Affected by the pneumonia epidemic, the textile industry has generally delayed the start of production this year, but the shutdown has not completely hindered sales, especially when the resumption of work is approaching. The sales of gray fabrics and the exchange of fabrics have already been in full swing. Gray fabric factories often report that gray fabrics are selling well, and dyeing factories are constantly experiencing news of warehouse liquidation. The entire textile market is in a peak season that has not been seen for a long time. Some gray fabrics and dyeing fees are beginning to move, and they are likely to take advantage of the situation to increase.
However, this wave of high expectations did not sustain the confidence of textile people. Orders have been stagnant, dyeing factories have sharply reduced their warehouse purchases, and the entire textile market seems to have reached the edge of the off-season.
Enter the position and cut it in half, there is no work to do
As a “barometer” of the textile market, dyeing factories are extremely sensitive to the number of orders in the market. When there are too many orders, trucks pulling all kinds of gray fabrics crowd the dyeing factory; when there are too few orders, there are a lot of empty spaces in the gray fabric warehouses. However, in just over half a month since the resumption of work, most dyeing factories have already experienced a back and forth between more and less orders. At the beginning of the resumption of work, due to the shortage of workers and the fact that most of the customers had not yet entered work, the dyeing factory lacked orders. However, as workers returned and various backlogged orders were placed, the factory quickly ushered in a liquidation phase. However, the dyeing factory was not busy for long, and the number of orders began to drop sharply.
Recently, the person in charge of a dyeing factory told us that when it first resumed work, the dyeing factory imported about 1 million meters into the warehouse every day. Under normal circumstances, the factory can digest about 600,000 meters a day. However, because all workers have not returned yet, the dyeing factory’s production capacity is only 60-70% of the usual level, so the entire production workshop is extremely busy. But this state lasted for less than a week, and now the factory’s daily warehouse entry has dropped to more than 400,000 meters. Moreover, most of the workers in the factory have returned and production capacity has basically been restored. This amount is completely insufficient for production.
From being too busy to having nothing to do, it only took half a month. Of course, this was ultimately due to the fact that the backlog of orders was quickly consumed, but subsequent orders could not be followed up in time.
Decreased orders and increased costs
The domestic pneumonia epidemic has hit hard In the domestic textile trade market, the severe pneumonia epidemic situation abroad restricts the release of foreign trade orders. The sharp decrease in warehouse purchases by dyeing plants is not only a manifestation of the reduction in orders from textile traders, but also reflects that the weaving and the entire finishing market will enter a state of lack of orders.
At the beginning of the work, the entire textile industry was extremely short of workers. Governments and enterprises in various places tried their best to help workers return to work. However, now that workers’ return to work is coming to an end, orders from various factories are unsustainable, and some factories are about to have a surplus of workers. Decreasing orders have reduced factory income. However, as workers have returned one after another, labor costs have risen rapidly, putting various factories under great pressure.
Actively reducing production capacity may be a common operation for textile factories to reduce production costs in the future. Workers will also turn from shortage to surplus. Reduced work schedules, increased vacations, and reduced income may occur one after another, which will also affect some employees to some extent. The enthusiasm of subsequent workers to return to work.
Under the influence of the pneumonia epidemic, the textile market after this year will not have many outstanding performances. The short-lived busyness caused by the backlog of orders did not push the textile market to the height that textile people wanted. But not everyone in the market is pessimistic about the current textile market.
“The current market situation is indeed not good, and it may not be as good as last year. But it may also be a good thing, because the bleak market situation will eliminate a group of competitors, especially those who rely on borrowing to run their companies. Waiting for competitors in the market If there are less, business will naturally be easier, and there is no need to compete at low prices, and profits are guaranteed, but this period will be very difficult,” said a textile factory owner.
The textile off-season market has not changed due to the short-term concentrated outbreak of orders. Although textile workers in the off-season have lower orders and reduced income, once they survive, it may be the peak season when competition decreases and profits rebound. </p
