Due to the impact of the epidemic this year, many foreign traders, after experiencing the darkest moments of “order shortage” in May and June, finally returned to China in July and August. I feel the warmth in the month.
“Recently, our factory’s foreign trade orders have also begun to increase, and foreign trade orders have been received. The quantity accounts for 60% of the entire inclined pipe workshop. For several large customers, 1-2 cabinets of gray fabric are put into the warehouse every day. The most common customer is 5 cabinets of gray fabric in a day. It’s so sad. As a result, the delivery time will be extended for a long time, and the goods will not be shipped for 10 days.” A salesperson from a dyeing factory described this sweet burden.
The orders received by downstream textile companies are also true Reflecting the improvement in foreign trade orders. It can also be seen from the customs export data that the overall foreign trade exports began to improve in July. The export of textiles including masks was 634.32 billion yuan, an increase of 35.8%.
It is understood that after domestic autumn and winter orders improved at the end of July, foreign trade orders also improved. In terms of gray fabrics, imitation silk has bucked the trend recently, and products such as washed velvet and high-quality silk products have received batch orders; four-way stretch gray fabrics have been shipped smoothly, and some varieties need to be custom-woven; even nylon gray fabrics, which no one was interested in in the early stage, have also been sold. “Salted fish turned around”, especially Nisi Fang, finally ushered in the shipping stage. These gray fabrics are conventional varieties for foreign trade exports, so the volume of gray fabrics can clearly reflect the situation of foreign trade orders.
In terms of dyeing factories, some printing and dyeing factories used to process very quickly, taking just two or three days. It can be shipped, but now it only takes two or three days to press the card. Some factories even press the card for a week. Shipping speed has also been affected, with delivery times extended from 4-5 days to more than 7 days. From weaving, trading to printing and dyeing, companies have shown signs of improving orders.
As far as the overall textile market is concerned, the order situation is average, and the sales of gray fabrics are also sluggish. The inventory days of gray fabrics are still at a high level, and it is difficult to balance production and sales. Some of the market conditions described by the editor are local phenomena, with some companies performing more prominently. In other words, the market is polarized. So what are the causes of market polarization?
The operating rate in the short term does not measure the order quantity of dyeing factories
First of all, let’s look at the operating rate of dyeing factories in Wujiang area It’s not high, just over 60%. It seems that the operating rate does not reflect the improvement of printing and dyeing factories. Indeed, for this year, the operating rate is not a criterion for measuring the number of orders from dyeing factories. This is due to insufficient startup for a long period of time in the early stage, workers often took turns and their wages were halved, resulting in the loss of some workers. Now that the workload has picked up, it will be difficult to recruit workers in the short term, so the factory cannot increase its operating rate. The daily incoming volume of gray fabrics can clearly reflect the order situation of dyeing factories. It is understood that the recent incoming volume of gray fabrics in most dyeing factories is about twice that of the same period last month.
Fabric orders are concentrated in individual dyeing factories
The differentiation of printing and dyeing factory orders is due to factors such as different products processed by each manufacturer, different quality, different dyeing fees and other factors. Especially for foreign trade orders, the two-level differentiation of dyeing factories is relatively serious. On the one hand, some dyeing factories mainly process domestic market orders and process less foreign trade orders, so it is difficult to reflect the foreign trade situation. On the other hand, the types of gray fabrics have certain limitations for dyeing factories, such as imitation silk products such as washed velvet and high silk fabrics. Fabric merchants will take the gray fabrics to dyeing factories that specialize in imitation silk. Therefore, if such orders are placed in batches, It will be concentrated in several dyeing factories. Similarly, orders for four-sided bombs will also be concentrated in dyeing factories that specialize in the production of four-sided bombs. In this way, it is indeed easy to polarize orders.
The demand for fabrics in various foreign regions is different
There is also a two-level differentiation in the situation of traders receiving orders. , especially foreign trade orders, some companies continue to receive orders, and some companies are still stagnant. On the one hand, due to the different export regions, due to the impact of the new crown epidemic, the recovery situation of various regions around the world is different, and the demand for clothing and textiles is also different. For example, washed velvet and high-quality fabrics are popular because they are exported to the Middle East in large quantities and are mainly used to produce robes, headscarves, etc. There is a large demand for robes and headscarves in the Middle East all year round, and these fabrics are very cheap, so they can be sold in large quantities. On the contrary, some fabrics exported to Europe are mostly high-quality products. Consumers pursue personalization. Clothing brands do not mass-produce, so the demand for fabrics is small.
Although the market is polarized, some orders are improving, which can boost the market to a certain extent. Especially in the traditional off-season periodThe recovery of the market is like a “reassurance” for textile professionals. The most important thing is to seize the current market trend and be safe. As for whether the traditional peak season will arrive as scheduled, we are waiting for good news.
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