Recently, Heathsmile company conducted research on cotton and textile enterprises in Shandong. Textile enterprises surveyed generally reflect that the order volume is not as good as in previous years, and they are pessimistic about the market prospects in the face of falling cotton prices inside and outside.
A textile enterprise with the scale of 60,000 ingot, the product is mainly 21S cotton yarn, the current opening probability is about 50%, the order is mostly small single short order, the enterprise arranges production according to the order, and strives to maintain the cotton yarn inventory at the minimum level, or even zero inventory, when there is no order, then shut down and have a holiday. At this stage, it is mainly sold on credit, and the average account period is one month, but the payment is usually not received after the account period, and it needs to be repeated for about one and a half months to receive. At the same time, textile enterprises in order to avoid business risks, the cotton inventory cycle is maintained at about one week. In terms of cotton procurement, when imported cotton is less than domestic cotton 1000-2000 yuan/ton, enterprises will choose to use imported cotton.
The situation of another textile enterprise is slightly optimistic, because its final products have a relatively stable foreign trade order, so it can still maintain profit. Although the company can receive long orders, because of its bearish cotton prices in the future, it is also maintaining a zero inventory strategy of yarn and adopting a buy-as-you-go approach in cotton procurement. The person in charge of the enterprise said that affected by the economic environment at home and abroad, the domestic order volume fell significantly, although the foreign order can maintain a certain number, but the overall trend of consumption downgrade.
Post time: Jun-17-2024