Just yesterday (July 11), the curtain of this year’s summer officially started. Last week, the World Meteorological Organization also announced the formation of El Niño conditions, which means that the probability of frequent extreme high temperatures and other destructive climate events around the world has further increased.
How to deal with the “baked” experience of extreme high temperatures will become a difficult problem facing global economic growth in the coming period.
Orders fall, inventories rise
Recently, many areas have experienced high temperatures reaching nearly 40°C, which is a difficult test for workers in the textile industry. For the safety and health of workers, according to previous years, many factories will also take holidays during high temperatures.
However, the high temperature weather is only a trigger for giving employees a holiday. More importantly, it is also a holiday for one’s own gray fabric inventory. Currently, under the influence of the off-season, there is a serious lack of orders, the delivery speed of regular gray fabrics has slowed down, and the inventory of weaving factories is constantly increasing. rising.
According to data monitoring from Silkdu.com, the current inventory of gray fabrics in the factory has risen to 36 days in the year, reaching the highest point in the year. And this does not include the spot inventory that has flowed into the market.
Judging from the editor’s visit to the market, the boss responded: “Now the orders on hand have basically been completed. Customers called to report problems. There are a few orders but only a few kilometers. It is considered to maintain customers and wait for repeat orders.” ”
Judging from the most mainland gallbladder products, as involution among textile companies has become a daily routine, it is now the off-season, goods cannot move, and prices cannot go up. The start-up rate has been reduced by the end of June. . “Now, the heat is coming again.
Can’t turn on the loom?
At this time, whether the operating rate will rise or not has become a question that requires careful consideration. At present, there is no obvious decline in the operating rate in the market, and most manufacturers still maintain the original operating rate.
However, due to high temperature weather, power outages in residential areas have become very rare, although with the development of domestic power infrastructure becoming more and more complete, and with the priority given to ensuring residents’ electricity consumption.
Summer is still the peak time for electricity consumption, and as the country’s economic development requires more and more electricity, it will still have a certain impact on the production of enterprises.
However, when the inventory is too high and the operating rate of looms is already at a low level, suspending operations for a few days due to power shortages plays into the hands of textile companies to some extent.
However, in the off-season, there are also factories where the looms are still running at full capacity and there is no time to ship goods.
The boss of a company that specializes in spot trade told the editor: “The operating rate of the cooperative factories is still 100%. Most of them supply gray fabrics to spot dealers, so they are quite busy.”
The spot model has become the mainstream in the market from an emerging industry in the past. The company interviewed by the editor also has an order business, but now the spot business is better than the order business.
However, this also leads to another problem. It seems that the weaving factory is very busy and has been shipping goods. In fact, these gray fabrics are stuck at the final shipment stage, and the cloth is all stored at the spot owner.
This is why, as mentioned above, the inventory on the market is far more than the counted amount, and terminal clothing companies have subtly transferred fabric inventory to the textile market.
However, the two-level differentiation of the textile industry is very serious at this stage. For textile companies that produce conventional products, the market has overcapacity, serious involution, and generally have high inventory, which itself is reducing the operating rate and struggling to survive. High temperatures It just becomes another reason to reduce capacity.
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