The market situation has been relatively weak recently. I want to write something, but I don’t know what to write. I asked the familiar Boss Bu on WeChat. I asked A if he traveled to Tibet or by self-driving. I asked B if he traveled to Qinghai and flew there…
Looking at the circle of friends, my friend, a group of textile people are posting photos of going out to play, and because the weather is too hot and they can’t go abroad because of the epidemic, they all run to places with higher altitudes. The editor is shocked to see Want to go.
Why do so many textile people gather to travel at this time?
The textile market has a strong seasonal cycle. By this month, the spring and summer fabrics are almost ready. It is too early to prepare autumn and winter fabrics. Therefore, July and August every year are the off-season for the market, especially It is the time at the beginning of the 7 month, which is often the time when the market is at its weakest within a year. Many times, you can go around the market for a long time without seeing a single order.
After so many years, cloth bosses have also summed up their experience. Anyway, the market during this period is just like this. Factories only need to go about their work normally, and it is difficult for traders to receive anything of value. Orders, might as well run out and travel.
Just in time, the first half of this year has been very hard for textile workers. Especially the epidemic in April and May was the most serious in China since the outbreak just started at the beginning of 2020. It is precisely this kind of epidemic that has made textile people miserable. The finished products cannot be shipped out. The customers we were originally talking about cannot place orders because they are afraid of the impact of the epidemic. In some places, normal production has also been affected, and in places where production has not been affected, production has not been affected. It may be that a large amount of inventory has accumulated because orders cannot be placed. Although the government later actively organized enterprises to resume work and production, the impact of the epidemic on the textile market has already been caused.
PS: Speaking of the epidemic, epidemics have occurred in sporadic areas in China now. Textile workers must take epidemic prevention measures even when traveling
Coupled with the impact of international oil prices, which suddenly rose to an incomprehensible level, the raw materials increased accordingly, but the price of the final finished cloth was unlikely to rise. It was basically impossible to make any money taking orders. Sometimes You may still lose money. If you don’t take it, the sunk costs of rent, labor, water, electricity, and interest will just be there, and you will still lose money. If you can’t make any money anyway, it’s equivalent to working in vain for those “rich locals”, which makes the already poor life of textile enterprises even worse.
So after being so tired in the first half of the year, it is indeed a good choice to go on a trip to relax.
What would you do if you weren’t traveling?
And if you don’t travel now, there really isn’t much to do. Since there aren’t many new orders in the market and the international economic situation is declining, everyone is not very confident in the second half of the year. As a result, textile companies are currently struggling. The enthusiasm for stocking up is not very high.
As far as the editor has learned, many textile companies have begun to reduce production capacity in various ways, and the overall loom operating rate in Jiangsu and Zhejiang has been less than 5%.
But even so, gray fabric inventories are still on the rise. Today’s gray fabric inventory seems to be smaller than in the previous two years, but this year’s economic situation can clearly feel that it is worse than in previous years.
As a result, there are fewer downstream orders, and dyeing factories cannot receive a lot of work. The average operating rate of dyeing factories is currently less than 50%.
With the market situation like this, what else can we do if we don’t go out for a trip to change our mood?
No matter what, going out for fun is a joyful thing. I hope textile workers can relax and adjust their mentality to cope with more challenges in the second half of the year.
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