Since October, the textile market has been full of “surprises”, with frequent news such as “raw material price increases”, “grey fabrics out of stock”, and “printing and dyeing warehouses exploding”. , millions of meters of domestic and foreign trade orders have been placed one after another, which is in line with the peak season atmosphere of the “Silver Ten”. However, textile people who have experienced the baptism of the epidemic still have some uneasiness and uncertainty about the future. Is the current market situation a temporary improvement, or is it ushering in a real comprehensive improvement?
Double Eleven orders are basically over, and the market is still hot
Since October, downstream Orders have increased significantly, and the operating rate of looms in Jiangsu and Zhejiang has rebounded to 80-90%. Many companies said that Double Eleven orders have basically ended. Whether they are traders or weaving manufacturers, they have more or less orders on hand to execute. It can last until the end of the year at most, and it can last for about a month at least.
A manufacturer with 135 water-jet looms revealed: “The looms are currently at full capacity. They are mainly making camouflage fabrics for foreign trade orders, probably. It can be done by the end of December.” An integrated industry and trade enterprise that makes four-way stretch and brushed fabrics also revealed: “We have 100 looms, and the order can be completed until the end of the year. It is a domestic trade order, and the products are mainly four-way stretch.”
The market can also be seen from the dyeing factory It is still quite popular. A dyeing factory in Shengze area revealed: “What we are doing now are basically market goods, and the delivery time usually takes more than half a month.” Coincidentally, traders also felt deeply. An industry and trade company that produces work clothes fabrics An integrated enterprise said: “Right now, the dyeing factory is still in a state of liquidation, and it takes a week to press the card. The main reason is that the dyeing factory we do has a lot of goods in the market, and our orders have to be placed on the fast track to get them out. Generally, the delivery time is It takes 25 days. The dyeing fee has increased a bit, mainly for the expedited part.”
Fabric prices have risen and profits have improved
In addition to the increase in the number of orders, the prices and profits of fabrics since October It has also improved compared to the previous period, and is gradually getting closer to last year. A cloth boss who specializes in four-sided elastic and T400 revealed: “The price of raw materials has increased this month. The price of our finished products has increased by about 1 yuan/meter, and the profit has increased with It was basically the same as last year.” A trader in rayon, Tencel and acetate cloth said: “Compared with last year, the current profit is about 5% lower.” The person in charge of a company mainly engaged in suede said: “Now The profits are much better. Some time ago, we could only maintain capital, which is still worse than in previous years. In the past, the profit of products could reach 20% at the best time, but now it is only 10% at most.”
In the past, many manufacturers chose to sell goods to withdraw funds in order to maintain the operation of the factory. But now as the market improves, the phenomenon of selling goods has become much less. There are more price increase orders, and there are many announcements. The boss said that the increase in fabric prices is due to the increase in raw material prices, and the increase is not large. If the market weakens later and the price of raw materials drops, this part of the price increase may fall back, so take advantage of this period to try to buy more. Get rid of some inventory. After all, the Chinese New Year is just three months away. This year, the billing periods for domestic and foreign trade customers have inevitably been extended. They are generally 2-3 months, and some are more than 3 months, or even half a year or a year. If the final payment at the end of the year is not returned, workers’ wages, water, electricity, and rent will still have to be paid. Cash is particularly important for the textile industry.
Generally speaking, some autumn and winter fabrics are more popular on the market now, such as nylon, T400, T800, four-way stretch, etc. In addition to autumn and winter fabrics, some Spring and summer fabrics have also started to be produced, and some manufacturers that specialize in imitation silk and Tencel also said that customers have recently begun to place orders. Although orders for Double Eleven have basically ended, the current market is still in a steady upward trend.
The epidemic broke out again in Europe, and many countries canceled Christmas markets
Although the domestic market is now picking up, However, the overseas market has been experiencing constant turmoil in the past few days. Europe has been the first to bear the brunt of the second outbreak of the epidemic. Due to epidemic prevention considerations, Nuremberg, Frankfurt, Erfurt in Germany, Strasbourg in France, and Prague in the Czech Republic have announced the cancellation of this year’s Christmas markets. .
So for cloth bosses involved in the European market, Said that there is still great uncertainty in the foreign trade market in the second half of the year, and there is a high chance that cancellations and suspensions of orders will happen again. During the interview, a boss said that due to the lockdown in some European countries, Some big orders were cancelled. Therefore, in the coming time, Boss Bu still needs to control risks!
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