The epidemic has lasted for nearly half a year. Although domestic production has gradually returned to normal, the domestic textile industry is still facing a severe situation due to the continued spread of foreign epidemics, especially the newly confirmed cases in Beijing, which has added many disadvantages to this market. Certainty. Last week, reporters from China Cotton Network went deep into the Henan textile industry cluster and conducted on-site research and visited many textile companies in Zhengzhou, Xuchang, Luohe, Shangqiu, Zhoukou, Nanyang City, etc., covering a distance of more than 1,600 kilometers, just to reveal the production and sales of textile companies under the epidemic. puzzle.
The enterprise differentiation is obvious
Henan is an important yarn production base in China. The average annual total yarn output ranks third in the country, among which pure cotton Yarn output is second only to Shandong Province. After visits and surveys, the reporter found that the epidemic has caused great changes in Henan’s cotton yarn products and markets. Orders for foreign trade export-oriented enterprises have dropped significantly, and production and operations are under heavy pressure. However, the production of traditional domestic sales enterprises has remained normal, and the impact of the epidemic has been relatively limited.
A textile company in Kaifeng told reporters that the company mainly produces medium and low-end cotton yarns such as carded 21S, 32S, and 40S, and its products are mainly sold domestically. Since the outbreak of the epidemic, corporate production and sales have been very stable and there has been no periodic stagnation.
As to whether textile companies are worried about future sales as they are about to enter the traditional off-season, the person in charge of the company said that the domestic demand market is stable and they are not worried about downstream orders. After all, the country has a population of 1.4 billion. big market.
The production and sales of traditional domestic demand enterprises are normal, while foreign trade enterprises are under great pressure. According to the latest statistics from the General Administration of Customs of China, in May 2020, my country’s textile and clothing exports were US$29.554 billion, a month-on-month increase of 38.36%, of which clothing (including clothing and clothing accessories) exports were US$8.9057 billion, a year-on-year decrease of 26.93% . From January to May 2020, my country’s cumulative export volume of textiles and clothing was US$97.965 billion, a year-on-year decrease of 0.80%, of which the cumulative export volume of clothing was US$38.2131 billion, a year-on-year decrease of 22.80%. Data show that although the foreign trade situation has recovered, export pressure is still very high.
A combed yarn manufacturer in Shangqiu stated that the current inventory of combed yarn is significantly higher than that of ordinary yarn. Carded yarn, the main reason is that combed yarn woven products are mid-to-high-end products, mostly export-oriented, and domestic consumption is limited. Although foreign trade export orders have recovered, the volume is very small, and the effect on boosting the market is limited. Affected by the spread of the epidemic abroad, foreign trade orders still face great uncertainty. In addition, companies now mainly place orders in autumn and winter. The finished products of carded yarn are relatively thick and heavy to meet the needs of seasonal characteristics, while the finished products of combed yarn are light and thin, but are subject to seasonal restrictions.
In general, it is a common phenomenon that the sales of carded yarn of Henan textile enterprises are significantly better than that of combed yarn.
The differentiation of raw material costs between regions is the key
During this survey in Henan Province, The reporter found that there are also great differences in business operations between different regions. It is reported that the operating rate of most enterprises in Nanyang Xinye County is basically around 50%, which is significantly lower than other textile parks in Henan. After learning from the company, we learned that Nanyang Xinye County has a special geographical location. It is located in the southernmost part of Henan and borders Hubei Province. It has been significantly more affected by the epidemic than other areas in the province.
A textile company in Xinye County said that the earliest time for local companies to resume work is around mid-to-late February, and most companies only fully resumed work in early April. Compared with companies in other parts of the province, they resumed work in March. , nearly a month late. After local companies resumed work, the epidemic prevention and control policies were stricter than those in other areas of the province, resulting in low return rates and low operating rates, which had a great impact on companies. The domestic textile situation was very good before the holiday. Many companies reserved large amounts of raw materials, and companies in Nanyang were no exception. The scale of reserve inventory (the raw material scale of some companies reached 6 months’ consumption) exceeded that of companies in other areas of the province. As a result, after the holiday, under the influence of the epidemic, , when other companies have exhausted their pre-holiday high-priced stocks and started to use low-priced cotton for spinning, Xinye companies still use high-priced stock raw materials to spin yarn. In the face of brutal market competition, they are unable to gain a price advantage. Therefore, both the company’s operating rate and order volume are worse than those of companies in other regions. Facing future market uncertainty, some highly indebted companies are under great pressure to survive.
