“Sorry, I can’t accept this order, and I won’t be able to deliver the goods before the holidays.” Recently, a textile boss was “bargaining” with a customer because of delivery issues.
After New Year’s Day, both the domestic and foreign trade markets ushered in a short “order wave” under various favorable factors. Originally, a sudden new coronavirus pneumonia epidemic in 2020, It has brought an unexpected impact to the market. From the “order shortage” at the beginning of last year to the “order wave” at the end of the year, the market can be said to have experienced unprecedented ups and downs.
According to normal thinking, it is a good thing to have orders, so why did the textile boss “turn away the door”?
Factories are busy rushing to weave orders
With the surge in raw material prices in January, The market has been injected with a “stimulant”. With strong support from the cost side and favorable factors such as free vaccination across the country, orders from downstream customers have also been placed one after another. Both autumn and winter fabrics and spring and summer fabrics have performed to a certain extent, especially in January this year. A super cold wave has ushered in, and the temperature across the country has been extremely low, which has also driven the sales of down jackets. Clothing manufacturers’ inventory reduction will inevitably increase orders or prepare for next year’s stocking, so the overall market order performance is good.
It is reported that elastic fabrics are still performing strongly in the market recently, especially foreign trade orders. Recently, I heard that T400 and four-way elastic are in large quantities in dyeing factories. Some dyeing factories said that the shipment of stretch fabrics has been slow recently.
“Now it takes 15-20 days to get into the warehouse before shipment, and it needs to be pressed. Many of them are stretch fabrics, mostly T400, and customers are also stocking up.” One person The dyeing factory salesman said.
Many textile bosses said that market orders were placed intensively at the end of December, so the factories had more or less orders on hand to execute, and those with better orders had been received after the Spring Festival. Orders are usually received around late January. At present, the market is not very loyal to urgent orders. After all, the orders on hand have not yet been completed, and there are many uncertainties in later production.
The employment issue may be brought forward
Originally, according to previous years, many migrant workers would go home on vacation one month before the Spring Festival. , but due to the recurrence of the epidemic this year, various provinces and cities have begun to introduce policies to encourage migrant workers to celebrate the New Year at work to reduce the risk of back-and-forth infection and the isolation period. Therefore, many workers are afraid that it will be difficult to return to their hometowns in the future, so they begin to return home early.
A person working in Wujiang in northern Jiangsu said that he had recently received a notice: “If you return home before January 27, you only need to bring a nucleic acid test form. After the 27th, you only need to bring a nucleic acid test form. , and still need to be quarantined for 7 days.” In order not to prepare for quarantine, he planned to take leave in advance and go home.
A proprietress of a circular knitting machine factory said that some workers had returned to their hometowns during the New Year’s Day holiday, and now there are not enough workers in the factory. Another weaving boss also said that the number of workers has begun to decrease recently. Many people went home early. In addition, many migrant workers with children studying in the local area said they would go home after their children have finished their exams. Therefore, it is predicted that in late January, textile workers who want to return to their hometowns for the New Year will start their return plan to prevent the policy from tightening later.
The labor problem in the dyeing factory is more serious, especially in unwinding, dehydration and opening, etc. Basically, many of the steps are done by salesmen and customers themselves. Judging from the current situation, the labor situation in the market is expected to be significantly tighter in the second half of January, the market production load is unstable, and the decrease in production capacity will naturally have an impact on the delivery date.
From a recent poll on the China Silk City Network, it was found that among more than 100 textile professionals, nearly 50% chose to take a holiday in mid-January, and nearly 30% chose to take a holiday in mid-January.
Market Order With the outbreak concentrated, the “window period” in the market outlook may be extended!
For many institutional people, the current market situation is actually beyond expectations:
On the one hand, Raw materials have bottomed out and rebounded, and the market cost side has released a bottom signal, which has led to better-than-expected stockpiling operations for raw materials and gray fabrics, and market orders have been issued one after another;
On the other hand, the The recurrence of the COVID-19 epidemic may lead to many uncertain factors at home and abroad. In particular, many overseas countries and regions have begun a new round of “city closure” policies. There are too many uncertain factors in the market in the future. In addition, domestic employees have returned to work. The local time is also unclear. After the Spring Festival, production is unstable and delivery times are affected. Therefore, some orders are placed in advance to prevent delays in later delivery links.
Mr. Li, who makes military fabrics, said: “We currently have plenty of orders on hand, and we will have orders for some time after the New Year, but I am now very afraid of the New Year.” There is a problem with the delivery of subsequent orders. If the production cannot keep up, my order may face a lawsuit.”
Whether it is just a bargain hunting or an order placed in advance, the recent market conditions are still better than expected. , but in my opinion, there are still benefits in the market.factors, especially the resurgence of the epidemic.
The weather is cold, the domestic epidemic shows signs of counterattack in some areas, and the foreign epidemic continues to ferment: the UK has more than 60,000 new cases in a single day, Scotland has closed the city; Tokyo, Japan and surrounding Kanagawa Prefecture, Saitama Prefecture and Chiba Prefecture have implemented a state of emergency since January 8; the new coronavirus epidemic in the United States continues to spread, and the Northern California Bay Area will extend the stay-at-home order indefinitely…
As of January 11, the cumulative number of confirmed cases of COVID-19 worldwide has exceeded 90.65 million, reaching 90,655,893, and the cumulative number of deaths has exceeded 1.942 million. The epidemic is still It is a “ticking time bomb” in the textile and apparel market.
From the perspective of the overall environment, there are still certain variables in foreign trade orders after the Spring Festival. Coupled with the advance of orders, orders placed after the Spring Festival this year may not be as good as in previous years.
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