Recently, public health incidents have continued to ferment and logistics in various places have been partially disrupted. This has had a certain impact on the textile industry, but the most important thing is a setback in confidence.
Weaving operation rate dropped significantly
With the end of the “Bronze Ten”, the market conditions gradually weakened and orders were placed sporadically. Domestically, the sales situation during Double Eleven is not good. At present, there are only sporadic winter replenishment orders, and most of them are loose orders. In foreign countries, export brands, especially clothing categories, have poor sales. A small number of Christmas orders are gradually being delivered, making it more difficult to connect subsequent new orders.
Since the beginning of November, the start-up rate of terminal weaving has declined to varying degrees. Entering December, I am afraid there will be an even more obvious downward trend. At present, the comprehensive operation of looms in Jiangsu and Zhejiang has dropped to 52%: Wujiang is below 60%, Changxing is below 60%, Jiangsu is below 60%, Haining warp knitting is below 50%, and Changshu is below 50%. ; Shaoxing circular knitting machine is above 30%. At the same time, the inventory of gray fabrics is also rising. The current inventory is 38.2 days, an increase of 2.1 days from the beginning of November.
It is reported that a small number of water-jet loom factories stock spring fabrics, mainly conventional categories such as pongee, polyester taffeta, and four-way elastic. Recently, European and American clothing orders have arrived intensively, with most of them being delivered from March to April. However, there is currently no sign of improvement in the gray fabric market, which is still deserted.
At the same time, under the influence of public health events, textile people have lost confidence and are mostly waiting and watching. Even traders have suspended their plans to stock up and prepare goods. Although foreign trade has improved this year, the epidemic is still raging around the world. my country’s textile industry is highly dependent on foreign trade exports, especially markets such as Europe, the United States and Japan. The epidemic is currently raging in Europe. Last year, imports of various textiles from my country exceeded 360 billion yuan, while Japan also imported more than 144 billion yuan. This year, because the epidemic situation in the above-mentioned areas has not improved, many domestic companies still suffer heavy losses.
Hope still exists, we need to regain confidence
Although the current situation is not optimistic, fortunately, “God is good” and the temperature has finally cooled down this week. As an industry that is greatly affected by seasonality, the saying “depending on the weather” has been circulating in the textile market. Especially in the autumn and winter fabric market, “the colder the weather, the better the fabric sells” has almost become a law. As the temperature plummets, people’s demand for autumn and winter clothing such as down jackets has greatly increased, and there will be a situation of “returns” of autumn and winter fabrics on the market.
The drop in temperature can still help textile workers gain some confidence. After all, the “Double Twelve” holiday is about to come, and when the weather gets colder, the return rate of down jackets and cotton jackets will increase. It can be clearly felt in previous years that the textile industry’s “depending on the weather” is not an empty talk. The rapid decline in temperature has indeed brought a certain number of autumn and winter orders.
On the other hand, today’s polyester raw materials continue to fall, and prices are already at this year’s low. Therefore, preparing some clothing fabrics for next autumn and winter season in advance during this period is indeed a decision with low risk but optimistic expected returns. Of course, the current social inventory of gray fabrics is very high, and we need to be cautious when stocking up.
But at the same time, we must also see that the impact of the epidemic is still very strong at this stage, but the foreign trade market has improved significantly this year, so we have reason to believe that the impact of the epidemic on orders is gradually reducing. Domestically, the epidemic will pass soon, the suspension of logistics is only temporary, and the Illuminati will come soon.
Some factories have stopped for holidays and workers are returning home one after another. However, considering that there may still be the possibility of additional orders for Christmas, most factories are still persisting. New orders are also being issued sporadically in the spring. The Spring Festival is less than 2 months away, but textile workers cannot “spoil” yet. Opportunities must be won by themselves!
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