The news that the printing market has improved last week has not completely dissipated. This week it suddenly came out that there was a serious shortage of orders in the printing factory and production was no longer able to meet the demand. Continue.
“Recently, we have an order of 2,000 meters in a printing factory. The gray fabric came into the warehouse last week. At that time, we waited in line for three days for production. Recently, It was just printed. I was originally planning to finalize and ship it today, so I called the salesperson and asked him to help line up a queue to prepare for finalization. Who knew that the factory is not busy anymore, and all 4 finalization machines are parked there waiting. Customers can use fabrics to finalize their designs without queuing up at all, and the ten printing machines are not fully operational and only 5-6 are running,” said a fabric trader.
I thought that the “hotness” of the water printing market a week ago would at least last. It lasted ten days and a half, but who knew that it would take a turn for the worse in just one week. The rapid recurrence between peak season and off-season is also rare in the textile market.
Lack of orders, printing returns to off-season
Although the traditional printing peak season is September and October It has not arrived yet, but judging from the recent performance of the printing market, it is very likely that this wave of market has been overdrawn in advance, and it is already too much to hope for a peak season in the future. A big factor in this situation is the continued postponement of sales of finished clothing.
As we all know, printed fabrics are mainly used in spring and summer clothing, while the main function of winter clothing is still to keep warm. Although in recent years, fashion and popular concepts It has also begun to awaken, but it is difficult to “bloom a hundred flowers” like spring and summer clothing in a short period of time. The peak season in September and October is mainly for the production of autumn and winter clothing. Winter clothing does not use many printing elements, but what about autumn clothing?
Autumn clothing may have driven the printing market into the peak season in previous years, but this year it is obviously difficult to do so. This spring, the entire sales season was missed due to the epidemic, and a large number of clothing company warehouses were filled with spring clothing inventory. Some of them change some spring clothes into autumn clothes for sale, or simply resell them as they are, which leads to a significant reduction in demand for autumn clothes.
More importantly, some clothing giants have taken the lead in making it clear that they will cancel or reduce autumn sales. Regarding clothing orders, American sports giant Nike said it has canceled about 30% of its factory orders before the autumn and year-end shopping seasons; American fashion luxury goods group Ralph Lauren said it has canceled about two-thirds of its autumn orders.
The future of autumn orders is so uncertain, so naturally there is a serious lack of stamina for printing orders in this area. But what is even more alarming is that if the spring clothing inventory in the first half of the year cannot be digested well this autumn, it is very likely that this part of the inventory will be transferred to the next spring. If you miss the two peak seasons this year and miss the spring market next year, the printing market will be even more miserable.
Obviously, the market is not only bleak for printing factories, but also for dyeing factories. The situation is also less optimistic than in the previous period.
The operating rate has dropped, and the dyeing fee is clearly negotiable
The production status of the dyeing factory is textile The most intuitive feedback on the market situation is that although the overall printing and dyeing market is in poor condition this year, the operating rate performed well half a month ago during the off-season. However, this state lasted very short-lived.
“In July, the daily warehouse volume in the factory could reach 400,000-500,000 meters, the availability rate can be maintained at 60-70%, but the market has been bad recently. Now the factory has only about 350,000 meters of warehouses every day, and the availability rate can only be guaranteed at 50%.” A dyeing factory is in charge. The man said.
July and August are the off-season for traditional textiles. I thought that the market for special dyeing factories this year was not weak in the off-season. Who knows? Knowing that the market situation is fleeting, while orders continue to decrease, dyeing factories can only seek to reduce dyeing fees to attract orders. It is reported that many large factories have begun to notify that for some large customers and large order prices, they can directly communicate with the dyeing factory owners and provide appropriate preferential prices in order to retain customer orders.
The order volume is limited, and continuing to reduce production capacity is not a long-term solution. Unfortunately, dyeing factories can only compete for orders by lowering prices. However, dyeing factories do not have the same cost advantage as weaving factories. The price of upstream chemical fiber raw materials has dropped, and weaving companies can confidently lower the price of gray fabrics significantly. However, the price reduction of dye costs in dyeing factories is quite limited. Secondly, the production costs of dyeing factories are scattered, including rent, water, electricity, gas, labor, fire protection, environmental protection, etc., which are very complex. Dyestuffs alone are not enough to have much impact on dyeing costs. Dyeing factories may sacrifice a lot by taking the initiative to significantly reduce prices. Most of them are losing money and making money just to maintain normal production.
Since August, the market has not had many surprises, and the off-season has arrived as promised. The short-term recovery in July was quickly overwhelmed by the off-season in August. The order volume has shrunk significantly and the operating rate has been cut in half. Autumn and winter fabric orders have clearly been reduced. Whether the peak season in September and October can turn around is not very likely now.
</p
