Most of May has passed. There have been no obvious signs of overseas transfer orders in May and June, and the entire textile market is still tepid. After more than a month of continuous decline, the weaving operating rate will most likely continue to weaken. Although the domestic epidemic has long been controlled and the economic environment is much better than last year, the overseas epidemic situation is no different from last year, and even worse in some countries and regions. Under this circumstance, domestic textile foreign trade was deeply hit. In the traditional peak season of March and April, the market performance was not satisfactory, and the subsequent off-season market was even more panicky.
Orders reduce, manufacturers clearly mark prices and sell goods
According to the person in charge of a textile company, their order volume so far this year has dropped by 30% compared to last year during the epidemic. It seems that the economy is improving, and orders are increasing. Increase, but in fact the situation of many textile companies is not much better than last year. During the market visit, many companies also had a serious lack of confidence in the subsequent market. When the price of raw materials is reduced and promoted, the most intuitive manifestation is their unwillingness to buy and hoard.
Last year, the market was not good, orders were reduced, and it was very common for companies to run into difficulties. Most companies also encountered financial problems, especially weaving companies, which had a large amount of gray fabrics. Inventory takes up funds. In the second half of the year, in order for the company to operate normally, various ways of obtaining funds are available. Some companies directly transfer part of their factories and machinery, and some business owners mortgage or sell their houses. Of course, the most common method is to sell the fabrics in stock in the warehouse at low prices.
2021 is about to pass halfway, and the off-season atmosphere of the market is getting stronger. It is obviously unrealistic to count on the off-season that has not been cleared during the peak season. Many textile companies also understood this, so they began to decisively sell off warehouse stocks in advance.
Although the price of various fabrics increased by 10%-20% compared to last year due to the increase in raw material prices at the beginning of this year, the increase in raw materials was basically ignored when selling goods. Forget it, the prices of many fabrics sold are the same as last year. Take 75D high-twist chiffon as an example. Last year, the selling price was basically around 2.2-2.3 yuan/meter, and many of them were sold without tickets. However, there are currently companies on the market that are selling tickets at 2.1 yuan/meter. At this price, they must be losing money. But if the fabric can be turned into money in time, then the lower price is reasonable. However, in contrast to the sell-off in the market, many textile companies are rushing to purchase fabrics.
Millions of meters and tens of millions of meters of purchased fabrics emerge in endlessly
The market is often good or bad. It is difficult to make an absolute division, especially in the future market that has not yet arrived. Textile companies tend to infer future market trends based on early performance. The market is weak during this year’s peak season. Many textile people have no idea about the future market, so they sell goods. However, there are also many people in the corresponding market who will. Believing that the market will be booming in the second half of the year, these people began to hoard fabrics and raw materials in anticipation of price increases.
According to a gray fabric merchant, in the market he knows recently, many bosses are hoarding nylon fabrics in large quantities. The most important reason why they dare to take action is that they believe the market will improve in the second half of the year, and many nylon fabrics are often used in autumn and winter clothing. The market demand in the second half of the year is bound to be strong.
Under the epidemic last year, the market was lifeless throughout the first half of the year. However, the market suddenly turned after the “National Day” and orders were influx. Most of the year’s trade volume is created in the last few months. This year’s market is very similar. The market was mediocre in the first half of the year, and how much worse it could be in the second half of the year. Moreover, the foreign trade demand that has been backlogged for more than half a year is very likely to explode as the global vaccine is used and the epidemic is gradually controlled. So an upturn in the market in the second half of the year not only makes sense;
There are now selling and hoarding of goods in the market Each phenomenon has its own rationality. After all, there is still uncertainty about the market situation in the second half of the year. In addition, even if they know that the market will improve in the second half of the year, textile companies still have to have funds to survive the current off-season, so they sell��It is inevitable. Textile demand will not disappear out of thin air, but will only shift and be delayed. If overseas demand is not good in the first half of the year, there will inevitably be a breakthrough point in the second half of the year.
</p
