The Operational Aspect of Weaving Enterprise in Early October

 The price of raw material in the upstream market has been started to loose since late September, the overall situation of downstream order is general and the inventory rebounds back slightly compared with the previous periods. Although the market gets warm again, the slack season is still filled with the whole textile market. Both domestic and overseas marketing are confronted with many difficulties. Therefore, what is the operational condition of the weaving enterprises in late October? In order to solve this question, we look into the weaving enterprise and market to observe the current living condition of the weaving enterprises through the production cost of grey fabrics. (Note: We took on the raw material prices of Oct. 8th as the cost accounting.)

260T dull polyester pongee (75D *75D，18*3*32，165cm), according to the warp uses polyester full-dull DTY50D/72F and the quotation of it is 18,500 Yuan/ton in Oct. 8th, the cost calculation of this fabric is as follows:

The warp: (18*3*75*1.65*0.0185) /90=1.37 Yuan/m

The weft: (32*75*1.65*0.0185) /90=0.81 Yuan/m

The total costs: 1.37+0.81=2.18 Yuan/m

Now the offer tax of this fabric is about 3.20 Yuan/m. The price pulls up 0.10 Yuan/m than before. There are the rigid demands in the market and the procurement is relatively smooth. In addition, the profit space of this fabric is still in the low range, and the expectation is not very high in afternoon market.

228T nylon taslon (70D*160D，21*3*28，160cm), according to the warp uses nylon semi-dull DTY70D and the quotation of it is 27,800 Yuan/ton in Oct. 8th, the weft uses nylon yarn ATY160D and the quotation of it is 31,000 Yuan/ton, the cost calculation of this fabric is as follows:

The warp: (21*3*70*1.60*0.0278) /90=2.18 Yuan/m

The weft: (28*160*1.60*0.031) /90=2.47 Yuan/m

The total costs: 2.18+2.47=4.65 Yuan/m

At present, the offer tax of this fabric is about 6.00 Yuan/m and the price goes steady. Now the demand of taslon fabric put in a good performance in the market. Calculated from the profits, the cost prices plus the current weaving expenses, the profit space of taslon fabric has not improved.

(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 27,800 Yuan/ton in Oct. 8th, the cost calculation of this fabric is as follows:

The warp: (20*2*70*1.60*0.0278) /90=1.38 Yuan/m

The weft: (30*70*1.60*0.027) /90=1.01 Yuan/m

The total costs: 1.38+1.01=2.39 Yuan/m

Now the offer tax of this fabric is 3.70 Yuan/m, the price maintains stable. The nylon yarn price of the upstream raw material goes strong than before, but the nylon taffeta price is difficult to rise. The main reason is that the downstream procurement drops back than before and is lack of market confidence. Judged from the profits, the cost prices plus the current weaving expenses, the profit space of this fabric is general.

(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 27,800 Yuan/ton in Oct. 8th, the cost calculation of this fabric is as follows:

The warp: (22*2*70*1.60*0.0278) /90=1.52 Yuan/m

The weft: (33*70*1.60*0.027) /90=1.11 Yuan/m

The total costs: 1.52+1.11=2.63 Yuan/m

Now the offer tax of this fabric is 3.90 Yuan/m. The price pulls up 0.05 Yuan/m than before. In addition, the market order is relatively stable and the intension of price lifting in the manufacturers is seldom. According to the cost prices add to the current weaving expenses, the profit space of it has not any real improvement.

(1) the warp suede (105D*200D，9.5*5*24，163cm), the cost calculation of this fabric is as follows:

According to the warp uses sea-island yarn 105D and the quotation of it is 19,600 Yuan/ton in Oct. 8th, and the weft uses polyester FDY200D and the quotation of it is 11,200 Yuan/ton.

The warp: (9.5*5*105*1.63*0.0196) /90=1.77 Yuan/m

The weft: (200*24*1.63*0.0112) /90=0.97 Yuan/m

The total costs: 1.77+0.97=2.74 Yuan/m

Now the offer tax of this fabric is 4.80 Yuan/m and the price changes little. Recently, the warp suede sales in the market are very good and the downstream procurement enthusiasm is taller. This fabric can be used for sofa products and garment products. At present, the profit margins of the warp suede are slim and it hit the production enthusiasm of manufacturers.

