It has arrived in mid-to-late August, and it is reasonable to say that the market situation should start to pick up. Through research and interviews, it seems that there has been no movement so far, and the start-up rate continues to fall. This is really disappointing to the textile bosses.
Recently, repeated high-temperature days have forced textile bosses to slow down their startups or even shut them down for holidays. But rather than saying that they have to, it is better to say that textile bosses take advantage of the high-temperature days to repair and maintain production without orders. Do you think it is a loss? deficit?
“We don’t have a factory, but the operating rates of the factories we cooperate with are not very high,” said Mr. Niu, a trader.
“High temperature factors add up to poor market conditions, and our operating rate is around 60%.” said Mr. Xu, who specializes in home textile fabrics.
“We don’t have a factory, but I heard that the factory’s operating capacity is low, about 50%,” said Mr. Hong, who specializes in outdoor sports fabrics.
“Our current factory operation rate is 85%-95%.” Mr. Ji, who mainly sells elastic fabrics, said.
Among the above four textile bosses, only one has a high startup rate. The rest said that the current startup rate remains at around 50-60%. It is obvious that most manufacturers are currently in a low startup state.
High temperature is an excuse, lack of orders is the truth
According to the operating rate of sample enterprises monitored by Silkdu.com, the current operating rate in Jiangsu and Zhejiang is only 57.2%. Although the data shows that it is still above 50%, in fact, a large number of factories are currently not even half of the operating rate. 3-40%. Compared with previous years, the operating rate in the same period in 2019 was around 80%. The epidemic has not yet arrived in 2019. Although the market conditions are not good, the operating rate remains high. After the outbreak of the epidemic in 2020, the operating rate in the same period has also been able to increase. Maintaining around 70%, after all, the market has reached the transition point between the off-peak and peak seasons at the end of August, and the operating rate has been slowly picking up. This year’s operating rate is very abnormal, and part of the reason is also affected by high temperatures.
But in fact, textile bosses are on holiday mostly due to reduced orders, and they take advantage of high-temperature weather to stop production to reduce inventory pressure.
“Our orders are not very good, but they are slightly better than in July. The price of fabrics is 10% lower than the same period last year, and there are no hot-selling products. Recently, we have received several orders for autumn and winter fabrics, but they are not large, with the volume of several thousand meters. I haven’t gotten up yet,” said Mr. Niu, the trader.
“Currently there are fewer orders. Compared with the previous period, the order reduction is obvious. There are no hot-selling products, and the overall market feels relatively weak.” said Mr. Xu, who specializes in home textile fabrics.
“The current order situation is average, basically the same as the previous period. There are no hot-selling products at the moment.” Mr. Ji, who is mainly engaged in elastic fabrics, said.
“Our orders are quite good. They have increased in the early stage. The price of fabrics changes with the gray fabrics. This year it has increased by almost 2%, which is not much. What we have done recently is high-elastic fabric lamination, with orders ranging from a few thousand meters to tens of thousands. Rice is available. Autumn and winter fabrics should be better.” Mr. Hong, who specializes in outdoor sports fabrics, said.
Similarly to the startup rate situation above, only one textile boss said that the order situation was good, and the fabric price increased by 2%, and the textile boss was a trader, and the trader did not have inventory risks, so the textile boss faced Less stress than a weaver. But the actual situation seems that the current market is still lacking orders, because this time period is the time for autumn and winter orders to be issued, but according to the current situation, they are not issued as scheduled as in previous years.
The proofing situation is average, no hope for the second half of the year?
“The number of prototypes in the market has increased, and the number of prototypes has increased by 30%-50%;”
“The proofing situation is average, with no changes from the previous period.”
“The situation of proofing is average and has decreased compared with the previous period, because we were doing proofing before and now we have started to place orders.”
“There is an appropriate increase in proofing, but it is less than the same period in previous years.”
Two of the above four textile bosses said that the sampling situation has increased compared with the previous period, but the actual situation is not as high as the same period in previous years. The other two said that the sampling situation is average, with no change compared with the previous period, or even a decrease. It can be seen that the proofing situation this year is indeed not as good as in previous years. Even if it increases, it is not as much as in previous years. The proofing situation indirectly reflects the market order situation in the second half of the year. After all, proofing does not mean that all orders can be placed, but proofing shows that there will be some demand. The order is placed. If this situation develops, it will be difficult for the market to pick up in the second half of the year, and it will be difficult for even the Gold 9 and Silver 10 to arrive as scheduled.
Textile bosses’ expectations for the second half of the year. At least 75% of textile bosses believe that the market situation in the second half of the year is worrying. Indeed, according to the current situation,Judging from the current situation, there are no signs that the market will improve in the second half of the year, and most textile bosses believe that the market will be better in the second half of the year than in the first half. The first half of this year was already extremely bad due to the epidemic, so it will be worse in the second half of the year. It won’t be any worse than the first half.
Overall, assuming that all current samples can be turned into orders, there is still hope for the second half of the year for the Gold, Nine and Silver Ten.
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