Recently, it was suddenly reported that an unknown pneumonia epidemic has occurred in Kazakhstan, and the fatality rate is far higher than that of the new coronavirus! According to media reports in Kazakhstan, the incidence of pneumonia in Atyrau, Aktobe and Shymkent cities has increased significantly since mid-June compared with the same period. So far, nearly 500 people have been infected in the three places and more than 30 people are critically ill. In the first half of this year, Kazakhstan pneumonia caused a total of 1,772 deaths, and 628 people died in June alone, including Chinese citizens. The Kazakhstan Ministry of Health and other institutions are conducting comparative studies on the pneumonia virus, but have not yet clearly identified it.
The emergence of unknown pneumonia has once again worsened the situation for countries around the world that have been suffering from the new coronavirus for half a year. At present, there are more than 200,000 new cases of COVID-19 every day, and the cumulative number of confirmed cases has exceeded 12 million. The global economy has not yet recovered from the COVID-19 epidemic, which is not improving at all, and the unknown epidemic is likely to “stab” again. The timing of an upturn in global trade will undoubtedly become more unknown, including, of course, our textile trade.
Our textile market, which is deeply mired in the epidemic, has made no achievements in the first half of the year except for epidemic prevention fabrics.
“We are mainly engaged in the production and trade of imitation silk fabrics. The peak season for this type of fabrics is in March and April next year. However, this year due to the peak season of the epidemic It didn’t show up, and all our simulated silk types were slow-selling, with many varieties having inventories of over one million meters.”
“We used to work overtime in our textile factory, but starting from March, we have been working 8 hours a day, and the wages of all employees have been reduced by half. In recent months, we can only get a basic salary.”
“The best time of our dyeing factory this year was when we just resumed work. The backlog of orders from the year before pushed the operating rate to 100%, but it basically never exceeded 70% afterwards. It stays at 50%-60% for a long time, and occasionally drops to around 30%. Workers in the factory work in three shifts and take turns to rest.”
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Looking at the textile market in the second half of the year through the worsening COVID-19 epidemic and the unknown pneumonia epidemic, it is destined to be difficult to have too many outstanding performances. Should textile people actively demand breakthroughs, or should they shrink their front lines and wait and see what happens?
Following the trend of hot-selling products, but they are all “pitfalls”
The most popular products in the textile market this year are undoubtedly various anti-epidemic products, and of course there are many people following the trend. But just because others make money, it doesn’t mean that you can make money too.
“Our fabric business was not good this year. Seeing that mask-related fabrics were selling well, we also ordered a melt-blown machine. The price at the time was 8 million, and I paid a deposit of 2 million to wait in line. But I won’t be able to get the goods until recently, but I don’t plan to buy any anymore. On the one hand, this is because the mask market has basically ended, and the country has begun to strictly control it. It is difficult for this kind of fabric to obtain certification, and even if it is qualified, it may not be sold. Go. And the more important point is that the price of this meltblown machine has been reduced to 5 million, and the original contract was 8 million. Now you have to get another 6 million to get the goods. If you take it, you will lose 3 million, if you don’t use it, you will lose 3 million. The deposit is 2 million. It’s really heartbreaking to lose 2 million even though we haven’t done anything yet.” A textile boss said helplessly.
There are many situations like this in the market. When polyester taffeta fabrics for epidemic prevention became popular a while ago, there were also many followers. Many people even start production blindly without getting a contract or recognition, and the end result is of course a tragedy. During that time, many of the highly sought-after polyester taffeta fabrics were sold to dealers for a few cents. Under the epidemic, after all, only a few can make money, and there may be traps hidden behind what appear to be opportunities.
“Be content with the status quo”, although it is difficult to make money, it is also difficult to lose
And innovation, enterprising, development, transformation and upgrading In comparison, settling for the status quo always sounds less pleasant. But with this year’s market conditions, perhaps this state is the most correct posture.
According to a jacquard fabric manufacturer, this year they originally planned to purchase some new jacquard machines to transform and upgrade the factory. But looking at this year’s epidemic and the textile market, all expansion opportunities were immediately eliminated. And many machines and equipment in their factory began to adjust their production direction, turning to conventional varieties such as pongee and polyester taffeta. Because the market for these conventional fabrics is wider, the fabrics are easier to sell; at the same time, the production cost is low and there is no need to occupy too much working capital.
Because of this conservatism, the overall operation of the company this year has been stable, and the startup rate has been high. The inventory of gray fabrics is only about 200,000 meters, and the working capital on hand is relatively sufficient. In contrast, there are some companies that are eager to transform and get out of trouble, but end up suffering from high costs and unsalable products, resulting in a shortage of funds that threatens the survival of the company.
In the first half of the year, the impact of the epidemic Under such circumstances, it is difficult to find bright spots in the textile market. However, it is obvious that the textile market may continue to weaken in the second half of the year, especially when the new coronavirus pneumonia has not improved yet and unknown pneumonia appears again. In general, textile people must not blindly expand or follow the trend without full certainty. Not losing money may be the most perfect profit this year!
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