Affected by the pneumonia epidemic, the entire textile industry has been stagnant for more than a month. This has not only hit upstream textile production, but also severely restricted downstream demand. Although the market has recently ushered in the resumption of work and production, many textile people are not optimistic about the market under the raging epidemic. However, the market has suddenly shown a peak season-like market recently.
A dyeing factory in Shengze district resumed work on February 20. It only took four or five days since the start of work, and nearly 5 million meters of gray fabric was delivered to the warehouse. This dyeing factory has more than 100 dyeing vats, and under normal full-load production conditions, it can process more than 600,000 meters of gray fabric a day. However, due to the unsatisfactory situation of workers’ resumption of work recently, the entire factory’s production capacity has only returned to about 60-70% of the previous level.
Even if the dyeing factory no longer accepts gray fabrics, it will take about 10 days to fully digest the 5 million meters under full load. However, new gray fabrics need to be brought into the factory every day. In addition, the production capacity is insufficient, and the delivery time is very short. It’s been more than 20 days. This hot situation makes textile people feel like they are back in the peak season. So what is the specific reason for this situation?
Order backlog
Resumption of work concentrated outbreak
For “food, clothing, housing and transportation”, people always need to wear clothes. The demand for clothes will only be postponed, but it will not disappear. At present, most of the orders in the market were placed years ago. Many people were not optimistic about these orders, thinking that they would be canceled due to delayed delivery.
But in fact, the impact of the epidemic is huge and it is a force majeure. The entire textile industry chain has shown great tolerance and understanding between the upstream and downstream. In addition, although the epidemic has interfered with factory operations, the actual shortened production time is still limited. In the past, dyeing factories would normally produce around the twelfth day of the first lunar month, but this year it is mostly around the twelfth day of the first lunar month. Although it was delayed by about 10 days, due to the long textile industry chain, normal orders will leave a certain amount of time during operation. If all links are closely caught up this time, 10 days can be completely caught up.
Most of the orders placed before the year have not been cancelled, but have been backlogged for a long time. There was a concentrated outbreak at the start of production. Coupled with the orders placed after the year, the dyeing factory will become even more crowded!
Imitation silk is the main industry
The traditional peak season has reached
After the new year, the textile market has always been dominated by imitation silk, and in the first half of the year The artificial silk can also be called a “money tree”. Imitation silk orders have never been absent from the textile market in the first half of the year, and this time is no exception.
In 2019, the textile market was in a downturn, and the price of imitation silk fabrics fell sharply. Taking conventional chiffon as an example, the price of 75D 24T chiffon was 2.7 yuan/meter, and the price of 28T chiffon was 3.3 yuan/meter. However, as orders for imitation silk have improved recently, the prices of such products have also risen. The current price of 24T chiffon has risen to 2.9 yuan/meter, and the price of 28T chiffon has also risen to 3.5 yuan/meter.
Among the dyeing factories with huge orders above, most of the incoming gray fabrics are twisted products such as imitation silk. These fabrics are mainly used in the upcoming spring and summer clothing market. Although the pneumonia epidemic has severely hit the offline clothing market, online clothing sales have been extremely developed and will make up for this loss. The impact on the artificial silk market is limited, and the traditional peak season is here as scheduled!
Production capacity is the first to recover
Attract orders to be placed span>
When factories resume work under the epidemic, the biggest impact on the operating rate is the return of workers. Because there are differences in the implementation of blockades in various regions, village groups, etc., it is often the case that workers cannot leave their hometowns or cannot enter their workplaces. Especially in areas with key epidemic control areas, it is generally difficult for workers to return, or they need to self-isolate when they return. a period of time. This has a great impact on textile factories with mainly non-local employees.
Although the dyeing factory operation rate mentioned above is 60-70%, this is already very high compared to other textile companies. Because most of the workers in their dyeing factory are from the province, the epidemic prevention and control requirements are much lower than those in other regions. They do not need to be quarantined and only require health observation, so the production capacity can be restored quickly. In many other surrounding dyeing factories, workers are mainly from other provinces, and many even come from key epidemic control areas. It is not surprising that the operating rate remains at 10% to 20%, or even completely stagnant.
When other surrounding factories are still in a state of shutdown or semi-stop production, a dyeing factory that can produce normally is naturally attractive enough for customers to place orders.
The performance of some printing and dyeing factories has been relatively impressive recently, and it seems to be a bit of a peak season, but in fact this optimistic situation only occurs under a specific background. According to the person in charge of the dyeing factory, after an explosion of orders for several days, the number of gray fabrics entering the warehouse began to gradually decline. Therefore, we still need to be alert to the possible textile off-season market!
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