I missed the peak season of the textile industry in March and April, but this time I did not miss the off-season of July and August! The lack of orders caused by the epidemic combined with the traditional off-season has made the entire textile market extremely calm since July. The operating rate has continued to be low, gray fabric inventory has steadily increased, and orders have disappeared. Occasionally there were a few proofs and small tanks, but in the end most of them were abandoned. It can be said that the entire market has no bright spots!
However, being calm is not the outcome that the textile market wants. The lack of hot spots and popular products has caused textile companies to lose their guide to action. A large number of conventional and ordinary fabric varieties are produced together, and there is no limit to the large occupation of working capital to accumulate gray fabric inventory. As a result, textile enterprises that cannot wait for the arrival of the peak season in time are in a difficult situation. Should they strive to survive or compromise with fate?
Sales of millions of meters of goods are helpless and even counterattack
For weaving enterprises, when the market situation is poor and liquidity is lacking, , it is a good method to take out the gray fabrics in the warehouse and sell them at low prices. Especially many companies have adopted this method this year.
According to a trader, they often get gray fabrics from various gray fabric factories. In previous years, they inquired about prices from gray fabric factories. Their quotations were generally higher than what they expected, and they had room for bargaining. Also limited mainly depends on order quantity. But this year, the market has reversed. For the same fabric, gray fabric factories always quote prices that are lower than what they expect, and there is still room for counter-offering. Many gray fabric factories are actively shipping goods as long as they do not lose money, or even lose too much.
The recent selling of goods in the market has not decreased at all, and the situation has quietly changed. In the past few months, most of the sales were orders canceled by customers due to the epidemic, and there were many types and a small number of individual varieties. However, the recent sales situation is different. The types of sales have become single and the number reaches millions.
This situation occurs mainly because the sales of these textile companies in the past six months have not been optimistic, and most of the factory’s operating hours are spent on production and inventory. We are now in an unprecedented off-season, and there is no sign of an improvement in the market in the future. However, the endless inventory is still increasing, and eventually there are various sales of millions of meters or more. However, textile companies’ active selling of goods is also a manifestation of “survival with a broken arm” to mobilize funds to continue fighting. But obviously not all companies in the market are still confident about the future, and some are even preparing to bid farewell to the textile industry and move to other industries.
Selling business licenses and saying goodbye to textiles
It is common to sell fabrics this year, but no one expected that this year, selling business licenses and environmental protection indicators will also become become common. You must know that the business licenses and environmental protection indicators of textile factories are scarce. Basically, there will be no new additions to the market. Holding these indicators and licenses is already beyond the reach of many people. In the past, even if they wanted to sell, It will be bought at a high price immediately, but now the scarce goods are being hawked everywhere.
Most of the business weavings that were sold were Regarding printing, the printing market this year is obviously much bleaker than the dyeing market. Mainly because the printing market is relatively limited and often appears on spring and summer clothing fabrics. However, the global epidemic raged at the beginning of this year, and spring and summer textile production was basically delayed. Moreover, some autumn orders have also been canceled by customers in large numbers, and products requiring printing processes have been further reduced.
Some larger water printing factories can’t even operate half of their fourteen or five printing machines. The situation of some smaller transfer printing and digital printing is even worse.
According to the owner of a digital printing factory, their small scale only has five paper output machines and one blanket machine. There were few orders this year, and their number of workers was reduced to just one. However, the orders were still not enough to maintain production, and they finally decided to close down directly. There are many printing companies like them on the market. It is not surprising that they chose to sell their business licenses under the double blow of reduced orders and shrinking profits.
The seemingly unbelievable thing of selling off business licenses and environmental protection indicators has actually happened this year. The choices made by these companies also truly illustrate that the current situation in the textile industry or printing market is unacceptable. Optimism is also a sign of their loss of confidence in the future. Comparing the two aspects, those companies that are selling large quantities of goods and actively seeking to survive still have certain confidence in the future. </p
