I still remember that a month ago, there were various news about holidays in the textile market. But in January, when the Spring Festival is getting closer, how many companies in the market are on holiday? The editor found that there are almost none. The few who have already gone on holiday are in the periphery. Almost all local factories are operating normally. According to previous practice, the Spring Festival holiday for the textile industry will be around 10 days before New Year’s Eve at the latest, and 15 days before the weaving mills earlier. The current holiday news in the market is that some weaving factories and dyeing factories will have a holiday on January 15th, and some weaving factories and dyeing factories will have a holiday on January 20th. So this year’s holiday time is completely consistent with previous years. It can be seen that there is no early holiday this year.
So why did the promised early vacation change? Of course it’s a list. Who would turn away the door and have a free vacation if they have business to do? It is understood that the current textile market has improved compared with the beginning of December, which means a “closed business”.
There is a wave of orders at the end of the year
The sales of gray fabrics dropped sharply in early December, the inventory increase accelerated, and many gray fabrics were left unattended. But in mid-to-late December, the delivery speed of gray fabrics accelerated, and the inventory also eased. Because of the improvement in shipments, some weaving mills that originally planned to take holidays in the middle of the month have postponed their holidays and continued production. However, in order to avoid excessive inventory, the machines were only operated at half-time. According to data monitoring from China Silk City Network, the current operating rate of water-jet and air-jet looms in Shengze is 71%. As can be seen from the figure, the trend of operating rates in December originally plummeted, but stopped falling and stabilized at the end of the month. Similarly, the gray fabric inventory of weaving enterprises in Shengze area is around 33.5 days. Although there is still an upward trend, the increase is shrinking. It can be seen that the market situation at the end of the year has indeed begun to “raise its tail”.
In terms of printing and dyeing, most dyeing factories are now full of orders, with press cards and gray fabrics piled up, and they are still frantically entering warehouses and shipping goods. According to a textile trader, the dyeing factory he cooperates with is very busy, with hundreds of thousands of meters of gray fabric entering the warehouse every day. Small orders are not welcome at all, and small orders of less than 10,000 meters have stopped entering the warehouse. A few years ago, the textile market would see a backlog of orders due to the reduction in production time. However, as the holidays approach the end of the year, there will be a relative decline in orders, and the factory is also winding down. However, this year, many dyeing factories were completely busy during the peak season, but things got better, which is the so-called “closed business”.
In a market where orders were supposed to decrease and gradually come to an end, printing and dyeing factories and traders still have orders on hand. What kind of signal does this give to textile people?
01The year-end market may continue until March and April
Looking back at the period from 2019 to the beginning of 2020, the closing market also ushered in a “closer”, and this wave of momentum did not stop because of the Spring Festival window period, and continued until April 2020. From this, we can infer that we will still be busy after returning from the Spring Festival, and we can successfully welcome the “Gold, Three, Silver and Four”. In addition, among the orders released at the end of the year, there are many foreign trade orders. It can be seen that even the pending foreign trade market has begun to recover. Coupled with the recent positive news about RCEP trade, it will further promote the foreign trade situation in 2022.
02The market may still face many challenges in the coming year
But if you think about it from another angle, you may not be so optimistic. First of all, since the outbreak of the epidemic, the textile market has also undergone changes. The market is unstable and does not follow routines. Therefore, the market over the years can only be used as a reference, and the possibility of reversal is relatively high. Secondly, it is back to the epidemic. There are still fluctuations in the country, and the epidemic abroad is still severe. In such a general environment, the economy and clothing demand are restricted, and the textile market in 2022 still needs to be challenged.
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