Since last year, many textile people have realized that the textile market is gradually weakening, and they have also predicted that the market in 2020 may be worse than that in 2019. But who knew that the epidemic that began to rage around the world at the beginning of the year would push the entire textile market directly to the bottom. All textile people have truly experienced the off-season market this year.
Now that the end of the year is approaching, the “answer sheets” of various textile companies can basically show the overall situation of this year. According to interviews and surveys, the overall operating status of most textile companies is far worse than in previous years.
Textile Enterprise 1: Sales volume cannot be compared with previous years. The proportion of decline can no longer be calculated, and profits have dropped by about 20%.
Textile Enterprise 2: Sales have dropped a lot this year, and there has been no movement in foreign trade so far. They are all supported by domestic trade orders. Profits are also poor.
Textile Enterprise Three: Orders have dropped by almost 50% this year. Profits have decreased even more. Now you can only earn a few cents per millet, and some even have to lose some money before you can sell.
Textile Enterprise 4: Sales have decreased by 30%-40%, and there is basically no profit.
Textile Company 5: Order volume decreased by 30%, and profits probably also decreased by 30%.
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Sales have dropped by more than 30% and profits are hovering near the profit and loss line. This is basically the production status of most textile companies this year. And one of the most obvious features of the deterioration in market conditions is the lack of peak season. Because of the different types of fabrics produced, the peak seasons of various textile companies in previous years are basically March and April in the first half of the year, and July, August, September and October in the second half of the year. However, these months of this year have passed, but many textile companies have not felt the sharp increase in orders at all. The factory operating rate is still lower than in previous years, and the inventory of gray fabrics is backlogged.
There have been many macro events recently, such as the US election, the second outbreak of the epidemic in Europe, significant progress in vaccines, etc. These events have more or less affected the textile market. . Amid all kinds of good and bad news, the textile market is quietly improving.
Spring and summer fabrics enter the production season and orders from textile companies begin to increase
November and December have always been the production preparation season for spring and summer fabrics for the coming year, and this year is no different. Recently, orders for various spring and summer fabrics have begun to appear in the textile market.
According to the person in charge of a textile company, they currently have a 70,000-meter printing reprint order in progress, which will be issued in the future. It is continuous. Recently, the regular chiffon There are many products similar to imitation silk. Another textile company has the same situation. Currently, there are about 1 million meters of four-way elastic in production, which may be used in both spring and summer clothing and autumn and winter clothing.
It is both reasonable and unexpected that spring and summer fabric orders have begun to increase. Although it is now the stocking season for spring and summer fabrics, the foreign trade market has not yet fully recovered due to the epidemic. However, as overseas countries accumulate experience in anti-epidemic work and various vaccines will be put into use in the future, the market’s panic in the face of the epidemic is no longer as bad as before.
Especially after March next year, the vaccine will be officially put into use, and the global economy will inevitably fully recover by then. The sales prospects of spring and summer clothing will be far better than the sales of various clothing this year. season, so it is reasonable to start stocking spring and summer fabrics before the end of the year.
Crude oil and raw material prices have risen and the market has begun to stock up
The rise in crude oil prices has led to changes in the prices of textile raw materials, thereby stimulating market stocking. It has always been a very common operation in the market, but this phenomenon is very rare this year. The main reason is that the crude oil market has repeatedly experienced sharp rises and falls, and the price of raw materials has been like a roller coaster, constantly hitting historical lows. Textile workers who prepared stocks in the early stage can only face the depreciation of raw materials and gray fabrics in stock. Therefore, no longer stocking up, buying and using as needed has become the operating principle of most weaving companies. However, this phenomenon has gradually been broken recently, and the rules for purchasing raw materials have begun to move closer to previous years.
According to the person in charge of a weaving company, he did not stock up on raw materials for most of this year because he was afraid that if he stocked up, the value would depreciate. But recently I have the idea of preparing raw materials, and I plan to stock up on 2-3 months’ supply, which can be used until the next month of the year. Another textile company has the same idea. They are planning to stockpile dozens of tons, which is probably enough for one or two months.
The changes in the production and sales of polyester raw materials in recent days can also be seen, especially the mainstream sales on October 10th Factory production and sales are between 200% and 300%, and some factories even reach an astonishing 600%. Some other interviewed companies also have the idea of stocking up, but they can only stock up in small quantities due to liquidity constraints. However, in general, the price of raw materials has increased this time, and the weaving market has stopped waiting and started to decisively purchase raw materials. Of course, this change is due to the fact that weaving companies had the habit of stockpiling raw materials many years ago.Inseparable, but the more important point is that weaving companies are gradually recovering their confidence in the market outlook.
Recently, some proofing, development samples, quotations, etc. have begun to increase in the market. Although it is difficult to see obvious changes in the short term, the market in the spring and summer after the year, especially during the epidemic, will be put into use. There will definitely be a big recovery later. </p
