This year probably won’t be good. –The voice of most textile people
In the blink of an eye, June is about to come. Textile people have experienced the most difficult times since they started working in the “Gold, Three Silver, Four Red May” that should have been busy. Worst case. In previous years, as soon as May passed, the market situation in the first half of the year was basically over, and this year’s market situation ended before it even started.
Looking back on March, April and May, from the sharp rise and fall in crude oil prices to the sharp rise and fall in polyester prices, the crude oil and polyester markets All have experienced a roller coaster market, but the downstream weaving market has been in a tepid state. The market is still hard to find bright spots, and the transaction atmosphere is deserted. Although manufacturers’ production enthusiasm has increased slightly since May, and the loom startup rate has also increased, from the actual situation, most manufacturers are still struggling to maintain production and sales. The inventory difficulty has begun to enter the exhaustion stage.
The traditional off-season for the textile market is about to enter. What is the current situation of the domestic trade market? Will it have a stimulating effect on foreign trade orders after most countries in Europe and the United States begin to unblock? The editor will take you to answer them one by one.
Domestic trade: Orders are not abundant, but inventory is still large!
In early May, polyester filament had a good start, which led polyester manufacturers to clear part of their inventory, and weaving manufacturers also took the opportunity to sell a wave of goods. However, the market enthusiasm subsided rapidly, and the trading atmosphere began to return to dullness.
Especially recently, the market has entered the off-season and the atmosphere has become more intense. Most companies said that the current loom operating rate is not low and has increased compared with April. However, the orders on hand are not sufficient, which has led to another Entering the accumulation stage.
Mr. Meng, who specializes in the domestic trade market and specializes in knitted fabrics, said: “Although we make orders and don’t have much inventory, orders are not good during this period. We were pretty good at receiving orders in April. Yes, many orders that I thought would not be placed have been placed again, mostly for autumn fabrics, so I was busy until mid-May, and the delivery of early orders has come to an end. Now I don’t have any orders on hand.”
Also Mr. Wang, who owns 200 looms and specializes in high-density polyester taffeta, also said frankly: “The current operating rate is 100%, but the inventory in the past three months is several million meters. Production and sales are uneven, and the orders on hand are not stable. There is not much left, and the order situation will be even more difficult in June. The inventory will be so heavy that people can’t breathe. Later, depending on the order situation, we will consider whether to reduce production.”
Inventory is money, and for textile companies this year , holding on to cash is the first condition for survival. Even though the current operating rate of looms has dropped a lot compared with the same period in previous years, the inventory is higher than the same period in previous years. This year’s situation is much more severe than last year. Money is weighing on inventory, which has become a bigger headache for companies than orders.
Foreign trade:
Real orders are rare, 20% Intention money attracts customers to place orders!
Since May, most European and American countries have gradually opened up economic activities on the basis of basically controlling the epidemic. Whether it can stimulate orders for textile and apparel companies has become a question of market concern. However, after the visit, we learned that although there have been more inquiries and prototypes recently than before, the actual transaction volume is still very few.
Mr. Gu, who is mainly responsible for order goods, told the editor: “The foreign trade market is still not good and orders cannot be placed. Now the foreign clothing market It’s very bad. There are many large companies that have gone bankrupt, and demand will not recover quickly. Even if it recovers, it will be taken away by large companies first, and there will basically not be much left in the market.”
Mr. Song, who specializes in the Southeast Asian and Middle Eastern markets, recently came up with a good idea for foreign trade orders: “I have been communicating with my customers recently. I think now is a good time for them to stock up, because gray fabrics and dyeing fees are low. , but they were worried about the price increase in the future, so I came up with a method for them. I put down a 20% deposit now. The main thing in the later period is whether the dyeing fee will increase. Anyway, the gray cloth is made of low-priced raw materials. If the dyeing fee If the price fluctuation is not big, I will bear it. If the dyeing fee exceeds a lot, the customer will bear part of it. In fact, they will never lose money, and I can get the money to buy raw materials for production. “
The difficulty in placing foreign trade orders has become the norm in the current market. On the one hand, demand recovery is slow. On the other hand, foreign customers are also worried about a problem. Now, both raw materials and dyeing costs are at a historical low price. So There is a certain degree of discrepancy between the contract price set in the early stage and the current one, or the customer is worried that the contract price will change due to the increase in dyeing fees in the future.
Generally speaking, whether it is domestic or foreign trade, the substantive demand has not yet recovered. Of course, there are companies with orders, but most of them are still in a situation where they have no orders or no orders. stage of doing. The atmosphere of the traditional off-season has already hit us, especially conventional products, which will find it difficult to improve this year. Of course, if there is a burst point in the market, it will follow…Like pongee and polyester taffeta, which were hot sellers in the past, even though they are no longer popular, a large number of goods were taken away due to factors such as hype. “The domestic and foreign trade markets are a community and cannot be just one side. I think the turning point for market improvement will be in September. There may be retaliatory consumption abroad. October and November may be the busiest time period this year.” Mr. Song said. </p
