Recently, some news has triggered heated discussions in the market
On August 20, a well-known company listed in Hong Kong Footwear company Jiuxing Holdings Co., Ltd. released its semi-annual performance report as of June 30, 2020. The report stated that due to the new crown pneumonia epidemic disrupting the global retail industry, the group’s revenue in the first half of the year was US$511 million, a year-on-year decrease of 31.9%. Shipments fell 30.8% to 20.4 million pairs, compared with 29.5 million pairs in the same period last year. Jiuxing Holdings said it would increase profit margins by permanently closing factories in China and accelerating the relocation of production capacity to Southeast Asia.
Shandong Yuncheng County Textile and Garment Association August A notice was issued on the 24th, recommending that all textile companies in the county temporarily lower industry wages by less than 10% as a whole to cope with the crisis of production restriction and suspension caused by the new crown epidemic and the international situation.
The reason for this phenomenon is undoubtedly The epidemic has caused a sharp reduction in terminal consumer demand, impacting the development of all walks of life. Of course, textile and clothing-related companies are also in a severe situation.
With revenue of 100 million yuan, the overall market size has shrunk by 15%, and most clothing brands are facing risks.
The prospects of downstream garment companies are worrying, which to a certain extent affects upstream raw material, weaving, and finishing companies.
Raw materials open a downward channel
Previous period At this time, polyester filament has started to slowly increase. However, due to the high inventory of downstream weaving companies, the start-up rate has not improved. The demand for polyester has not improved significantly. With insufficient support, polyester production and sales are difficult to increase. It continues to remain near 60%.
Recently, polyester yarn has started a downward trend for several consecutive days. As of now, the price of polyester filament FDY products is around 5,650 yuan/ton, the price of POY products is around 5,100 yuan/ton, and the price of DTY products is around 6,620 yuan/ton. Compared with last week, they have all declined to varying degrees. Polyester manufacturers have launched a new round of large-scale discounts and promotions, but textile companies are not enthusiastic about purchasing, and most of them focus on digesting inventory. The transaction atmosphere in the polyester market is not good, and there are occasional over 100 market prices, but it is difficult to sustain. Sluggish production and sales and high inventories of polyester manufacturers have further lowered polyester yarn prices.
Many weaving companies accumulate inventory Mainly
Since last year, clothing companies’ demand for fabrics has mostly shown a “small batch, multi-batch” model, but this year has been affected by the epidemic. , clothing companies have difficulties in capital turnover, and they are in a state of high inventory. Naturally, they focus on “saving money”, and the demand for fabrics is further reduced. Feedback to the gray fabric market has also seriously affected the shipments of weaving companies. At present, the market situation is still in a state of boiling frogs in lukewarm water. Most companies are still mainly stocked with inventory and have shipped a small number of orders. At the critical time of the “Golden Nine”, the number of prototypes in the market seems to have increased, but the actual implementation is still unknown.
A person in charge of regular products said: “Recently, autumn and winter fabrics have been slightly out of stock. For example, 300T pongee has an order of 20,000 meters. There is little order volume for all the varieties. I have been making a little more samples recently, I estimate that more than 100 samples have been made, but no actual orders have been placed yet.”
After finishing the company’s encounter with “sitting together”
Dyeing factories are an important indicator of whether the textile market is good or not. In recent times, the situation in dyeing factories has generally not been ideal, with the average operating rate being around 60%. As the downstream link of the dyeing factory, finishing companies are affected by the market conditions of the dyeing factory, and the orders for coating, printing, hot stamping, washing, and lamination are also not satisfactory. Although there are samples, actual orders are scarce. Some manufacturers can maintain orders, but most companies are still unclear and it is difficult to return to normal levels.
The person in charge of a composite enterprise said: “The order situation in early August was still good, and the machines were fully used, but now there are basically no orders, and the machines are only I opened one and produced more than ten meters of free sample cloth in one day. The cost of washing the machine was more than 200 yuan. I don’t know when it will be able to operate normally.”
We are about to enter the “Golden Nine”, but according to the current situation, the epidemic is facing a second outbreak abroad, and the operating conditions of various clothing companies are not ideal. The bankruptcy of old companies continues to occur, which has a negative impact on the textile market. Generally speaking, they are all negative factors. Polyester, weaving, and clothing are all usedWith its own “high inventory” status and the inflection point for destocking is difficult to find, with the superposition of negative factors, it is still difficult to capture signs of an improvement in the market. </p
