2020 will be difficult for the entire society, country and even the world. We not only have to fight the sudden virus, but also deal with the ensuing economic crisis.
Recently, another large textile company declared bankruptcy due to serious losses: Shandong Hualong Textile Co., Ltd. has been announced by the Wulian County People’s Court. Declare the company bankrupt!
It is reported that the company is a well-known old brand in Shandong The company has 120,000 spindles, 1,000 shuttle looms, 382 world-class air-jet looms, 200 rapier machines, 7 Japanese air-jet spinning machines, and more than 200 garment processing equipment (sets). Employees 5,000 people, with total assets of 580 million yuan, including 5 branches and 1 provincial import and export Co., Ltd., its “Longfang” brand chemical fiber series natural yarn and “Longfang” brand polyester-viscose fabrics have been certified as “Longfang” brand Shandong famous brand” products.
No matter what the reasons were for the company’s poor performance in the early stage, this year’s severe epidemic may be the last straw that crushes it. Affected by the global spread of the epidemic, textile companies have difficulty receiving orders and capital turnover, and there are also many bankrupt companies.
Large department stores were crushed by the economic aftermath of the COVID-19 epidemic; the well-known American clothing retailer J.Crew filed for bankruptcy protection, becoming the first major U.S. retailer to file for bankruptcy protection during this epidemic…
The impact of the epidemic on the global textile value chain is shocking. According to the latest news: The International Textile Manufacturers Federation (ITMF) conducted its third survey on its members, affiliated companies and associations from April 16 to 28, 2020. The survey results showed that global textile orders fell by an average of 41%. Compared with In 2019, global turnover was expected to decline by an average of 33% in 2020.
Looking at the situation of the textile market in Jiangsu and Zhejiang, the market situation in the three months after the beginning of the new year is indeed more tragic than in previous years.
In terms of raw materials: In the past three months, due to poor demand in the weaving market, upstream PTA, ethylene glycol Due to end-end collapse and high inventory, the prices of polyester filament products have dropped to varying degrees, with the declines exceeding 20%. In early May, boosted by the strong rise in crude oil prices, polyester yarn prices rose, but then fell rapidly. In recent days, the prices of polyester filament products have started to fall again. Production and sales are also not good, hovering around 50%.
Weaving inventory:According to the sample companies monitored by China Silk City Network, the current gray fabric inventory in Shengze area is around 41-42 days. Although it has dropped from the previous period, it is still at a high level compared with about 38 days in the same period last year. Under the influence of the epidemic, most foreign trade orders have been suspended. Although domestic trade demand has improved, it is still recovering slowly, and the destocking process of weaving companies is slow.
In terms of operating rate:According to statistics, the current operating rate of looms in Shengze is about 70%. In mid-to-late March, affected by the near stagnation of overseas orders, the operating rate of looms fell seriously; after May Day, manufacturers’ production enthusiasm increased, and the operating rate recovered slightly. However, year-on-year, the current loom operating rate is still at a low level. And it is about to enter the traditional off-season, and the operating rate is more likely to decline further.
Severe shrinkage in terminal clothing demand , causing the prospects of conventional products to be worrying, the production and sales of the weaving market are temporarily difficult to maintain, and inventories are high. But in sharp contrast to conventional varieties, masks and protective clothing are still hot in the market recently.
Take masks as an example. Although the standards for mask exports are now stricter, the US FDA has revoked the ban of about 60 Chinese manufacturers selling N95 masks in the United States. There are only 14 companies left with licenses, but as European and American countries begin to resume work and production, the demand for masks is still huge.
Recently, a trader said: “I recently received an order for 14 million KN95 masks. However, because they are exported to the United States, the quality requirements are very high. The country has American NIOSH There are not many manufacturers, and it is still very difficult to find a manufacturer based on the right price. Moreover, exporting to the United States is risky, and there is still uncertainty in Sino-US relations. But customers attach great importance to it and have stopped selling several garments in my hands. List, focus on the mask list.”
KN95 masks used in European and American countries are basically disposable.Recently, France, the United Kingdom, Denmark, Austria, Spain and other countries have stated that they will gradually unblock, so the demand for masks will still be large in the future, and they will still be popular in the market for a while.
At the same time, affected by the popularity of masks, the price of nylon has also risen sharply recently. The price of nylon POY has increased by about 800 yuan/ton from the end of April, the price of nylon DTY has increased by about 900 yuan/ton from the end of April, and the price of nylon FDY has increased by about 900 yuan/ton from the end of April.
Postscript
Under the epidemic, the market has formed obvious polarization, but from a relatively optimistic attitude, foreign countries have begun to resume work and production, and the demand for clothing will naturally increase compared with the previous period. Get better. At the same time, various closed entertainment and leisure venues will be opened in an orderly manner in China. When going out to play, the demand for clothing will inevitably increase. Whether it is domestic trade or foreign trade, the recovery of orders is a slow recovery process. It depends on who can persist to the end in the big waves.
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