Textile Machinery Industry: Hot Market, Hidden Crisis

In the first half of this year, driven by the overall recovery of the textile economy, it is not easy for textile machinery companies to make money. Whether it is cotton spinning equipment, chemical fiber equipment, printing and dyeing equipment, or the sale of knitting and non-woven equipment, only one word is used to describe it. :fire!

Statistics show that in the first five months of this year, the textile industry output value reached 32.225 billion yuan, an increase of 53.54%; sales income was 32.478 billion yuan, an increase of 50.82%; profit 1.842 billion yuan, an increase of 286.13%; export 625 million The US dollar rose 38.33% year-on-year; imports 1.492 billion US dollars, an increase of 76.78% year-on-year.

Unexpected high growth

Since the beginning of this year, most textile machinery companies have been unable to make orders, and there have been few shortages in recent years. In particular, the soaring volume of orders for large-scale cotton spinning equipment in the textile machinery industry has made manufacturers even less prepared.

Since the beginning of this year, the rapid growth momentum of China's textile industry has exceeded everyone's expectations. In particular, it has just experienced the financial crisis and orders have picked up so quickly that many companies are overwhelmed. Some people have described this year's textile industry as follows: raw materials increase prices every day, and the boss counts the number of cash to hand; the spinning and weaving companies have no time to make orders; customers need to bring cash to pick up goods; printing and dyeing manufacturers are too busy to get a job and find a relationship to arrange work orders. .

The hot market demand for the textile industry has also quickly passed to its upstream - the textile machinery industry. Since the beginning of this year, the textile machinery market has seen a shortage of supply in recent years. In particular, the soaring volume of orders for large-scale cotton spinning equipment in the textile machinery industry has made manufacturers even less prepared. In the first quarter of this year, the growth of cotton spinning equipment was mainly concentrated on equipment such as fine spinning machines and automatic winders with collective doffing that could reduce labor and improve the level of production automation. By the second quarter, the orders for ordinary spinning machines were also large. With growth, some parts companies have even sold out all the inventory in the previous two years or are unable to supply the goods. Therefore, many companies in the first half of this year had sales and sales rates exceeding 100%. Compared with the same period of last year, the sales volume of Tonghe Textile Machinery Company in the first half of this year increased by 200%, increased by 150% on the cradle, and increased by 200% on compact spinning. The same is true for chemical fiber equipment. Zhejiang Yuejian Textile Machinery Co., Ltd., the largest texturing machine manufacturer in China, has sold 150 sets of texturing machines per month. Among them, the YJ1000 high-speed texturing machine has been set to May 2011.

Compared to the cotton textile equipment market this year unexpectedly improved, those with high efficiency, energy saving, reduce the advantages of employment of textile machinery equipment, market sales growth this year, basically in people's expectations. For example, air-jet looms, computerized flat knitting machines, and printing and dyeing equipment with energy-saving and emission-reduction functions that can improve product quality and production efficiency have been relatively well sold last year, and this year still maintains a strong sales situation. On the one hand, these devices meet the needs of technological transformation, structural adjustment, and industrial upgrading of enterprises, and are in line with the needs of national industrial policies; on the other hand, there is still a large market space. For example, computerized flat knitting machines currently hold about 1.6 million units of domestic hand-operated flat knitting machines and only 100,000 units of computerized flat knitting machines. The replacement of manual flat knitting machines by computerized flat knitting machines is an inevitable trend for industry development and industrial upgrading. Since this year, Ningbo Yuren Textile Machinery Co., Ltd. has sold more than 2,000 units a month, and is expected to reach 25,000 units in the year. The major computerized flat knitting machine manufacturers, such as Zhejiang Feihu and Fujian Hongqi, also showed a situation of production and sales that were in short supply. Another example is the printing and dyeing equipment, the main domestic printing machine manufacturing enterprises - Fujian Juwang Printing and Dyeing Machinery Company, Xiaolong Textile Machinery Company, etc., and the annual orders have been filled. Shaoyang Textile Machinery, a key production enterprise of China's stenting machine, had an order of about 400 million yuan in the first half of the year, far exceeding the previous year's level. The growth of the demand for printing and dyeing equipment is inseparable from the country’s increasingly stringent requirements for mandatory indicators for energy saving and emission reduction. In particular, the “Admission Conditions for Printing and Dyeing Industry” implemented from June 1st undoubtedly heightened the printing and dyeing enterprises. The threshold of entry has forced the printing and dyeing companies to upgrade.

At present, there are few prepayments for orders for textile machinery equipment. Once the situation changes in the second half of the year, together with the listing of new cotton in September, textile companies must purchase new cotton in advance, resulting in a shortage of funds. Whether they can deliver the goods on time will draw a Big question mark.

