Two days ago, the editor discovered an abnormal phenomenon during the visit. A weaving company revealed that in late November, the company’s order volume showed a gradual recovery trend. Compared with the beginning of the month, the order volume has improved significantly, which is a bit “flattered”! After all, looking at the entire market, most companies have given up resistance and simply “lay down” waiting for the holiday to arrive.
There is a reason for this, the cold wave is expected to bring about a pick-up in orders
Since November, the textile market has been unable to hide its weakness, with news such as “gray fabric prices plunging” and “corporate holidays expected to be ahead of schedule” emerging one after another. For enterprises, this November is so cold that even “Double Eleven” failed to bring much enthusiasm to the market!
Towards the end of the month, a certain weaving company lamented that as a fabric company that “depends on the weather,” the abnormal temperature hovering around 20 degrees Celsius has made fabric sales miserable. In the past, although “small profits” were made, “high sales” can make up for the lack of profits. Looking back at the current situation of the enterprise, in the face of the continuous “shrinking” of order volume, in order to maintain the necessary capital turnover, even if it is “refunding at a loss”, the cloth in hand must be sold!
Just when it was about to “lay down and rot”, the company was pleasantly surprised to find that as the cold wave level continued to increase, the sales of down jackets were on the agenda, resulting in the sales of gallbladder cloth gradually becoming hotter. As the order volume continues to increase and raw material prices continue to fall, the loss situation can be effectively alleviated. Although expectations of cold winters have boosted the market in previous years, this is the first time the feeling has been so strong.
It can be seen from the above enterprise feedback that the textile and clothing industry is a highly seasonal industry, and clothing sales are closely related to the temperature of the season. Every occurrence of a huge temperature difference will directly trigger consumers’ enthusiasm for purchasing the clothing they need, thereby indirectly driving a recovery in fabric market sales.
The operating rate drops again and again. Can the final madness continue?
With the arrival of the cold wave, cold winter is expected to “come back” again. For fabric companies, can this situation continue?
According to monitoring data from Silkdu.com, as of November 29, the operating rate of weaving enterprises in Jiangsu and Zhejiang in the sample has dropped to 60%. Compared with previous years, this value has become a record low. Due to the lack of orders from weaving companies and declining production enthusiasm, many companies have planned to suspend production and take holidays at the end of the month or early next month.
Therefore, the 60% operating rate does not seem to be the end point. As holiday expectations are gradually implemented, historical lows may continue to be refreshed.
A weaving company that specializes in polyester taffeta said that in previous years, the company basically maintained a year-round holiday, but this year it is likely to implement annual leave, and the holiday may be at the end of December. After communicating with peers, I found that in the past, the workers in the weaving factory basically worked on the same shift. Now three shifts are the mainstream trend in the market, and some have even begun to arrange four shifts. This change will directly lead to a reduction in workers’ wage income, after all, workers’ wages and working hours are directly linked. Looking at the gradually decreasing wage income and the rising cost of living, many workers said that their current income is almost the same as that of returning to their hometowns for employment. Affected by this, enterprises began to face the loss of labor, which would eventually directly lead to the infarction of enterprise production.
The continuous decline in operating rates not only reflects weak terminal demand, but also reflects the difficulties in corporate operations. In the absence of long-term positive stimulation, stopped machines and lost skilled workers will become stumbling blocks on the road to recovery.
Postscript:
Under the influence of this cold wave, the textile industry that “depends on the weather” may usher in a wave of good production and sales. But it is unknown how long this wave of good news will last. I believe that most textile people hope that this wave of cold wave will truly solidify the expectations of a cold winter and make the textile market that has been dormant for a long time “surging”!
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