Since the beginning of 2022, the start-up rates of downstream looms have shown a rapid downward trend. It can be seen from the comparison chart of the start-up rate trends of water-jet, air-jet, warp knitting and circular knitting machines that the highest decline has occurred in air-jet loom companies. The range reached 35.50%. Why did air-jet loom companies decline so significantly?
Orders are out of stock and electricity is used in an orderly manner
The air-jet loom collapsed when it was started
The orders of air-jet loom companies have been significantly differentiated since the beginning of the year. Most companies have continued production after the end of the year due to the orders they received at the end of the year, so the overall industry start-up rate has been supported. For other companies, although the number of large orders is low, some companies have small orders and bulk orders. Orders were placed, so the industry’s production was still busy. However, as market orders were gradually delivered, the superimposed terminal market was weak, and the operating rate dropped rapidly.
Judging from the comparison of energy consumption between air-jet looms and other looms, while there is a lack of market orders, the textile market has ushered in orderly electricity consumption in the industry since mid-August, and most weaving textiles have also received off-peak electricity consumption. notify. Air-jet looms are different from other looms in that electricity consumption occupies a large cost. In addition, in recent years, high-energy-consuming enterprises have been punished for using electricity. Therefore, the operation rate of such enterprises has accelerated downward trend with the issuance of policies.
Weaving customers rush for orders and compare prices!
Jet advantage no longer available
Another deep-seated reason is that the product positioning of air-jet looms is relatively awkward, and the market has been sluggish this year. It’s rare that a piece of fabric sells well, and major manufacturers are vying for orders. Unfortunately, there were so many orders that the textile bosses had to do everything they could to keep it in their pockets. Generally, all air-jet looms that can be made with water-jet looms can be made, except that the gray fabric has too high viscosity, and most of the water-jet looms that can be made with air-jet looms cannot be made. Compared with water-jet looms, the gray fabrics produced by air-jet looms are of higher quality and higher in cost. However, at present, downstream end customers themselves are more inclined to reduce costs in terms of quality and price due to lack of orders and high cost pressure.
“Jet products mainly produce cupro ammonia fabrics, acetic acid fabrics and rayon fabrics, etc.; the raw materials involved are basically cupro ammonia, acetic acid, rayon and the like, some of which are imported raw materials, the cost is relatively high, and the cost competitiveness is not strong. There are not enough orders received,” a foreign trade textile company said truthfully.
Take a 900D bead chain as an example. The price of gray fabric produced by jet machine on the market is about 2-3 cents higher than that of water-jet production. With this cost of 2-3 cents, under today’s market conditions, customers will definitely choose it. Water spray manufacturer. “Generally, the daily profit of a water-jet loom producing 900D bead chains can be guaranteed at present. However, the daily production cost of the air-jet loom is higher than the customer’s selling price. In fact, we can’t make any money at all, and we can only protect our capital.” “said the textile boss.
Not just jets
Water jet, circular knitting and warp knitting are also difficult!
Of course, jet knitting machines, circular knitting machines, and warp knitting machines are also facing serious orders. The spread of the epidemic in many places has led to a decrease in purchasing intensity. Economic recovery will take time to buffer. Most residents choose to reduce corresponding expenditures on purchasing daily necessities, textiles, clothing, etc. Most residents The operating rates of downstream weaving companies are between 40% and 60%, and the average decline rate from previous years is between 10% and 34%. In the short term, the operating rates of the weaving market still maintain the current position.
In the current environment where apparel orders in domestic and foreign markets have not received a major boost, the operating rate of the loom industry is difficult to improve and remains low. At present, it is generally reflected in the factory that the inventory of gray cloth is at a high level, and most users choose to consume the inventory in the second half of the year. However, the actual demand for textile clothing is sluggish and the order volume is limited. The current suppression of cash flow in the factory and cost expenditure will become the top priority of the enterprise.
Regular fabrics in the market are priced but not available, and cloth merchants have low inventories. Therefore, prices between buyers and sellers are in a stalemate. Gray fabric factories are less willing to reduce prices. Although there are no large orders, factories prefer to reduce loads and do not consider lowering prices in the short term. shipments, so gray fabric inventories are still expected to rise again. Although the current power restriction policy is implemented, considering the current situation and the low operating rate of the industry, it is expected that relying on orderly power consumption measures to alleviate the pressure on gray fabric inventories is less likely. A node that can wait for orders to be placed in large quantities.
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