The Operational Aspect of Weaving Enterprise in Late June

320T dull polyester pongee (50D *50D，24*3*45，168cm), according to the warp uses polyester full-dull DTY50D/72F and the quotation of it is 18,400 Yuan/ton in June 25th, the cost calculation of this fabric is as follows:

The warp: (24*3*50*1.68*0.0184) /90=1.24 Yuan/m

The weft: (45*50*1.68*0.0184) /90=0.77 Yuan/m

The total costs: 1.24+0.77=2.01 Yuan/m

Now the offer tax of this fabric is 3.90 Yuan/m. The price goes weak than before, there are still demands for the high-density pongee and the shipment is smooth. Therefore, there is still a certain profit space through the cost prices plus the current weaving expenses.

(1) 190T nylon taffeta (70D*70D，20*2*30，160cm), according to the warp uses nylon semi-dull DTY70D and the quotation of it is 28,000 Yuan/ton in June 25th, the cost calculation of this fabric is as follows:

The warp: (20*2*70*1.60*0.028) /90=1.39 Yuan/m

The weft: (30*70*1.60*0.028) /90=1.05 Yuan/m

The total costs: 1.39+1.05=2.44 Yuan/m

Now the offer tax of this fabric is 3.80 Yuan/m. Judged from the profits, this fabric is almost zero profit. The performance of market order is ordinary and with great inventory pressure.

(2) 210T nylon taffeta (70D*70D，22*2*33，160cm), according to the warp uses nylon semi-dull DTY70D and the quotation of it is 28,000 Yuan/ton in June 25th, the cost calculation of this fabric is as follows:

The warp: (22*2*70*1.60*0.028) /90=1.53 Yuan/m

The weft: (33*70*1.60*0.028) /90=1.15 Yuan/m

The total costs: 1.53+1.15=2.68 Yuan/m

Now the offer tax of this fabric is 4.00 Yuan/m. The prices are temporarily stabilized in the market. A few manufacturers are selling by low price and the trading atmosphere is general. According to the cost prices add to the current weaving expenses, the profit space of it is extremely low.

228T nylon taslon (70D*160D，21*3*28，160cm), according to the warp uses nylon semi-dull DTY70D and the quotation of it is 28,000 Yuan/ton in June 25th, and the weft uses nylon yarn ATY160D and the quotation of it is 31,900 Yuan/ton, the cost calculation of this fabric is as follows:

The warp: (21*3*70*1.60*0.028) /90=2.20 Yuan/m

The weft: (28*160*1.60*0.0319) /90=2.54 Yuan/m

The total costs: 2.20+2.54=4.74 Yuan/m

Now the offer tax of this fabric is about 6.00 Yuan/m. The price of this fabric reduces slightly owing to the slump price of raw material and insufficient market confidence. Calculated from the profits, the cost prices plus the current weaving expenses, the profit space of taslon fabric is slim.

Generally speaking, there is still considerable excess production capacity in the current textile market and the high inventory situation of conventional chemical fiber fabric is also relatively serious, so it is hard to cut the inventory. At the moment, the price of raw material in upstream market is stabilized. The production and marketing of polyester products begins to recover under the support of crude oil prices, but the purchasing strength of the weaving enterprises is insufficient, the market price is likely to recover the pattern of weak consolidation in the short term. The market of downstream weaving enterprises is general, the best-selling products are little and the market transactions of domestic and foreign trade are mild due to the high inventory of pongee and peach skin.

In the aspect of operating rates, the operating enthusiasm of manufacturer is not high and some small factories shut down and have a holiday owing to the slack season of fabric sales. The operating rate in Shengze, China falls to 50%-60% and the bearish sentiment will go on in afternoon market.

Notes: Because the differences of above cost accounting are hard to avoid owing to the technical control and the purchasing price of raw material etc. it is only for reference.