Argentina won the World Cup yesterday and successfully won the World Cup. For Argentines, this is one of the few things worth celebrating this year.
Argentina has also raised interest rates 7 times this year like the Federal Reserve, and the rate hikes are even greater. After 7 interest rate hikes, the Argentine Bank’s interest rate has reached 60%, which means that as long as you deposit money in it, you will be Get 60% profit!
but! Even with such high interest rates, no capital has entered Argentina like it has been injected into the United States. This is because their country’s inflation rate has reached 88%, and it is predicted that Argentina’s inflation rate will eventually reach 100%! Therefore, winning the World Cup may be the only thing they are happy about this year!
central bank inflation warning
Inflation does not only affect Argentina. Since entering the post-epidemic era, countries around the world have been affected. This is also a main reason for the “decline in global consumption power” that we have always said in previous articles! As the domestic situation changes, my country’s central bank also warned of subsequent inflationary pressures in the third quarter monetary policy report.
(Source: CITIC Securities)
Generally speaking, inflation will have a very intuitive impact on price increases, which means that for weaving companies, raw material prices will definitely rise. As mentioned above, inflation will bring about a decrease in consumption power. This will lead to an increase in production costs and a decrease in product sales, which will make the operation of weaving enterprises more difficult.
It is difficult to increase the startup rate
And we all know that today, when public health factors are increasingly weakening, we can see from the textile market that many companies have received orders at the end of the year due to their optimism for the later market. However, the increase in the weaving operation rate is still relatively cautious. According to the data monitoring of Silkdu.com, the weaving operation rate in Jiangsu and Zhejiang is 61.3%. Although the market has improved, it is still difficult to increase the operation rate.
This is mainly due to the accumulation of too much inventory in the past. Before the current round of market conditions, the weaving inventory was as high as 38.2 days, rising all the way. However, after this destocking, the gray fabric inventory in Jiangsu and Zhejiang is still as high as 37.2 days. According to one To put it bluntly, the textile boss said that the inventory on the market now, even if all weaving factories stop production, can provide the people of the country with clothing for three years. Although it is a joke, it also shows that the inventory in the market is currently high.
The market suddenly hit the brakes
Speaking of this year-end market trend, it actually comes at a bad time. Since the Spring Festival holiday is earlier this year, that is to say, the holiday time for textile workers has been greatly advanced. And because everyone is now busy protecting their own safety, this wave of The market was suddenly put on the brakes.
I originally thought that as the weather got colder and everyone’s desire to buy down jackets increased, the market would improve. One boss said: “I thought it would get better in the future, but in the end, everyone stopped going out.” The biggest impact of not going out is that, No matter how cold it is, there is no need to buy clothes. Fortunately, the terminal companies have already placed all their previous orders, and many of those that need to be delivered have already been delivered, so the impact is not very big.
Many textile people are very optimistic about the market next year, but in the opinion of the editor, from now on, the market will only become more confusing. Although the factors of lockdown are gone, more uncertain factors have emerged. This requires Textile people are always vigilant.
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