The Spring Festival of 2021 is getting closer and closer. Currently, some weaving and dyeing factories are already on holiday, and some are undergoing year-end finishing work. In order to be more To gain a better understanding of the textile companies’ orders, start-up, holidays, production plans after the year, etc. during this period, we went deep into the textile companies in the Wujiang area to bring you front-line research.
56% of textile companies received orders in January that were worse than the same period last year
Among the sample companies surveyed, only 28% believed that the order volume in January this year was better than the same period last year, and 56% thought it was better than the same period last year. It was worse than last year, and 16% of companies thought it was about the same as last year.
At the same time, many companies also said , although orders in January are still less than the same period last year, orders have been received after the Spring Festival, and work will basically start as soon as the new year begins. The person in charge of a company that makes outdoor fabrics said: “We plan to have a holiday at the end of the month and start work on the eighth day of the Lunar New Year. We mainly make tent fabrics. There is a relatively large demand for tents at home in Europe and the United States, and there is also a relatively large demand for domestic civil affairs tents, so next year The order volume in the first half of the year can be guaranteed.” The person in charge of a company that manufactures four-sided bombs and T400 also revealed: “Because the products are right, the operating conditions are relatively good, and orders have been scheduled for March or April after the year.”
During this period, domestic and foreign trade orders have performed well due to the increase in raw materials. However, overall, they are still less than the same period last year. Mainly Because of the impact of the epidemic, workers returned home early, which resulted in some dyeing factories having to take holidays early. The market entered a window period early, and textile companies also cautiously accepted orders. A trader said: “Dyeing factories have gone on holiday early this year, and some orders may not be delivered on time, and funds need to be paid in advance, so orders are selectively accepted during this period.”
Most textile companies have fully entered holiday mode
According to the survey, most factories have fully entered holiday mode. Only A small number of companies are still working and plan to take holidays in early February. According to data monitored by Silkdu.com, the current operating rate of textile companies is around 40-50%, and the number of companies taking holidays is increasing.
This year, in order to keep employees as much as possible for the New Year , companies have also introduced some policies. A home textile company said: “If any employees are willing to stay during the New Year this year, the factory will be very happy to turn on the machines for production. In this way, employees can earn more money.” Other companies also said: “We will give employees some incentives and provide dormitories for employees, so there are still employees who are willing to stay.”
As for when to start work after the Spring Festival, most companies said that they will start from the eighth to the fifteenth day of the first lunar month. time, but it still depends on the actual arrival of workers. 22% of companies believe that the operating rate can be restored to less than 40%, 39% of companies believe that it can be restored to 40-60%, 22% of companies believe that it can be restored to 60-70%, and 17% of companies believe that it can be restored to 80%. into or above.
The price of raw materials has risen too much, disrupting the pace of stocking up by textile companies before the Spring Festival
As soon as 2021 starts, the price of raw materials has skyrocketed. The rise in prices has caused many cloth bosses who originally planned to stock up before the Spring Festival to stop. The boss of a pongee Oxford cloth manufacturer said: “This year has been greatly affected by the epidemic, profits have shrunk, gray cloth inventory is high, and raw materials during this period It has increased a lot. We also plan to prepare a small amount of raw materials before the Spring Festival, so as to ensure that we can start production after the new year.” The person in charge of another company that makes extra-wide home textile fabrics also revealed: “Raw materials have increased a lot now, so I am a little afraid. Stocking up, still waiting to see.”
This For some time, the rise in crude oil, ethylene glycol, and PTA has driven the rise in polyester filament. However, the downstream situation is not as optimistic as the upstream. First of all, due to the recurrence of epidemics at home and abroad, most companies still purchase raw materials according to their own rhythm. Large quantities of goods will be prepared, and the second reason is funding. Textile enterprises are relatively tight at the end of the year. In addition, this year’s receivables account for a large proportion of annual sales, and account periods of more than three months are the norm. Therefore, it is expected that this year It is difficult for textile companies to get all the money back, which also limits their ability to stock up on raw materials.Rhythm.
68% of companies are optimistic about next year
Textile companies have different views on the market for orders after the Spring Festival. A large proportion of the post-holiday expectations are positive. Accounting for 68%, 32% think there will be a stalemate; basically no one thinks it will get worse. It can be seen from this that most bosses are still optimistic about the market after the Spring Festival.
Judging from the current order volume of textile enterprises , many companies have already received orders in March and April after the Spring Festival. The person in charge of a company with more than 100 looms said: “The orders on hand now can be executed until April, but what will happen next?” The situation is still unknown, and we will take it one step at a time after the new year. But it should not be worse than after the Spring Festival last year, and the vaccine is now available, so we still have confidence.”
Although no one can say for sure what will happen next year, judging from a series of current factors, there is still hope for an improvement in the market. Finally, I hope that all textile workers can successfully complete the orders on hand, take back all the money floating around, and live a happy New Year!
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