Recently, overseas epidemics have intensified, containers are hard to find, shipping costs have skyrocketed, and bulk commodities have “drifted”… Such news has all affected the hearts of textile people. The market has also been slightly depressed due to the end of the peak season, but some people have said that the market has improved slightly recently. In order to gain a deeper understanding of the market situation, Silkdu.com conducted a market survey.
Market demand has weakened, and the operating rate of weaving companies has declined slightly
This week, water-jet looms and dyeing plants have limited production in some areas, but in Under normal market conditions, the range of companies involved is small, and many companies’ original operating rates are only 70-80%, so there is almost no change for many companies. In fact, what affects the operating rate is market demand. After entering May, the transaction volume of gray fabrics has been sluggish, followed by a decline in the operating rate and an increase in gray fabric inventory.
Mr. Li, who specializes in four-sided bombs, said: “The current operating rate in the factory is 85%. This week The water-jet loom has an impact on us when it is turned on and off, but it is very small. The operating rate in April was 90%. In May, the delivery of gray fabrics slowed down, so the operating rate was slightly adjusted back. The machine itself was not fully turned on, so it was turned on and off. Naturally, the impact will not be significant.”
There are also some companies that have reduced shipments, but have not reduced their operating rates. Mr. Wang from a domestic sales company said that the machines have been running at full capacity recently. Except for some old machines that often break down and cause shutdowns, the machines are running at full capacity under normal circumstances. Although inventories are rising day by day, it is not yet the real off-season, and it is not yet the time to start construction.
The sales of elastic fabrics are still rising
In May, weaving companies have slowed down their shipments, and trading companies have gradually reduced the number of orders they received, resulting in a slight weakness in the overall market. However, elastic fabrics that have been hot since March, such as four-way elastic, high-elastic, T400, T800 and other fabrics, have still been hotly traded recently. The number of orders has decreased compared with the previous month, but there is no obvious downward trend. Dyeing factories also still focus on elastic fabrics, becoming the main force in production.
“Compared with other fabrics, elastic fabrics have always been very good. Recently, they feel a bit weak. We now have more than 100,000 meters of elastic fabrics on hand, and there are no big orders to follow for the time being.” Domestic sales Mr. Wang of the enterprise said. Trader Manager Yang also said: “In March and April, we received a total of 30,000 to 400,000 meters of four-sided bombs. Now we only have orders for 10,000 meters of four-sided bombs. It is true that the quantity is decreasing, but customers say they will continue to place orders. .”
Nissan has become a “rising star”
In addition, through research, we found that there are still bright products in the market. For example, Nisi, which has been forgotten by the market for a long time, suddenly successfully counterattacked and became the leading brand in the market. “Rising Star”. Manager Wang, who specializes in nylon products, revealed, “Recently, the sales of nylon spinning have been good, and there is basically no inventory. The two most popular specifications, 380T and 400T, must be booked in advance.”
Domestic sales company Mr. Wang also said: “Our company mainly produces nylon, pongee, imitation memory, T400, etc. Among them, the sales volume of nylon fabrics is not bad. Many traders predict that the market will be better in the second half of the year and winter clothing fabrics will be hot-selling, so they have been stocking up recently.”
The foreign trade industry has been repeatedly hindered, and the order intake is weak
The foreign trade industry has once again been hit by the intensification of overseas epidemics, difficulty in finding containers, and skyrocketing sea freight. For textile companies that export directly, it is very difficult to find containers and skyrocketing freight costs. Not only do costs soar, but it is also difficult to ensure on-time delivery. Mr. Yang, who is also engaged in foreign trade, told the editor that not only have freight rates increased a lot recently, but more importantly, the terminals are very crowded. When we enter the warehouse and arrive in Shanghai, the drivers have to queue up to unload the goods, which is very time-consuming. When the goods arrive at the customer’s side, the dock is also crowded. It takes a lot of time to queue up to get the goods. Therefore, the goods are shipped earlier than before, which means that the production delivery time is shortened. The time is very tight and it is very challenging. !
Foreign trade companies that export indirectly, on the surface The impact is not big. Most of the fabrics are sent to domestic garment factories and the garments are re-exported, so they do not feel the pressure obviously. However, the unstable factors in the foreign trade industry have always suppressed the demand of the entire textile industry. The impact on all foreign trade companies is that order acceptance is still poor and has not returned to pre-epidemic levels. Manager Wang, who specializes in nylon products, said: “Our foreign orders are all indirect exports, and the foreign trade orders received from customers are also average, so there are not many orders given to us. Overall, they are not as good as in normal years. In fact, domestic sales are also unacceptable. If there is little impact, most garments will eventually be exported. If foreign demand is not good, domestic demand will naturally not improve much.” Indeed, in terms of terminal demand, overseas demand is far greater than domestic demand. In 2020, China’s cumulative export volume of textile and clothing reached 291.21 billion U.S. dollars, which is a very large amount. Therefore, overseas textile demand determines the domestic market in the second half of the year.We are also making arrangements for production and operations in the second half of the year.
The off-season is gradually approaching, and the stamina is slightly lacking
However, the early cooling of the market has made the cloth bosses lack some confidence in the future. Most people believe that it is difficult to improve and the off-season will deepen. “May is almost over, and it looks like it won’t get better. It’s getting hotter soon, and the market is getting worse.” said Mr. Wang of a domestic sales company. “The market is definitely gradually weakening. Now the market orders are also decreasing. The overall demand will further weaken and the overall demand is insufficient.” said Mr. Li, who specializes in four-sided bombs. “As the weather gets hotter and hotter, the demand will definitely decrease, and the price will not be high and will gradually decrease.” Manager Wang, who specializes in nylon products, agrees.
Although the market outlook is not optimistic, it is reasonable. With the hot weather, the traditional off-season of July and August will soon enter. It seems to be a stage that the textile industry goes through every year and has long been accustomed to it. If the market improves during the traditional off-season, it will be an abnormal market. But in the face of the off-season, textile companies should still face it positively. The most painful and darkest moment has passed. What else can defeat textile people?
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