This week, there was some commotion in the raw material market. On the 5th, stimulated by the good news, crude oil stopped falling and rebounded, and polyester filament also began to rise. However, on the 8th, the market calmed down again, and this wave of operations in raw materials It’s just a “flash in the pan”. Many textile people said that without the support of terminal demand, price increases are in vain.
In May, although the number of daily confirmed cases in the United States is still high, the United States has begun to restart the economy in some areas where the epidemic is relatively mild. Some European countries are also gradually unblocking, and some companies have begun to resume work and production. So are the previously canceled foreign trade orders expected to be placed again? Can terminal demand improve? Will May usher in a market turning point?
Foreign trade has eased, but the improvement is not obvious
Recently, the editor saw a brand store selling plus-size men’s clothing on Douyin. The Douyin account published a video about receiving orders from customers in Italy and Spain. 8 Delivery is in the middle of the month. During this period, fabrics need to be purchased and sent to the customer for approval.
In addition to clothing factories, some traders also said they have received foreign trade orders. A foreign trader said: “In addition to orders for protective clothing, we have also received orders from Italy and Spain, such as gabardine and plain weave, which are used for autumn and winter. Clothing.” Coincidentally, another trader also revealed: “The domestic buyers we cooperate with have begun to resume placing orders. They are responsible for purchasing fabrics domestically and sending the fabrics to foreign garment factories for processing. Although the order quantity is different from It has shrunk a lot compared to last year, but at least this is a sign of recovery.”
However, the signs of recovery have not been transmitted to the entire textile market, and many traders still say that it is still in a state of uncertainty. In the status of single work, the work-on-one-off mode has been started, and the salary has been directly cut in half.
From the perspective of dyeing factories, the operating rate is still not high. Most dyeing factories are only about 50%, and the delivery time is about 4 days. Most of them use pongee and polyester taffeta for protection. Mainly fabrics, other conventional fabrics still have little improvement. As a barometer of the textile market, the order situation of dyeing factories has not improved significantly, which also shows that the market improvement is limited.
Furthermore, clothing It will also take some time for demand to recover, so there is also a lag in placing orders. Moreover, European and American countries can only be said to be “tentatively resuming work”. If there is a cluster of epidemics in the later stage, European and American countries are likely to adopt blockade measures again.
The United States staged “Farmer and Snake”, Sino-US relations are highly uncertain
The impact of Sino-US trade relations on our textile industry is still fresh in everyone’s memory. Last year, there was a serious lack of orders in the foreign trade market. The peak season was not prosperous and the off-season was prolonged. The culprit can be said It’s China-US trade.
Sino-US trade is uncertain and repetitive, which has a great impact on the orders received by textile companies. Although the first phase of the Sino-US trade agreement has been officially signed, whether the second phase can be successfully signed remains to be seen. It is an unknown number. From several recent events, people can’t help but feel worried: On April 30 and May 1, when Trump was asked by reporters about raising tariffs on China, he It has stated that it may increase tariffs on China. And the U.S. Food and Drug Administration (FDA) said on May 7, local time, that it would revoke the licenses of about 60 Chinese manufacturers to sell N95 masks in the United States on the grounds that the masks produced by these manufacturers cannot provide adequate protection against the new coronavirus. .
Regarding the occurrence of this series of events, after China and the United States signed the first-phase economic and trade agreement, Liu He had a phone call with the United States for the first time. The two sides expressed that they should strengthen macroeconomic and public health cooperation, and strive to create a favorable atmosphere and conditions for the implementation of the first phase of the China-U.S. economic and trade agreement and promote positive results. Both parties agreed to maintain communication and coordination.
Although this call has slightly stabilized the mentality of market participants, many traders exporting to the United States have expressed that they are afraid to take orders for masks from the United States and will not do business with Americans in the future. You need to be more cautious, after all, this “farmer and snake” incident is very likely to happen again.
Postscript
Although the current overall market atmosphere has not improved significantly, textile people do not need to be too pessimistic. This week, driven by the rise in raw materials, the market has seen better sales than in the previous period. There are some subtle signs of recovery in foreign trade, and that is the beginning of hope. For today’s market, confidence is more valuable than gold. Textile people, if you persist, I believe the future is promising!
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