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The high-count yarns are now on the horizon. Can the orders continue to improve?

by:Chengyi     2021-03-15
Today, the editors visited two spinning mills in Linqing with about 50,000 spindles. Although the two spinning mills are small in scale, they have their own characteristics and have relatively good business conditions.   Enterprise E produces 40-80 counts of compact and tight spinning yarns, and currently maintains a 100% operating rate. The yarn inventory is about 10-15 days, mainly 40 tight spinning. The company said that the high-count yarns were not going well in the early part of this year. In May and June, the yarn inventory reached two months. In July, the spinning mill took some production restrictions to avoid starting work during the peak electricity bill. However, the full-load operation was resumed at the end of July. Since August, the high-count yarn has been activated, and the yarn inventory has gradually decreased, but the delivery of goods is basically no profit.  Enterprise E stated that more yarns of 60 counts have been sold recently, and some large orders have appeared in the market, and there are inquiries everywhere, but the price is relatively low. In addition, due to the transfer of downstream orders and the insufficient operating rate of Vietnamese yarn mills, some high-count orders were exported to Vietnam. There are also about 1/10 machines that produce super soft yarns, which have become popular in the Guangdong market recently. They mainly produce children's clothing, and the price is at least 1,000 yuan/ton higher than the quotation of ordinary yarn. In the past, imported cotton and Xinjiang cotton accounted for about half of the raw materials used. However, due to the high-end products, customers have higher requirements for three filaments. In the past two years, all the raw materials of enterprise E have changed to imported cotton, mainly Australian cotton. Use Brazilian cotton sparingly. However, the quota is far from enough, which increases procurement costs. When the market is good, the profit of spinning is still relatively high, but the current situation is not good. This part of the cost cannot be added to the quotation, resulting in almost no profit for spinning, and the company can only plan carefully. The production capacity of enterprise F is also about 50,000 spindles. Enterprise F is like a cotton yarn supermarket. Although the products are all pure cotton yarns, they include tight and tight yarns including 30-100 yarns, strands, slub yarns, and strong twist yarns. There are more than 20 varieties including series of functional yarns, and the products are very complete, and the varieties of special yarns are still increasing, and the super soft yarn equipment is being prepared.   Since the start of construction in mid-February, Enterprise F has always been in a fully open state, and the yarn inventory is currently low. The main reason is that enterprise F responds very sensitively to the market, and adjusts its product structure in time according to market and customer requirements. Enterprise F also reflected that the market had improved in August. 80 orders had not been received for two to three months, but the shipments increased recently and the inventory was about to be cleared. The main reason is that the production of clothing for the spring and summer of next year will now begin, so the fabric requirements are more refined, and the sales of strands are expected to improve. The company believes that due to the small number of high-count yarn shipments in the first half of the year, orders may have a small 'retaliatory' increase in the second half of the year, but the price of high-count yarns has also fallen sharply. , And now it is only 33,000 yuan/ton, a drop of 6,500 yuan/ton. The overall yarn delivery can only barely maintain the cost, and there is almost no profit. Only a few special yarns are profitable, but the quantity is very small.   In general, the two companies producing high-count yarns have good product quality, “small boats make a turnaround”, and the products are close to the market, and the product structure can be adjusted in time. The overall operation is still relatively good. The managers of enterprise F often wear work uniforms like the workers, and they are always on the front line of the workshop while chatting with us. Most of the other enterprise managers we meet are also conscientious and conscientious. China's textile industry is no longer the textile industry that fought a price war 20 years ago. Nowadays, various companies are fighting a quality war and are trying their best to improve product quality or make more functional and differentiated products. Through the visits in the past few days, the editor has more confidence in China’s textile industry. The harsh environment forces companies to improve their management, strengthen market and product research and development, and continuously improve their own advantages. China’s textile industry will remain competitive in the international market in the future. It's hard to replace. Article keywords:   high count yarn
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