domestic printing and dyeing textile industry has expanded rapidly. Currently, there is overcapacity and high inventory. Recently, due to power and production restrictions in printing and dyeing factories and textile factories, the production capacity of these textile factories has been reduced, and inventories have begun to fall from high levels.
Zhao Zhengrong is the person in charge of a textile trading company in Shaoxing, Zhejiang. Recently, due to the shutdown of upstream weaving and dyeing factories, product supply cannot keep up. Their inventory has dropped from 50,000 tons last month to now. About 30,000 tons. He said that inventory has dropped very quickly recently because downstream people have received news that goods will increase, supply and demand may be tight, and customers’ replenishment orders will also increase. Normally, the daily shipment volume is about 1,000 pieces, but recently it has been around 1,800 or 2,000 pieces.
It is understood that the textile industry has been oversupplied for a long time. Due to the recent rapid increase in raw material costs and the improvement of supply and demand relations, sales prices have also begun to rise slightly. Zhao Zhengrong said that because upstream costs are also increasing, dyeing and weaving costs will also increase, so the overall cost will rise, and the selling price will also be adjusted.
In fact, since last year, the price of textile raw materials has begun to rise rapidly. From June last year to September this year, the price of cotton increased by more than 50%, and the price of some chemical fiber products increased by more than 60%. Recently, due to limited production capacity of textile mills and reduced demand, price increases for these raw materials have gradually tightened.
Wang Zehui, the person in charge of a knitted apparel industrial park in Yiwu, Zhejiang, said that raw materials, including spandex, have increased from 30,000 yuan per ton to more than 120,000 yuan per ton. For them, This kind of clothing enterprise is under great pressure. This time the country has introduced a production restriction policy. Although it is temporarily difficult for small and medium-sized enterprises, in the long run, it is still a very good policy.
In addition, the impact of production restrictions on the dye industry is also great. In Shangyu District, Shaoxing, Zhejiang, where the dye industry is the most concentrated, dye companies have uniformly limited power and production by 35%, causing dye prices to begin to rise rapidly. Taking the dispersed black ECT 300%, which has the largest sales volume in the market, as an example, the ex-factory price was 23 yuan per kilogram in early September. Now the ex-factory price is 30 to 35 yuan per kilogram, an increase of more than 30%.
” Promoted by commodities, secondly, the superposition of production restrictions this time may lead to a shortage of supply, and the impetus for rising dye prices may be greater in the future. He expects that as the shutdown really begins to extend, including the consumption of middleman inventories, the impact may be greater around November.�
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