(2) the weft suede (75D*225D，20*3*31，174cm), the cost calculation of this fabric is as follows:

According to the warp uses polyester FDY75D/36F and the quotation of it is 12,200 Yuan/ton in Oct. 8th, and the weft uses sea-island yarn 225D and the quotation of it is 17,400 Yuan/ton.

The warp: (20*3*75*1.74*0.0122) /90=1.06 Yuan/m

The weft: (225*31*1.74*0.0174) /90=2.43 Yuan/m

The total costs: 1.06+2.43=3.49 Yuan/m

Now the offer tax of this fabric is 4.50 Yuan/m. The price declines 0.10 Yuan/m than before. Although the shipment has enlarged, the volume gap is bigger compared with the same period of last year. According to the cost prices add to the current weaving expenses, the profit space of the weft suede has shrunk.

(1) the polyester peach skin with plain 144F (75D*150D，18*3*27，160cm), the cost calculation of this fabric is as follows:

According to the warp uses polyester DTY 75D and the quotation of it is 14,600 Yuan/ton in Oct. 8th, and the weft uses polyester DTY150D and the quotation of it is 12,700 Yuan/ton.

The warp: (18*3*75*1.60*0.0146) /90=1.05 Yuan/m

The weft: (150*27*1.6*0.0127) /90=0.91 Yuan/m

The total costs: 1.05+0.91=1.96 Yuan/m

Now the offer tax of this fabric is 3.20 Yuan/m. The price increases 0.10 Yuan/m than before. According to the cost prices, the profit space of this fabric is still low.

(2) the polyester peach skin with twill 288F (75D*150D，18*3*35，160cm), the cost calculation of this fabric is as follows:

According to the warp uses polyester DTY 75D and the quotation of it is 14,600 Yuan/ton in Oct. 8th, and the weft uses polyester DTY150D and the quotation of it is 12,700 Yuan/ton.

The warp: (18*3*75*1.60*0.0146) /90=1.05 Yuan/m

The weft: (150*35*1.6*0.0127) /90=1.19 Yuan/m

The total costs: 1.05+1.19=2.24 Yuan/m

Now the offer tax of this fabric is 3.60 Yuan/m. The price follows smooth trends. Although the sales of the polyester peach skin are still strong in the market, the profit margin of this fabric is soft owing to the high cost.

Generally speaking, the weaving market shows signs of faltering after the double festival of the National Day and the Mid-autumn Festival. Although the overall market has shown a gradual climb in volume, the gap is still large compared with the same period of last year. See from the specific data, now the order declines about 15% year-on-year. The losses of the enterprise seem to be difficult to reverse due to the rising production cost, high inventory pressure and insufficient momentum of the production and marketing. At present, the weaving enterpriser fell helpless for the situation of the slack season, the operation of the whole industry chain is faced with many risks, the enterprise financing difficulties are still not been completely resolved and the situation should not be optimistic. In addition, because the consumer confidence is hard to boost in the terminal market, the purchasing fabric of the garment factory keep wait-and-see mood and the inventory of the weaving enterprise is difficult to drop sharply, the overall inventory is in one and a half months or so. It is expected that the demand will decline gradually after the late Oct. along with the end of the textile season cycle, and the enterprise will face more challenges.

In the aspect of sales, the fabric in autumn and winter is still taking the dominant position this year, the lab dips of garment fabrics in spring and summer has been started and it is given priority to light-weight fabrics. In the aspect of variety, the demand for polyester pongee, nylon taffeta is relatively stable in the market and the sale of polyester peach skin and suede has been increasing, while the marketing of polyester taffeta, satin and chiffon will shrink slightly than before. In conclusion, the production enthusiasm of the weaving enterprise is not high and the operating rate of the water-jet and air-jet looms is in around 70-80%.

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.