“Recently, our company’s order-taking situation has improved, and we have received several orders worth tens of thousands of meters. Orders from dyeing factories have also increased a lot, and some factories are full. , it takes 2-3 days to get stuck.” Trader A said.
“The overall order situation this year is not ideal. The order volume is half less than last year. Now is the off-season, the orders are fewer than last month, and the proofing is nothing.” Trade B said .
The situations of the two traders mentioned above are in sharp contrast, but they truly reflect the market situation. According to the research of China Silk City Network, the current market is polarized with great contrast. The order volume in the entire market is still not good, but the order-taking situation of some trading companies has improved, and there are also a lot of batch orders, and some companies are even shipping whole containers one after another. However, there are still some companies that are still stuck in the stage of only making prototypes without actual orders. Even affected by the traditional off-season, the order-taking situation is even worse.
Affected by the epidemic in the first half of the year, the global economic environment was weak, and the living conditions of textile enterprises were much more difficult than in previous years. Nowadays, most companies have passed through the darkest moment, and the domestic and foreign sales markets have improved, which has played a certain role in boosting the market. But we cannot relax too much. The sustainability of this market wave is unknown, and it is also unknown whether the “Golden Nine and Silver Ten” will arrive as scheduled. The editor has heard that the market has improved recently, and one of the reasons is the overdraft situation of textile workers. Some cloth bosses have chosen to advance the stocking time, creating a “time difference” in order to reduce production costs. This wave of operations is like stocking up, and there are risks. Boss Bu needs to be cautious.
June to August every year is recognized as the off-season for the textile market, and the reduction in unit volume is also reasonable. For this year’s already sluggish market, some cloth bosses expect that the off-season will be even weaker.
The person in charge of a foreign trade company said that orders were mainly exported to Western Europe. Throughout the first half of the year and even during the severe period of the epidemic, orders were not greatly affected. There were orders one after another, but from then on The volume started to decrease in July, and no orders were received in August, mainly due to the off-season. At present, proofing has not been started. It can be said to be in the hibernation stage and is expected to resume at the end of August.
Therefore, some market participants are pessimistic about future market forecasts, believing that the traditional peak season may not be prosperous. Although the order volume is currently recovering, the overall volume is not very large. In addition, some of the products are market goods in the domestic market. They come and go quickly, making it difficult to have long-term sustainability. In addition, the overseas epidemic has not subsided, the market lacks confidence, and weaving companies have accelerated their operations to reduce burdens and production.
01
Clothing demand is expected to be difficult to increase
On the one hand, it is naturally driven by the global economic environment, and economic recovery will largely determine the demand for clothing. The “black swan” COVID-19 epidemic continues and is even intensifying in some areas, which will be detrimental to economic recovery in the second half of the year. In addition, the current recovery of orders from various countries around the world is not very optimistic. Import and export data from major overseas textile countries show that the recovery of orders in the second half of the year is still weak and will not return to pre-epidemic levels until at least next year. Therefore, clothing demand may still shrink in the second half of the year.
Vietnam Textile Group Vinate predicts that Vietnam’s textile exports will continue to show a downward trend in the second half of 2020, with a decline of as much as 14-18%, so that the total textile exports in 2020 may Reaching US$32.75 billion, a 16% decrease from 2019.
Jumnong, chairman of the National Textile Industry Federation of Thailand, said that the current exports of Thailand’s textile and apparel industry fell by 17% year-on-year, and imports fell by 19%.
According to the Bangladesh Textile Manufacturers Association, more than 50% of Bangladesh’s annual cloth sales orders have been completed by July, and 75% is expected to be completed by September and January next year. Exports will return to pre-pandemic levels.
02
Textile people are full of confusion about the future
On the other hand, some details of the market reveal that the market in the second half of the year is confused and there is a high possibility of improvement. It is now mid-August. According to the order-taking experience in previous years, orders for the second half of the year will be started at the end of August, and orders for the second half of the year will be launched in September and October.�The stage of centralized order placement. In mid-August, preparations for placing orders have already begun, but now there is no movement at all.
Youbu boss reported that at this time in previous years, he was discussing orders for the second half of the year with customers, but now there are no orders for the second half of the year, and customers are also very confused and don’t know. How to deal with the second half of the year. There is no news about the duplicate order. We don’t even know the color, pattern and meter. Everything is unknown.
Both cloth bosses and buyers are very confused about the market situation in the second half of the year. Therefore, no matter whether the peak season comes or not, cloth bosses should be mentally prepared. Don’t be fooled by the recent improvement in the market, and stocking up in advance should be done in moderation. Textile companies are walking on thin ice this year, and one wrong step may lead to disaster.
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