“There are no countermeasures at the moment. We can only endure it for now and wait for others to take holidays, so we will follow suit!” said Mr. Chen, a textile boss who has been rooted in the market for decades. As the head of an integrated industry and trade enterprise with both domestic and foreign trade, Mr. Chen has exported fabrics to Europe and the United States in the past few years. Last year, he just opened up the Southeast Asian market, and his turnover is also rising.
As a result, in February, when the domestic epidemic broke out, he lost 10% of his domestic trade orders. In March, when the foreign epidemic broke out, he lost 50% of his foreign orders, and the remaining I don’t know when it will restart. In an instant, the market fell from the “Golden and Silver Age” to the “Bronze Age”!
Now, Mr. Chen is also quite Buddhist. Faced with the sharp decline in raw materials last week and then the rise, he calmed down and did not take action: “I hoarded a lot of raw materials years ago. After the start of the year, I saw the price was low and stocked up another batch. These two times made me lose a lot. What I care about now is not the price of raw materials, but when the customer will place the order!”
Boss Bu personally handed the “bargaining power” to the other party!
Real-time statistics released by Johns Hopkins University in the United States show that as of April 12, Beijing time, the cumulative number of confirmed cases of COVID-19 worldwide has exceeded 177 10,000 cases, and the cumulative number of deaths exceeds 108,000. The United States, Spain, Italy, France and Germany are still the “hardest hit areas”!
Faced with this horrific data, we can foresee that there is still a long way to go before the foreign trade market recovers. “No time in sight.” Domestic companies are suffering the same fate as the global market, and the share of foreign trade exports is still shrinking.
Data from the General Administration of Customs of China show that the products with the largest export trade volume from January to February 2020 were organic chemicals, textiles, electrical machinery, appliances, and electrical parts. As well as clothing and accessories, they fell by 16.5%, 18.6%, 7.8% and 18.7% year-on-year.
The “cool breeze” in the foreign trade market has also blown into the domestic trade market. Since April, the entire domestic trade market has performed poorly, causing textile bosses to have orders on hand that are only decreasing but not increasing. If we compare domestic trade and foreign trade to two human legs, if one leg is lame, how can the other leg walk well?
Therefore, many domestic traders, clothing factories and brands are cautious in placing orders and will not place orders in advance unless they are strictly needed. “We only deal with the domestic trade market. Although we still have orders, we have been worried that our customers’ customers will cancel their orders, causing our orders to be canceled without reason.” said Mr. Wang, a textile owner in Wujiang area.
Faced with this worrying market situation, many textile bosses began to take the initiative to offer profit-making sales. “Under the current market situation, we take the initiative to give bargain-price knives to customers. As long as they place an order, the price can be negotiated.” said Mr. Yang, who mainly sells imitation silk in the market.
The lack of terminal orders has caused the contradiction of overcapacity to ferment again. After the great leap forward in production capacity in the past two years, the supply of conventional products in the market is relatively abundant, but the downstream demand has not been The performance is still weak, and the price of raw materials has dropped by nearly 2,000 yuan/ton since the New Year, which has caused the fabric market price to fall again and again. “We make conventional polyester taffeta, and now the price has dropped by more than 2 cents compared with before, and some even more. If it falls further, there will be no profit.” said the person in charge of a textile company with hundreds of looms.
Landlords don’t have much “surplus food”, so they need to reduce their load to save themselves!
At present, most textile enterprise owners are caught in a “dilemma”: on the one hand, the market trading atmosphere continues to weaken, and the process of new orders is slow; on the other hand, gray fabrics Inventories continue to rise, and the proportion of working capital occupied increases. Reducing work hours has become the most direct and effective way for textile bosses.
“During the Qingming Festival holiday, we stopped more than 90 looms, and we should increase the number of downtime machines in the future.” A company that has been tired of gray fabric inventory for more than a month Boss Wang said helplessly. At present, more and more weaving manufacturers have begun to take turns, stop production, and take holidays, and the market operation is also plummeting.
It is understood that the current operating rate of Jiangsu and Zhejiang regions has dropped to about 60%, the operating rate of water-jet looms in Shengze has dropped to about 60-70%, and the operating rate of Xiaoshao circular knitting machines has dropped to about 30%. -40%, Haining warp knitting operating rate is around 60%, Changshu warp knitting operation rate dropped to 40-50%.
Overall, the major clustersThe labor situation has been declining. Although some manufacturers have recovered during the holiday after the Qingming Festival, many manufacturing companies still plan to reduce their operating hours.
“At present, everyone is still in a wait-and-see mode. We have purchased a batch of raw materials for production in the early stage. If there is a holiday all of a sudden, workers will be exhausted. However, if this market situation continues, by 4 More and more people will take holidays at the end of the month,” said a Changxing textile boss.
Editor’s Note
Judging from the current market feedback, some textile bosses said that they estimate that the market will increase again during the May Day holiday. There was a wave of boot drops.
However, the night before dawn is always the darkest. The good news has been spread in the foreign trade market: Spain, Germany, Austria, Denmark, the Czech Republic and other countries have successively stated that they will relax restrictions on restrictions. Closure measures taken in response to the COVID-19 epidemic. This also means that foreign trade people can start developing customers!
Perhaps after surviving the darkness, what we are looking forward to is the dawn!
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