The textile market seems to be hot this year, but there are many risks. Raw material costs rose too fast and product profits were severely reduced. Since June last year, PTA prices have increased by 35.46%, cotton prices have risen by 42.11%, polyester prices have increased by 11.4%, and yarn and factory wire prices have also been rising. The industry generally believes that the strong rebound in the sales of cotton yarn and cotton cloth is not entirely due to market demand, but rather the proportion of factors that supplement inventory and speculation. First of all, people predict that this year's cotton production cuts, coupled with India’s ban on cotton exports, have led many companies to rush to buy cotton, which in turn has promoted the production of cotton yarn. Second, the price of cotton raw materials has skyrocketed this year, making part of the original investment in real estate and coal. Investors have turned to invest in cotton and cotton yarns. Third, textile companies are desperately hoarding raw materials as soon as funds are available, based on expectations of the appreciation of the renminbi and expectations of raw material price growth. Driven by the above three demand factors, this year, the textile market, especially the cotton textile market, has shown a trend of rapid growth, and textile machinery equipment has also experienced hot sales.

And this kind of market is not entirely out of market demand, making the head of many cotton spinning equipment manufacturing companies feel uncomfortable with the large number of orders that come to hand. Some companies are worried that orders that are being processed can be delivered on time; some companies are concerned that product quality cannot be guaranteed. The reporter learned from the interview that a large number of orders not only made the OEM unable to do so, but also caused tremendous pressure on the sub-suppliers of spare parts. Due to the financial crisis, most sub-suppliers did not have much inventory, and major components such as castings were snatched off the line. Therefore, in the case of supply shortage, it is inevitable that there will be a phenomenon that the radish will not wash mud quickly, and the patrol orders will be delivered, and the quality of the product will be neglected. In addition, the timely return of funds is a risk that textile machinery companies must face. At present, there are few prepayments for orders for textile machinery equipment. Once the situation changes in the second half of the year, together with the listing of new cotton in September, textile companies must purchase new cotton in advance, resulting in a shortage of funds. Whether they can deliver the goods on time will draw a Big question mark.

The outlook for the industry is not optimistic. The increasing pressure on the appreciation of the renminbi, the rising prices of raw and auxiliary materials, the increasing monthly labor costs, and the rising tide of rising salaries are all increasing. As a result, orders presented by the industry in the first half of the year are unprecedentedly hot. Abnormal situation may be difficult to reproduce in the second half.

In fact, the concerns of the textile machinery enterprises about the market have already appeared since the beginning of July: Orders for weaving companies have been significantly reduced, and the price of cotton yarn has gradually declined from the end of July. The hot scene in the industry seems to be coming to an end.

At present, the increasing pressure for the appreciation of the renminbi, coupled with the increased risk of the euro, further increases the difficulty of textile exports. The price of raw and auxiliary materials has risen steadily, the labor costs have increased month by month, and the number of uncertain factors such as the increase in salary has increased. Therefore, the unusually unprecedented unprecedented orders for the industry in the first half of the year may be difficult to reproduce in the second half of the year. The textile industry has It may face a new round of severe tests.

Recently, the continuous appreciation of the renminbi has not only affected the export of textile companies, but also affected the export of textile machinery companies. The relevant responsible person of Zhongli Machinery Company complained that the company's externally signed and effective production contract, due to the appreciation of the renminbi, profit evaporated in an instant; Jinan Tianqiping belt company currently has nearly 50 million yuan contract affected by the exchange rate Can't deal.

It is generally believed that under the influence of various factors, the growth of the textile industry in the second half of the year will return to a more rational state. At the same time, the growth of textile machinery equipment will not be as fast as in the first half of the year. Gao Yong, vice president of the China Textile Industry Association, believes that the textile machinery industry will show a high level of openness throughout the year and will continue to run smoothly after July. He believes that even if the textile industry still has the potential for growth in demand for textile machinery equipment in the second half of the year, the textile machinery industry does not have such a large production supply capacity. In the past two years, textile machinery companies have gradually begun to shift from the original scale of production to small batches and varieties. It is precisely for this reason that many textile machinery companies have been unable to cope with unexpected orders for the first half of this year, and they cannot make shipments. From the perspective of this special situation in the first half of this year, the textile machinery companies that are undergoing transformation seem to be suffering from losses. However, in the long run, textile machinery companies must undergo transformation, and the short-term pain will inevitably result in long-term sustainable development of the company.

We are also pleased to see that even in the face of fierce sales orders in the first half of this year, there are very few textile machinery companies that have scaled up. This shows that the textile machinery companies that have experienced the market economy for so many years are now very rational and mature. The judgment of the market is also very accurate. Therefore, in the face of the superimposed effects of various unfavorable factors in the second half of the year, it is believed that textile machinery companies have already thought of countermeasures and are well prepared.