The editor recently visited and researched the textile market. Passing by the logistics center, I found that there were a lot of people there. There was no busy loading, unloading, or shipping. There were almost no big trucks or forklifts. The textile market in March did not seem to be as good as expected.
Looking back after this year’s Spring Festival, the market’s logistics center has just started construction. Forklifts and trucks loading and unloading goods shuttle back and forth, and there is a lot of traffic. It is so lively! It’s really in stark contrast to today’s situation.
A few days ago, many public articles appeared on the Internet describing the shrinkage of gray fabrics in printing and dyeing factories. The weather vane of the textile industry also revealed that the market is gradually weakening. So, is the “Golden Three” really no longer “golden”?
Market orders come and go
The textile market after the New Year has shown several obvious characteristics: rising raw material prices, hot sales of fabrics, outflows of gray fabrics in dyeing factories, and congestion in dyeing factories. In fact, these statuses are all related to “market orders” to a certain extent.
First of all, there was a backlog of unfinished orders before the Spring Festival holiday. After the printing and dyeing factories started working, they rushed into the factories to arrange production. Subsequently, stimulated by the price increase of gray fabrics, single customers in the market with the ability to hoard gray fabrics entered the market in large numbers and quickly snapped up the low-priced gray fabrics from years ago. Then they sent all the gray fabrics that had nowhere to put them into the dyeing factory warehouse, and then these huge orders were crowded in various production links of the dyeing factory.
However, such orders come and go quickly. Although the market sentiment has recovered, the extent is limited, and the stocking capacity of market orders and spot companies is also limited. According to a trader, the market they are working in is very time-sensitive. They can basically get the color samples on the same day, and the production in the workshop is basically all cylinders and machines. The 2 million 100D four-sided bombs we recently made were shipped two trucks hundreds of thousands of meters within three days. It can be seen that the production speed of market orders is still very fast.
The market is in the preparation stage
Although it is already early March, the much-anticipated “Golden Three” has not fully arrived. It can be said that it is currently in the early preparation stage. The overall textile market has generally high expectations for the peak season, so it is currently preparing for its arrival, mainly focusing on the weaving and gray cloth ends. Weaving manufacturers are increasing their operating rates, increasing gray fabric production, and preparing sufficient gray fabric inventory for the peak season.
The person in charge of a large nylon gray fabric manufacturer said: “At present, we are relatively optimistic about the future market. The inventory in the factory is also small, so we are mainly stocking up. We judge that domestic sales will improve in mid-March, and foreign trade will be issued in April.”
The weaving operation rate in various parts of Jiangsu and Zhejiang quickly rebounded to a high level after the year. The weaving operation rate in Shengze is currently above 70%. According to data monitoring from Silkdu.com, the operating rate of water-jet and air-jet weaving enterprises in Shengze area is 75.6%. It can also be seen from the figure below that the current operating rate is higher than the level of the same period last year and has reached the level of the same period in 2020. And recently, the operating rates of various textile clusters in Jiangsu and Zhejiang regions have begun to rebound significantly.
Is it because orders have been placed to the weaving end because terminal demand has improved? This is not the case. The current correction in the weaving operating rate is mainly due to the optimistic prediction of the overall market situation this year. More of them are stocking up for the “Gold, Three, Silver and Four”, as well as stocking up and stocking up for the peak season in the second half of the year, in preparation for the autumn and winter markets.
Postscript
The current market is mainly focused on the production and storage of gray fabrics. Such a busy scene will naturally not appear in the logistics center. It is reasonable for the shrinkage of gray fabrics in printing and dyeing factories. Regarding the market situation of “Gold, Three, Silver and Four”, most textile people are relatively optimistic, so they are actively preparing for the war. The epidemic has just passed, and the demand for textile orders that has been backlogged for three years will also explode. It is reasonable to make preparations in advance for the upcoming peak season.
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