There are many macro-influencing factors in the textile market recently. The second outbreak of the epidemic in Europe, the US election, etc. are constantly affecting the confidence of textile people and the trend of orders. The textile market has also ended its prosperous state after the National Day and began to diverge.
The incoming warehouse volume has been cut in half, and the operating rate is 60%
According to the person in charge of a dyeing factory , after the National Day, the factory’s daily warehouse volume of gray cloth can reach 1 million meters when it is large, and it is still 700,000-800,000 meters even when it is small, and most of them are market goods. This volume every day basically meets or even exceeds the factory’s production capacity limit, but recently the market has taken a turn for the worse. The daily amount of gray fabric entering the factory has dropped to 400,000-500,000 meters. This amount can only meet about 60% of the production capacity and cannot maintain the dyeing factory operating at full capacity. The sudden change in the market has had a considerable impact on the use of machinery and equipment in the factory and the working schedule of personnel.
After 7 days of pressing cards, waiting in line for dyeing
The market has not completely weakened, according to an employee of a dyeing factory. , their factory mainly produces various relatively complex and high-end fabrics such as polyester cotton, rayon, and elastic fabrics. The factory has been overwhelmed with orders recently, and now any incoming orders must be held for 7 days. There are piles of cloth everywhere in the workshop. It is very difficult to find a vat of cloth. Even in the proofing room, you have to queue up for coloring. Another dyeing factory that specializes in air cylinder printing and dyeing has the same situation. Currently, the entire workshop is already lined with gray cloth bucket trucks waiting for production.
We have all seen the differentiation of orders in the textile market, but it is a bit surprising that there is such an extreme difference between good and bad at the dyeing factory stage. Different dyeing factories are completely different. There are two different textile markets, one is the off-season and the other is the peak season. Generally speaking, it is difficult for some dyeing factories to go out of stock or run out of stock in the market. After all, what others can do, I can do too. There is not much difference between the types of fabrics made by dyeing factories and the production processes. Yes, at most there is a slight difference in dyeing costs, but it won’t cause such a big difference. So why are there such unusual differences in the market?
Orders and market orders make the market conditions of dyeing factories very different
Although many of the dyeing factories mentioned above do There is actually not much difference in the types of fabrics, but there is a big difference in the types of orders. Dyeing factories with fewer orders have recently received market orders with relatively large quantities. Everyone knows that such orders are generally large in quantity, fast in speed and low in price. Those dyeing factories that are still in the peak season are those that make orders. Such orders are often limited in quantity, but have high quality requirements, can accept higher printing and dyeing costs, and have more generous delivery times.
The different statuses of the dyeing factory are actually the different statuses of orders and market orders. Fabrics with higher requirements for orders have continued to be popular since the National Day until now, while those market orders with a large number of orders exploded rapidly in a short period of one month after the National Day, and then fell back quickly. As a result, dyeing factories focusing on different types have shown different production status.
Then why are market orders so far inferior to orders in this market situation and so lacking in stamina? You must know that in previous years, the market order was the object of competition for various dyeing factories, and it would normally last until the end of November or even December.
The risk of finished product stocking increases, and brand clothing orders are stable
Most market orders are very price-sensitive, and the fabric requirements are not strict. They generally appear in the spot market or in some relatively backward and poor areas around the world. This type of order is generally ignored by brand clothing companies, and is handled by some ordinary clothing companies. There is a possibility of a second outbreak of the global epidemic in the near future. Ordinary clothing companies have limited ability to resist risks. Normally, they would not be willing to take the risk of unsalable clothing and overstocked inventory by purchasing large quantities of fabrics. Therefore, the number of market orders this year is limited compared to previous years, and the recent second outbreak of the epidemic in Europe has intensified the cautious atmosphere in the market.
On the other hand, the main customers who order fabrics are mostly brand clothing companies with relatively high quality requirements. Although the market is not going well this year, with many well-known brands closing stores and laying off employees, the worst is over. Moreover, clothing brands such as “A skinny camel is bigger than a horse” still have sufficient market appeal. Especially in the market, there are a large number of clothing sales stores and the supply of clothing is reduced. The clothing demand in the market is easier to be captured by the remaining companies. Therefore, the orders of this type of clothing companies are relatively stable, and their performance in the fabric market is also relatively outstanding.
Whether the current textile market is good or bad, dyeing factories have given different answers. In the final analysis, it is the difference between orders and market orders. All clothing companies are not in good shape this year, but customers who place various market orders are still greatly affected, and their confidence in the future is seriously damaged. And those order buyers who pay attention to quality have begun to return to calm after experiencing the storm of store closures and business suspensions, and orders have begun to stabilize. Although the current volume of orders is still difficult to promote the improvement of the entire market, only the stability of orders can truly drive the market recovery.
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