Three years after another, after the large-scale elimination of water-jet looms in the coastal areas of Jiangsu and Zhejiang, the production capacity of water-jet looms has increased again!
According to statistics from the China Filament Weaving Association, as of the end of 2022, the scale of looms in my country’s filament weaving industry reached 836,000 units, including 770,000 water-jet looms, a year-on-year increase of 5.48%. In 2022, my country’s total output of chemical fiber filament fabrics will reach 59.5 billion meters, a year-on-year increase of 6.82%.
Since the “restriction of spraying” environmental protection trend started in 2017, there has been a wave of transfer of looms from the coastal areas of Jiangsu and Zhejiang to the inland areas of the central and western regions. The emerging water-jet loom production capacity transferred to northern Jiangsu, Anhui, Hubei, Jiangxi and other places in the past two years far exceeds the number of water-jet looms eliminated by traditional textile clusters in the Yangtze River Delta region. The number of water-jet looms in the entire textile industry is much greater than before the “jet restriction” action!
With the great migration and explosion of water-jet loom production capacity, downstream weaving companies have been the first to bear the brunt, and the textile industry has also undergone earth-shaking changes.
Homogeneous competition in the industry is becoming more and more serious
Although trade in the filament weaving industry has achieved year-on-year growth and market popularity has increased, it cannot be denied that the homogeneous competition in the industry is becoming more and more serious.
“The low threshold for engaging in the filament weaving industry is the main reason for the explosive growth of weaving companies in the past period.” Zhou Zhengxu, general manager of Nantong Hengchang Textile Co., Ltd. said frankly that a few years ago, as long as enterprises had certain financing If you have the ability, you can spend five to six million yuan to buy a dozen looms and enter this industry on a small scale. “The equipment can be paid in installments, and the technical requirements are not high. They can be easily operated.”
Irrational investment is also the root cause of the industry’s difficulties. “Judging from years of experience in the industry, as long as the market rebounds slightly, companies will soon expand production.” The person in charge of Yongshang Textile Co., Ltd. gave an example. In the second half of 2019, as downstream customers tried to develop new products to drive consumption, The increase in varieties led to an increase in demand for gray fabrics, and the market liquidity suddenly improved, resulting in the addition of about 2,000 looms in the local area. However, this prosperous period only lasted a few months. “For example, the market only needs 10 million meters of fabric, but now 11 million meters are circulating in the market. We cannot think that only the 1 million meters of fabric are affected, and the other 10 million meters cannot be sold at a good price.”
The industry is in trouble not simply because demand is suppressed, but market supply also exceeds actual demand. In recent years, due to the wave of elimination along the coast, more and more weaving factories have been set up, the number of machines has doubled, and products are produced in conventional varieties, resulting in a constant surplus of inventory on the market. Moreover, in the next 1-2 years, the oversupply of conventional products will still be difficult to improve. The inventory cannot be fully digested, and I dare not and have no funds to continue placing orders, which is a dilemma.
No one can accurately predict the next market trend, but overcapacity is a definite fact. The market itself also has the function of self-regulation. It will take some time to achieve a balance between supply and demand. Textile people, let’s work together!
</p
