After the “Golden Nine and Silver Ten”, the situation of power cuts in some areas has eased compared with before, and the “one size fits all” phenomenon has been changed. However, for fabric companies, the subsequent impact caused by dual energy consumption control still brings considerable challenges to the company.
Under the “double carbon” goal, how will fabric companies break through and increase revenue and profits?
Easing of power cuts
In September this year, under the influence of energy shortage and energy consumption dual control policies, Zhejiang, Jiangsu, Guangdong, Fujian and other provinces have successively issued notices of power rationing, which has affected many textile companies to varying degrees.
However, just recently, the Fujian Provincial Department of Industry and Information Technology issued the “Notice on Suspension of Orderly Power Reduction.” The “Notice” shows that the orderly power rationing in Fujian Province has achieved phased results. Based on the recent actual power supply and demand in Fujian Province, it has been decided to suspend orderly power rationing in Fujian Province from November 1.
Following the cancellation of “power rationing” in Fujian, Zhejiang also followed suit and announced a “suspension of orderly power consumption.” On November 7, the Zhejiang Provincial Energy Bureau issued the “Notice on Measures to Suspension of Orderly Use of Electricity”. The “Notice” stated that based on the recent actual situation of power supply and demand, after research, it was decided to suspend orderly use of electricity in the province from November 8. electricity.
The situation of power rationing in Guangdong Province has also improved. “Through the joint efforts of all parties, the power supply situation in the province has been alleviated, and electricity consumption in Guangdong Province has been basically guaranteed since the National Day.” On the 10th and 26th, the relevant person in charge of the Electric Power Division of the Guangdong Provincial Energy Bureau said in an interview with the media that in various situations With the proactive measures taken, the situation of power restrictions in Guangdong is easing.
The person in charge of a fabric company in Foshan City revealed that the company began to be affected by power cuts at the end of September. Due to requirements such as “working on three days off and four days off” and “working on two days off and taking five days off”, it was difficult to complete some orders. . “During that time, we could only ensure supply to high-quality customers, and orders from other customers could only be relatively suspended. Now that the power shortage situation has improved, our operating conditions have also improved.”
“Although the power restriction situation has improved now, overall, the intensity and scope of peak staggered production restrictions in various provinces this year are larger and more stringent than in previous years. The impact of dual energy consumption controls on the production of fabric companies may continue until the end of the year .” An industry insider said in an interview with reporters.
Pressure to improve the situation still exists
“Power restrictions and production restrictions” have caught the entire textile industry chain off guard, with reduced production capacity and lower raw material prices. Increases, shortages and other phenomena are reflected from the raw material end to the demand end. Entering November, although some conditions have improved, the textile market seems to be in a more tangled state than in October.
Recently, the prices of textile commodities have fluctuated. Fluctuations in raw material prices are being transmitted downwards. Recently, polyester factories have launched two sales promotions in succession. In just 4 days, the quotations of some products of the polyester factory have been significantly reduced by 500 yuan/ton.
On November 4, international oil prices fell significantly, further lowering the quotations of various products in the polyester industry chain. As of the close of the day, the main contract of WTI crude oil futures closed at US$80.86/barrel, a decrease of 3.63%; the main contract of Brent crude oil futures closed at US$81.99/barrel, a decrease of 3.22%.
“Although there is a correction in raw material prices now, they are still at a high level.” The person in charge of a fabric company in Shaoxing, Zhejiang, who did not want to be named, said frankly that due to the impact of the epidemic in the first half of the year and power rationing in the second half of the year , the prices of some raw materials have doubled, especially in foreign trade business. Coupled with the rising logistics costs, fabric prices must be increased by more than 20% to ensure no losses. “However, many customers find it difficult to accept this. Now the company’s product prices have also been raised, but it is far from enough to offset the increase in production costs. We have given up on some orders.” The person in charge said bluntly.
The company’s current situation is not unique. Many fabric companies have reported that the current business is not easy and the production costs are too high. Downstream, the price of raw materials continues to fall and the scale of bargaining is getting larger and larger, resulting in less and less profits for fabric companies. In addition, in the later period, the cost of raw materials and dyeing is increasing. The price is difficult to grasp, and the production cycle of the fabric is also difficult to grasp. As the inventory of raw materials gradually decreases, the order delivery problem of fabric companies is becoming increasingly serious.
“Hidden” opportunities amidst the pain of transformation
Although the current combination of various unfavorable factors has put a lot of pressure on enterprises, many fabrics Enterprises also said that in the medium to long term, the realization of the “dual control” and “dual carbon” goals will be a rare opportunity for enterprises and even the entire industry.
“It is undeniable that we are currently facing various challenges, but this is the pain that must be experienced in industrial transformation. In line with the fashion, technology, and green development trends of my country’s textile and apparel industry, the current development of the fabric industry Opportunities actually outweigh difficulties. As long as the digital development and green development of the industry are truly realized, the green supply chain constructed will have great market advantages.” Wang Zongwen, managing director of Guangzhou Qianjin Denim Co., Ltd. said that Qianjin Denim has started The zero-carbon action in the denim industry chain promotes the green upgrading of the industry, and has started informatization upgrades since 2000. Currently, Advance Denim is cooperating with Italian companies to develop 3D denim, striving to create virtual presentations and sales in the form of digital humans. “In the future, we will further promote the reduction of enterprise inventory and the improvement of development efficiency through the implementation of ‘manufacturing + digitalization’.”
Zhejiang Fantasia TextileFu Guangyi, chairman of the company, also has a similar view: “Currently, new opportunities are coming. The global textile industry chain is undergoing profound adjustments. Under the impact of the epidemic, international demand continues to pick up and some orders have returned. How to save energy and reduce emissions in the country? Seizing opportunities in the context of the continuous advancement of policies is a question worth pondering for every company.” He said that although there are currently many orders returning, it can be found that low-end fabric orders are still shifting outwards. Fabric companies should adhere to the guidance of mid-to-high-end consumption and actively promote new technologies and the green transformation of products to gain more market share.
Lin Ping, chairman of Dali Silk (Zhejiang) Co., Ltd., believes that photovoltaic power generation is one of the effective solutions to alleviate the impact of dual-control power rationing. The company has a photovoltaic power station with a power generation capacity of up to 35,000 megawatts, which can meet the production and processing requirements of the front-end printing and dyeing process, so the power limit will have little impact on the company. He introduced: “Photovoltaic power generation can effectively alleviate the impact of power restrictions and even achieve self-sufficiency needs, effectively coping with the chain effects caused by power restrictions and production reductions from the root. In addition, textile fabric companies usually face large power consumption, Due to high electricity prices and other issues, installing photovoltaic power stations can also save electricity bills, reduce costs and increase efficiency.”
“Opportunities only favor those who are prepared.” Sun Ruizhe, president of the China Textile and Apparel Federation, pointed out that currently, Enterprises should make the promotion of green environmental protection concepts the top priority of enterprise development, and put expansion of production scale second; they should innovate green and low-carbon technologies, build intelligent and digital green factories, and make greater contributions to the sustainable development of society. contribute. </p
