This company’s orders are already lined up until November! The editor recently learned that this company, which mainly develops fabrics, is so busy that the machines are running at full speed and there is no time to do it! Nowadays, as the peak season deepens, many companies say that the number of orders is much better than before, but does it mean that the market has fully improved and got out of the supply and demand cycle?
There are no signs of improvement in foreign trade, and small orders in domestic trade are frequent
In the textile industry, foreign trade has always accounted for a large proportion. A large part of the reason why the textile market has been cold in the first half of this year is because of the weakening demand for foreign trade. Although overseas countries have basically relaxed travel restrictions, the economy has also begun to slow down. Slow recovery. But “foreign trade orders have not improved” is the unanimous answer of almost all the companies surveyed.
The poor foreign trade market is partly caused by overseas orders flying to the southeast. In the first half of the year, almost all foreign trade companies encountered orders being snatched away by Southeast Asia. Recently, the situation in Vietnam seems to have begun to go downhill. Vietnam Textile The industry’s industrial chain and the quality of its workers are too restrictive to allow it to become the world’s factory, so this part of the order may return.
On the other hand, the global economic recovery will take time. Europe is currently experiencing an energy crisis, and the demand for textiles and clothing has therefore become weaker. In addition, the pace of life and production in some foreign countries is relatively slow, making it difficult to resume production and work. It may take longer. This also invisibly resulted in textile foreign trade orders not being transmitted to the fabric end in a timely manner.
Although there are not many bright spots in the domestic trade market recently, small orders do appear frequently. As the peak season deepens and Double Eleven approaches, the signs of loosening in the domestic trade market have become very obvious. In addition, several major textile clusters have gradually recovered from the impact of the epidemic. recovery. Domestic trade orders may explode across the board.
The operating rate is polarized, and gray cloth inventory remains high
Due to the sudden epidemic in the first half of this year, the textile industry missed the peak season in the first half of the year. Because of this, the gray fabrics prepared by weaving companies in the early stage were shelved. Most companies have large inventories, and only a few determine production based on sales. Enterprise inventory quantities are under control. Insufficient quantity of gray fabrics has resulted in greater inventory pressure.
Although the inventory of gray fabrics is relatively high among all enterprises, the operating rate has shown a polarized situation. Some companies have reported that the operating rate is now basically full or above 80%, but some companies have said that they still dare not turn on the machine too much. Therefore, although the overall operating rate has increased, it is still at a low level overall.
In fact, the reason for this situation is the polarization of orders. According to the survey of sample companies, there is a clear distinction between companies with high startup rates and low startup rates. Companies with high startup rates are mostly customization or development companies. Since such companies have fewer competing products in the market, they have greater advantages when receiving orders.
The start-up rate of companies that produce conventional products is generally low. One reason is that the large expansion of production capacity a few years ago has caused oversupply of conventional products. Coupled with the lack of peak season this year, the inventory is getting higher and higher. Fortunately, most chemical fiber products Gray fabrics are easy to store and are suitable for long-term stacking. Therefore, reasonable production shutdowns, production reductions, and worker holidays will definitely reduce costs and reduce expenses.
Although the current market has entered the peak season, there are few large orders placed, and it is difficult to release a large amount of gray fabric inventory. Therefore, the market cannot be optimistic. Only when the market conditions really come, can the prices of gray fabrics and fabrics start to rise.
</p
