Recently, the international situation has been quite turbulent. Overseas epidemics continue to spread, international oil prices collapse, and global stock markets plummet…
As of 12:00 on March 12, Beijing time, a total of 43,787 cases of new coronary pneumonia have been diagnosed in 119 countries and regions except China. Looking at different regions, the virus spread from Italy to other European countries with an unstoppable trend last week. France, Germany, and Spain were severely affected. The epidemic situation in Europe as a whole is not optimistic.
On March 12, the Dow Jones Industrial Average fell 9.99%, while the Nasdaq Index and the S&P 500 Index both fell more than 9%. Affected by the plunge in European and American stock markets, the Brazilian stock market triggered two circuit breakers, while the Asia-Pacific stock market also heard circuit breakers one after another.
The COVID-19 epidemic is posing a severe challenge to the global economy. At the same time, it also poses a considerable challenge to weaving companies. The collapse of the stock market made Boss Bu uneasy. March is already halfway through, and the peak season is far away from us. As the backlog of orders for many years was completed and released, even the printing and dyeing industry has eased its busyness. In terms of gray fabrics, the situation is even more mediocre. On the basis of high inventory, the operating rate continues to rise, and the contradiction between supply and demand is once again stimulated.
Gray fabric prices fell again
With the decline in futures prices of polyester raw materials such as PTA and ethylene glycol, polyester filament has also continued to decline for several days. The drop in polyester prices should have been a good thing for cost reduction, but the cloth boss looked sad. The editor found out the reason after chatting with Boss Bu. “The price of polyester yarn has fallen sharply now. If the polyester yarn drops by 500 yuan, the gray fabric will drop by at least 1 wool. The polyester yarn will rise by 500 yuan, but the gray fabric will not rise. So the price of gray fabric is really low now. T400 cost more than 5 yuan last year, but only 4 yuan this year. No, there’s no money to be made,” said a cloth boss.
The phenomenon of market selling occurs one after another
The risk of global economic recession is rising rapidly, and the demand for clothing is further weakened. Although the domestic epidemic situation has stabilized and textile companies have resumed production, they are still affected by the global epidemic and the peak season is not prosperous. Faced with a one-month shutdown and high inventory, Boss Bu had no choice but to start a price war. The phenomenon of selling goods continues one after another in the market, and even imitation silk, which has been the best-selling product recently, is not immune to the disaster. A person in charge of a company specializing in the production of imitation silk said that at the end of 2019, the price of 100D chiffon was 2 yuan/meter, but now it has dropped to 1.8 yuan/meter. In previous years, the price of gray fabrics used to increase in March, and people queued up to get the goods. But now, in March, the prices of gray fabrics have dropped, and a large number of goods have been sold.
The situation of exporting to Italy is grim
Fabric exports have faced a crisis, especially in Italy and South Korea, which are severely affected by the epidemic. Due to the epidemic in Italy, measures such as city closures and school closures have begun. Fabric manufacturers in Jiangsu and Zhejiang have encountered many cases where orders exported to Italy have been cancelled.
Boss Bu has something to say
A foreign trade source revealed: “Most of my customers are from Italy. A few orders from the past few years have not been completed. Recently, customers from Italy have been urging me. Fortunately, the fabrics are sent to domestic garment factories. If they were sent to Italy, they would definitely be cancelled. The new order I am negotiating after the new year is yellow The customer is on the verge of a shutdown and has suspended orders.”
According to CNMI, the outbreak of the new coronavirus will This resulted in the Italian fashion industry’s sales falling by 1.8% in the first half of 2020.
Boss Bu is facing the current situation The market situation is worrying, and the enthusiasm for production has also been reduced, but we have not lost confidence in the market. The boss of Youbu said that the market in the first half of the year will not pick up, but there is still a high possibility of explosive demand in the second half of the year, so it is still worthy of our expectations and preparations.
Although the current weaving market is affected by the domestic and foreign economic situation, there are some fluctuations in operation and development, but the epidemic is over Finally, the overall trend will definitely continue to advance with the adjustment of industry structure.
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