Recently, the textile market has been flooded with news about holidays for weaving factories, but I never expected that just after December, many printing and dyeing companies also issued news about holidays!
Printing and dyeing factories also started taking annual holidays
Some printing and dyeing companies will be on holiday from December until after the Spring Festival next year, while a small number of companies will be on holiday from November, and the resumption time is yet to be determined. But in general, most printing and dyeing factories have at least a two-month holiday. This can be said to be the longest and earliest Spring Festival holiday in history.
Looking back on the past, November and December every year are often the busiest finishing period for printing and dyeing factories. They are either busy rushing to deliver the final orders or busy preparing goods for next year. Although it is not to the point of liquidation, it is still quite busy. Especially for some market orders, the most popular one last year was the T400, which can produce dozens of cylinders in one night. But this year, it seems that there is no sound of market orders, and no fabric can monopolize dozens of cylinders. This year, many printing and dyeing factories have been deserted for a long time, waiting for work to be done. Such a huge contrast deeply reflects the difficult days of the printing and dyeing industry today.
Printing and dyeing companies are seriously short of orders and have insufficient startups
Anyone familiar with printing and dyeing factories knows that dyeing factories usually start the Spring Festival holiday on the 15th day of the first lunar month. They report on the eighth day of the new year and can basically resume normal production on the 15th day of the first lunar month. This set of holiday rules has become an industry standard. However, this year, due to the impact of the epidemic, the recession throughout the year caused many factories to be unable to make ends meet and eventually suspended operations. In addition, this year’s Spring Festival falls at the end of January, which means it comes earlier than in previous years.
Recently, the domestic epidemic has spread to many places again, disrupting some logistics, accelerating the already declining demand for clothing. Orders have fallen sharply, factories are not actively engaged in production, and local loads continue to weaken. At present, the printing and dyeing operation rate in Shengze area is 55%, down 1.8% from the beginning of November, but the year-on-year decrease reached 30%! The operating load of large printing and dyeing factories is mostly around 60%, while the operating load of medium-sized dyeing factories and printing, bleaching and dyeing plants is low at around 30%.
In addition to the low operating load, customers have seriously lowered prices this year, but costs are still rising. As a result, printing and dyeing companies operate with low profits and life is more difficult than in previous years. There are also some small and medium-sized printing and dyeing companies that are unable to continue due to lack of order support and insufficient funds. It is expected that they will be forced to take holidays early. According to data from the National Bureau of Statistics, from January to September 2022, the operating income of printing and dyeing enterprises above designated size was 229.639 billion yuan, a year-on-year increase of 8.07%, a decrease of 0.42 percentage points from January to August.
As the off-season of this special year approaches, not only printing and dyeing factories, but also textile and fabric companies are facing even more difficulties. Due to the epidemic in many places in the country, coupled with multiple negative factors such as poor Double Eleven consumption data, most clothing brands and home textile brands mainly consume finished product inventory. New orders are in a cautious wait-and-see state, and only scattered small orders have been placed. In terms of foreign trade, although some urgent needs are being placed one after another, due to issues such as the transfer of orders from Southeast Asia, the actual orders that can be placed are limited. Therefore, in the case of lack of orders, the inventories of weaving companies continue to rise, and cloth bosses are forced to suspend production and take holidays to release inventory pressure.
Recently, under the influence of the new virus, market panic has intensified, and the market outlook has become increasingly uncertain. The overseas epidemic situation is still serious, terminal consumption has been weak in recovery, the order volume of terminal customers is still lower than expected, stocking and urgent orders have declined, and early holidays are also spreading from downstream to upstream.
</p
