Looking forward to looking forward to it, September is finally ushering in the traditional peak season!
“The market is moving a bit!”
“The factories have been in operation recently, and the gray fabrics are ready to go!”
There have been a lot of rumors about the market conditions recently, but whether September will be prosperous or not depends on what downstream weaving companies say.
01Differentiation of order receiving situations
According to Silkdu.com’s survey this week and feedback from downstream weaving companies, the current market situation is very polarized. Category 1 companies are still facing insufficient fabric orders, which has not changed since September, and is no different from August. For another type of enterprise, orders have been scheduled to October and early November, and the number of orders has significantly increased compared with early August.
Mr. Yang, a trader, said: “Orders are not good now. They are basically the same as in the previous period. The order volume has hardly increased, and the autumn and winter fabrics have not been shipped.”
Mr. Zhu, who specializes in jacquard products, also said: “The current orders are similar to those in early August. Recently, the volume of autumn and winter fabrics has improved slightly, a little more than in August.”
The current order situation is good, with more orders than in the previous period, ranging from tens to hundreds of thousands of meters. Autumn and winter fabrics are pretty good, better than at the beginning of the month. Manager Zhang of the factory that produces T400, cationic fabrics, plaid fabrics, hole-in-the-wall fabrics and other gray fabrics said.
Mr. Cui, who mainly sells pongee and T800, also told the editor that the current order volume has increased and has been scheduled to early November. Polyester pongee and T800 are mainly used to produce autumn and winter clothing, so the number of orders has increased recently.
02Limited improvement in weaving operation rate
Judging from the operating rate, there has indeed been a rebound, but in fact the rebound in the operating rate is not entirely due to the rebound in orders. It is more due to the fact that many factories in August had to suspend production due to high temperatures and poor market conditions. Because of the arrival of September, Production enthusiasm has picked up slightly in preparation for the peak season. According to the data monitoring of sample companies by Silkdu.com, the current operating rate of Shengze looms has rebounded to 64.2%, an increase of 3.8% from last week. The month-on-month increase is not very large, which shows that it is still limited by the scarcity of orders and the operating load is difficult to significantly increase. The current mentality of the company is still cautiously optimistic.
Mr. Yang, a trader, believes that the two levels of market differentiation are relatively obvious. Good companies have already started placing orders in August, while bad companies will have a harder time in the future and there will be less follow-up. The market situation has not improved much. There are orders in the market, but hot-selling fabrics are still not available.
Mr. Zhu, who produces jacquards, said. Manager Zhang of the gray fabric factory that produces T400, cationic fabrics, plaid fabrics, hole-in-the-wall fabrics and other gray fabrics said: “The market has improved now and has started to take off. Functional fabrics are selling well.”
03The printing and dyeing factory has a poor atmosphere when accepting orders.
Dyeing factories are the best indicator of market conditions, and changes in the quantity of gray fabrics entering their warehouses can well reflect changes in orders. However, according to feedback from dyeing factories and fabric traders, the current change in the number of warehouses entered by printing and dyeing factories is not obvious, and it can even be said that the market is still on the weak side.
Feedback from traders and dyeing factories: “The dyeing factories are still not busy now, and there is not much work. Basically, the blanks can be done immediately after being pulled in, without queuing up.”
“Recently, the quantity of gray fabrics coming into the dyeing factory has not increased, and shipments are also very fast. The delivery time for our large orders is only 10 days, which is very fast.”
The delivery time of the printing and dyeing factory is only four or five days, which shows that the number of orders placed is really small, and there is no sense of the peak season atmosphere in September at all. Gray fabric companies feel a bit of a peak season atmosphere. This further shows that most of the gray fabrics are stocked by gray fabric traders, and substantial orders are still lacking in large quantities.
04The market outlook is unclear
It is the beginning of September, which can be said to be a relatively sensitive stage. Whether the “Golden Nine and Silver Ten” can come requires some clues from the current situation. Therefore, there are different voices in the market regarding the prediction of the market outlook.
Mr. Yang, a trader, said with a pessimistic attitude: “The second half of the year is not going to be good. There is no business for downstream garment factories and they don’t place orders, so it’s very difficult.”
“The market situation in the second half of the year is not good, and the international influence is huge. For gold, September and silver, we will still maintain a wait-and-see attitude.” Mr. Zhu is also more cautious.
Since Mr. Zhang currently has many orders on hand, he also has optimistic expectations for the second half of the year. He believes that the market will improve in the second half of the year, but it still depends on the specific situation.
Because this year’s market conditions have deviated somewhat from previous years due to the severe impact of the epidemic, historical reference may not be of much significance. At the same time, the uncertainty factors are relatively large, which makes the entire market adopt a cautious attitude. They dare not make bold speculations about the market outlook and maintain a wait-and-see attitude.
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