"Close the market" frequent textile industry butterfly effect continues

In the textile industry in 2016, the days from raw materials, production to sales can be described as sad. The downward pressure on the economy, the arrival of the Internet economy, and the industrial restructuring ... All this has made this year's textile people unable to bear. Under the effect of the butterfly, the Keqiao merchants broke out completely.

 

Event Review:

 

At 9 o'clock on the morning of October 28th, all the merchants in the Old Market and East Market of Keqiao Textile City, the largest concentration of textiles in Asia, began to strike the market voluntarily. The on-site business was closed down. Some merchants also put a note on the door, "boycott unscrupulous intermediaries, declined high rent!" Some merchants pulled up the banner "business is difficult to do! Ask for rent! Random chaos, operators can not afford!"

The market merchants stated: “Our market merchants are very helpless in making this move. Market rents are increasing prices, and the bull run rampant to disrupt market behavior. At the moment, the common appeal hopes to resist the unchecked increase in rents and control, and insists on the expiry of the contract.

 

 

However, this was not the first case of a strike in this year. As early as September of this year, Keqiao, Zhongda, and Hanzheng Street had made a lot of noise because of the rental of shops.

Wuhan Hanzheng Street, once one of the top ten clothing markets in China. Due to logistics costs, labor costs, rent costs ... than the apparel wholesale market in foreign markets and other factors are also gradually declining. According to reports, in the first half of this year, more than 500 merchants in Wuhan’s Hanzheng Street are planning to switch off the facade of Hanzheng Street and move collectively to Hankou North.

The impression given by the textile market in 2016 is that growth is weak. In an economic year, three-quarters of the time has passed. The performance of this industry seems destined to no longer be staged. Instead, all kinds of raw materials are rising wildly.

 

The price of cotton soared

 

At present, the situation of cotton spinning is still not optimistic. The upstream “green and yellow are not connected” and “soaring prices”, the resistance to downstream price increases, and poor ordering have caused the current plight of cotton spinning companies. The upstream cotton market has no major short-term short-term, in the short-term stable to moderate and weak trend operation, although Zheng cotton fell after a week, the market bearish sentiment warming, but encouraged by the ICE cotton, Zheng cotton is expected to stabilize; Although the downstream demand has increased, but once you use up the "grain bank" hoarded some time ago, the profits of cotton spinning companies will be "in jeopardy," and the price of cotton will rise again. The cotton spinning bosses really have to "lose money and drink".

 

Polyester soared

 

Recently, the fiery trend of polyester filaments seems to have intensified as prices have skyrocketed. With the soaring boost from the upstream, the weaving factory, which has gradually reduced its profit margins, has finally been unable to hold off. The cloth price has been eagerly tested, and the market seems to be developing with a better vision for the upstream and downstream linkages. Although the polyester filament soared, but the downstream, although the order has increased compared to before, but the price has not been increased, individual off-season fabrics do not rise or fall, in such a large range of raw material prices, the downstream in the bitter days have had to Forced to increase prices, the leading army shade cloth weaving association has changed its status quo and has begun to jointly raise prices. Although its effectiveness is still unknown, in order for the overall textile market to have a good cycle, the downstream fabric prices will rise here. The stage is particularly important.

Rising dyes

This year is also an eventful event for the printing and dyeing industry. The release of a series of environmental protection measures has severely cracked down on the phenomenon of indiscriminate discharge. In the face of the situation, printing and dyeing enterprises can only invest a lot of funds to upgrade and upgrade environmental protection equipment. Afterwards, we ushered in the G20, and companies had to stop production and production. With rising costs, there is no alternative but for companies to hike prices. Jiaxing Dyeing Factory starts to hike from RMB 1000-2000 on September 1st! Fujian dyeing factory rose in August and October! Printing and dyeing companies in Jiangsu and Zhejiang Provinces will also hold a large area of ​​processing fees in November

 

The textile industry has obviously reached an anxious crossroads, requiring a qualitative breakthrough and looking forward to a rapid and comprehensive transformation. However, in this age of complex transitions in technology, culture, and economy, the security transformation that an industry expects is obviously not that easy.

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