Another company in Xinye County said that although carded yarn can be sold as long as the price is reduced, In order to control losses, we do not dare to lower prices easily. If prices are lowered further, losses will further increase and companies will not be able to bear it.
The total production capacity of the textile cluster in Xinye County is about 2 million spindles, which is larger than other parks in the province. It is also faced with the concentration of textile production capacity, a large shortage of workers, and corporate benefits that cannot attract workers. And other issues. According to reports,There is a large electronics factory in the Xinye County Industrial Park. Not only does it have a good environment and high wages, but most importantly, wages can be paid on time. Compared with the high temperature and high humidity working environment of textile enterprises, it is very attractive.
Manage to achieve benefits and focus on vitality
During this survey, the reporter found that Henan enterprises are very Paying attention to management and improving equipment automation, even for a small company with 50,000 to 60,000 ingots, the automation of the production line has left a deep impression on people. All roving processes adopt the intelligent roving frame system of joint thickness and fineness. The transportation of thickness and fineness joint rails is in automatic mode. The creels of the spinning frame are all replaced by joint thickness and fineness rails. The yarn change of the spinning frame adopts the “whole row yarn change” mode. The whole project realizes the thickness and fineness network. Bao Lian.
The company said that textile companies are facing labor difficulties and how to use limited employees to improve labor efficiency. Production efficiency is an issue that enterprises must seriously consider. Only by strengthening management levels, increasing technological investment, and improving product automation levels can greater benefits be created. For example, for a company with a size of 50,000 yuan, its own company employs about 40 people and has a total monthly salary of more than 800,000 yuan. Another company of the same size has a total monthly salary of about 1.3 million yuan, which is nearly 500,000 yuan higher than ours per month. Enterprises with such inefficient management simply cannot compete with us in the market.
“If you persevere, the rotten wood will not be broken; if you persevere, the metal and stone can be carved.” The reporter found that some companies in Henan focus on the textile industry and are making steady progress. They are able to calmly cope with the cold winter in the industry. There are also companies that develop aggressively, operate in multiple industries, and have too much time to take care of when encountering difficulties. There are even companies that continue to provide blood transfusions from textile companies to help companies in other industries, which has greatly hindered the development of textile companies.
The domestic demand market is stable and consumption is showing a downward trend
In this survey, the company told reporters, Cotton prices are now in a state of shock, with limited room for decline and limited upside. As the domestic demand market is stable, companies that mainly sell domestically are producing normally, and companies’ raw material inventories remain low. As long as the price of Zheng cotton falls, they will be purchased at a timely price based on orders.
It is reported that the inventory of raw materials and finished products of Henan textile enterprises remains at a low level. Some enterprises maintain raw materials for about 20 days, and some maintain it for about 1 month, which is significantly lower than that of enterprises. Inventory scale during the same period; in addition, some companies have zero product inventory, while some companies maintain it at about 10 days.
A cotton warehousing company said that as cotton prices rise, business is relatively deserted. Once cotton prices fall, the phone will ring non-stop because the number of companies purchasing raw materials at different prices has increased significantly. Against the background of stable domestic demand market, companies need to regularly purchase raw materials to maintain production.
Textile enterprises in Zhoukou City said that they now purchase raw materials at fixed prices. As long as the cotton price falls, The price will be determined based on the basis difference on the market. The current market is full of uncertainties, with cotton prices rising and falling. In order to control raw material risks, we can only reduce the scale of raw material inventory as much as possible. For cotton spinning enterprises, the main cost of cotton yarn is cotton, and the rest is wages, electricity bills and other expenses. If you control the raw materials well, you can take the initiative in the market.
During the investigation, the reporter also learned that there is a downgrading trend in the downstream consumer market. Enterprises believe that in addition to the significant reduction in orders for foreign trade combed products, the domestic combed product market is also shrinking, with sales volume significantly lower than that of carded products. Generally, the price of combed products is relatively high, while the price of carded products is relatively low. Under the influence of the epidemic, people’s income has decreased, which has affected consumer spending. Nowadays, the country advocates a street stall economy, and they sell some low-priced clothes. Therefore, at this stage, clothes with novel styles, high quality and low price are more popular among consumers. </p
