Apparel / Textiles & Accessories

Located in Keqiao District, Shaoxing, Zhejiang, it is the largest concentration of printing and dyeing textile industry in Asia. There are nearly 200 printing and dyeing factories here, and the printing and dyeing capacity accounts for nearly 40% of the country. Such a "important town of printing and dyeing" has recently suddenly shut down and stopped production, which has had a significant impact on the entire printing and dyeing textile industry chain. What is the current status of these printing and dyeing factories and textile factories?

Printing and dyeing factories in many places have power outages and production shutdowns, and the operating rate of textile factories is less than 50%

In a textile factory in Keqiao District, Shaoxing City, Zhejiang Province, affected by the power restriction and production restriction policy, the daily operating rate in the workshop was less than half, and most workers had to stop working for holidays.

In the workshop of this textile factory, the machines in one area are operating normally, but the contrast on the other side is very obvious. Not only the machines are in a stopped state, but also a large amount of inventory has been accumulated. The person in charge of the factory also told reporters just now, In the past, I was worried because there was no order, but now I am also worried when I have an order. Why is this?

It is understood that since September 22, nearly 200 printing and dyeing factories in Keqiao District have basically all curtailed power and stopped production, and this continued until the end of September. The printing and dyeing factory is an intermediate link connecting the upstream textile factory and the downstream garment factory. The grey cloth produced by the textile factory is processed by the printing and dyeing factory and sold to downstream garment factories through traders. Therefore, the shutdown of printing and dyeing plants will directly affect the delivery schedule of upstream textile mills and downstream traders.

Tang Liang, general manager of a knitting and spinning company in Shaoxing, Zhejiang, said that because of the power limit of the dyeing factory, overseas orders could not be fulfilled and the delivery time could not be kept up. Air transportation was required and the cost was even greater. For example, if the ocean freight is 10,000 yuan per ton, the air freight will cost 160,000 yuan per ton, and the cloth sold may only be 50,000 to 60 million yuan per ton. In this case, they will lose money per ton of cloth.

On the one hand, it is facing production restrictions and unable to fulfill orders; on the other hand, the cost pressure of textile mills is also continuing to rise. Since the beginning of this year, ocean freight has skyrocketed, and the transportation cost of overseas orders has risen linearly. At the same time, because the domestic textile industry's production capacity has grown too fast before, the demand for raw materials has grown rapidly, causing the supply of raw materials to exceed supply, and the prices continue to rise.

In fact, not only Shaoxing, Zhejiang, but many regions across the country are currently implementing measures to limit electricity and reduce production and energy conservation and emission reduction. Most printing and dyeing factories and textile mills are facing the dilemma of stopping production to varying degrees.

Inventory falls under the policy of overcapacity and production restriction in the printing and dyeing textile industry

Since last year, due to the overseas epidemic, a large number of foreign textile orders have returned. The domestic printing and dyeing textile industry has rapidly expanded its production capacity. At present, there is overcapacity and high inventory. Recently, because printing and dyeing factories and textile factories have limited power and production, the production capacity of these textile factories has been compressed, 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, because the upstream weaving and dyeing factories have stopped production and the product supply cannot keep up, their inventory has dropped from 50,000 tons last month to 30,000 tons now. about. He said that the inventory has dropped very fast recently, because the downstream has learned that the goods are going to rise, supply and demand may be tight, and the number of replenishment orders from customers will also increase. The usual daily shipment volume is about 1,000, and recently there are 1,800 and 2,000.

It is understood that the textile industry has been oversupply for a long time, because the cost of raw materials has recently risen rapidly and the relationship between supply and demand has improved, and sales prices have 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 the limited production capacity of textile mills and reduced demand, the price increase of these raw materials has gradually tightened.

Wang Zehui, the person in charge of a knitted apparel industrial park in Yiwu, Zhejiang, said that the current raw materials, including spandex, have risen from 30,000 yuan per ton to 120,000 yuan per ton, which puts great pressure on their clothing companies. This time the country has adopted a production restriction policy. Although it is currently difficult for small and medium-sized enterprises, it is still a very good policy from a long-term perspective.

In addition, the limited production of the dye industry has also had a great impact. In Shangyu District, Shaoxing, Zhejiang Province, where the dye industry is most concentrated, dye companies have uniformly curtailed electricity and limited production by 35%, leading to a rapid increase in dye prices. Take the scattered black ECT300% with the largest sales in the market as an example. The ex-factory price was 23 yuan per kilogram in early September, and now the ex-factory price is 30 to 35 yuan per kilogram, an increase of more than 30%.

Xu Changjin, chairman of an e-commerce platform for dyes and chemicals in Shanghai, said that the price increase of dyes this time was first driven by raw materials, chemicals, and bulk commodities. Secondly, the superposition of production restrictions this time may lead to short supply. Next, there may be impetus for dye price increases. Bigger. He expects that as the suspension of production really begins to extend, including the consumption of middlemen's inventory, the impact may be even greater around November.