March is about to pass halfway. Is the “Golden Three” golden in the traditional peak season?
01 The market in March was not as good as expected
The recent market conditions have begun to decline, and orders have also dropped significantly compared to the previous period. During the research, the editor found that many cloth bosses reported that the current order volume has dropped compared with the same period last year, but has not actually improved due to the epidemic relaxation policy. At present, the overall weaving market is in a tepid state. Although the quantity of gray fabrics is available, the price has dropped significantly, and a fierce price war has begun again. In terms of printing and dyeing factories, since mid-February, the number of gray fabrics entering warehouses of printing and dyeing factories, which have been experiencing a warehouse explosion, has gradually “shrunk”. In March, the number of gray fabrics entering warehouses has declined again.
Although March and April are the peak seasons for the textile industry, this year’s peak season is obviously not qualified. Except for a wave of inventory at the beginning of the year, the overall performance of the weaving market was dull. Taking the operating rate of looms in various regions as an example, unlike the rapid rebound after the year, after entering March, the overall operating rate began to stabilize at more than 70%, and the upward momentum was obviously insufficient. The same is true for printing and dyeing factories. Although some dyeing factories have been in a state of liquidation, the operating rate is also insufficient and has stabilized at over 70%.
Most of the printing and dyeing orders in March were backlogged from the year before. A large number of gray fabrics were woven and shipped in the first week after the new year. After these orders were completed, the dyeing plants were put into warehouses, and the dyeing plants began intensive production. At the same time, due to the different arrival times of workers after the New Year, production cannot increase due to insufficient labor, making production particularly tight. And because workers have just returned from vacation and have not fully adapted to work, the resumption rate of dyed fabrics is also high, which greatly hinders the production speed. This is why the current printing and dyeing factories are divorced from the weaving market and are unexpectedly popular.
02 Some textile people predict that the printing and dyeing industry will soon “extinction”
In short, the current liquidation is actually an illusion. Once the printing and dyeing factory completes the production of the previous backlog of orders, the printing and dyeing factory will face a sluggish market again. Youbu bosses have also been aware of this problem for a long time. They predict that in about 20 to 30 days, the market situation of printing and dyeing factories will slow down, and the operation rate will gradually decline. A printing factory owner predicted: “I predict that in 20 days, printing and dyeing factories in other places in Jiangsu and Zhejiang will be on rotation, and in 40 days, the production capacity of local printing and dyeing factories will be lower than 70%. This is only based on my current personal experience. Predicted by the order taking situation.”
Through research, we found that overall, the market conditions are indeed not as good as expected, but from a micro perspective, some companies have bright spots in some specifications of their products, that is, the differentiation is obvious. Due to the hot market in February, most textile people are confident in the “Gold Three Silver Four”, resulting in more companies stocking up. Now that traders have finished stocking up, orders from March are far less than when work resumed in February. Raw materials were bought at high prices, but unfortunately there are fewer orders.
It will take some time for demand to recover in the post-epidemic era. The lively scene earlier is actually another wake-up call for textile bosses. Some textile bosses have previously predicted: “Even if the market is so good in February, it is very likely that everything will be in March.” Shoot, this market is very unpredictable now.”
March is already halfway through, are you still expecting to gain something from Silver Four? Although the market situation in March is indeed a bit disappointing, after all, the textile market is not relying on the “Gold Three Silver Four” and “Gold Nine Silver Ten” to usher in a wave of peak seasons. Moreover, since the beginning of the year, most of the incoming orders are for domestic sales, and foreign trade has not yet begun to gain momentum. Textile experts also predict that foreign trade will begin to improve in April. Therefore, there is still hope for “Silver Four”!
Editorial
The current market is in a very confusing state. The phenomenon of polarization has always existed. However, under the premise that the market situation in April is still unknown, textile bosses do not need to worry too much. There will definitely be orders. How to win them is still a matter of course. On their own!
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