2020 is coming to an end, and the epidemic throughout the year has had a profound impact on our textile industry. Except for companies that produce epidemic-related products, the vast majority of textile companies are struggling in an unprecedented off-season.
Orders have dropped significantly, down 20% year-on-year
The decrease in orders is very common among textile companies this year. It is common, especially in the first half of the year when the epidemic broke out in Europe and the United States, that news of various order cancellations and postponements were flying everywhere. Textile companies in the market have more or less encountered a decrease in orders, and at the same time they have to face various finished and semi-finished product inventories due to order cancellations.
According to the person in charge of a weaving company, our factory mainly produces some conventional fabrics, such as polyester taffeta, pongee and other products. This year due to the epidemic Orders decreased, and sales in the first half of the year fell by about 60% year-on-year. Another double-sided velvet trader also admitted that the order for 3 containers of double-sided velvet at the beginning of the year was also delayed.
In the second half of the year, when the epidemic situation in Europe and the United States improved, foreign trade orders picked up for a time, and many companies also took this opportunity to take on orders to balance losses. However, as the overseas epidemic situation continues to worsen and get out of control, it is difficult for the textile market to truly recover.
“This year’s annual sales will be around 30-40 million. This year, domestic trade market orders have increased compared with previous years, while foreign trade orders have shrunk by about 30%, mainly due to the epidemic, which has led to a reduction in foreign trade demand, but domestic trade has made up for it,” said a person in charge of a textile company.
Reducing foreign trade orders is normal, but not all textile companies can make up for the order gap throughout the year through domestic trade orders and the order wave in individual time periods.
“The annual sales of about 2,000 tons of raw materials and some fabrics were 20% lower than last year.”
“Sales this year are not convenient. revealed, but it dropped by 20% compared with last year.”
“Sales this year are 10 million yuan, a decrease of 20% compared with last year.”
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It seems to be a common phenomenon among textile companies that sales fell by 20% year-on-year for the whole year. So as the end of the year is approaching and the epidemic in Europe and the United States is out of control again, what is the status of textile companies?
The holiday is on the agenda, and delivery of goods with money has officially begun
The weaving operation rate among the surveyed companies is still the same Keep it at 80% or even fully open. However, “the order situation is average” and “the order volume has declined significantly”… these are the recent conditions of many companies, especially weaving companies. It is very common that the order volume is not as good as in previous years, or even lower than in the previous period. But why is the startup rate still at a high level?
“The operation rate is 100%, and the order can be placed on the 10th of next month.”
“The operation rate is 100%, The orders on hand can still be made until around January 20th.”
“The startup rate is 60-80%, and the current orders can be made until the middle of next month.”
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The Spring Festival will be on February 12 this year, but most textile companies can only maintain orders until January 10-20. Since orders ended years ago, there is naturally no need to continue production, so many companies have begun to put the Spring Festival holiday on their agenda. As the holiday time is approaching, it is of little significance for weaving enterprises to further reduce the operating rate. It is better to start production at a higher rate and stock up to avoid rising raw material prices after the new year.
In addition, the payment collection work at the end of each year is earlier than in previous years due to the special circumstances this year. Picking up goods with payment has already appeared in weaving and dyeing factories more than half a month in advance, and proactively asking customers for payment is also going on at the same time.
However, compared with the sluggish orders at the weaving end, the printing and dyeing market has performed better overall recently.
Dyeing factories are bursting with orders, and pressed cards can be seen everywhere
The order volume of the printing and dyeing market at the end of the year is There are always various uncertainties under the influence of various factors such as environmental protection, holidays, etc. The situation is the same this year, and there is also the important impact of the epidemic.
“Shengze’s dyeing factory has a lot of orders recently. Now they basically have to press the card, and 7-8 days is normal.”
“Recently I heard that dyeing factories have very long delivery times, and the products I make cannot be shipped until the holidays.”
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The situation of dyeing factories is somewhat different from that of the weaving market. Such a good situation does not seem to be what it should be under the recent epidemic in Europe and the United States. The hot situation in the dyeing factory is precisely the product of multiple factors.
Shaoxing printing and dyeing factory suspended production: In mid-December, power and production restrictions began to occur in Zhejiang. Recently, the printing and dyeing industry in Shaoxing was suspended for three days due to environmental issues. The printing and dyeing market in Zhejiang has been affected to a certain extent due to the suspension of production, and a large number of orders that are urgently waiting for shipment at the end of the year need to be produced. As a result, some orders have been transferred to Shengze, an important global textile production base, and Shengze’s printing and dyeing factories will naturally accept a large number of transfer orders.
Worried about canceling export orders and waiting for shipments: The epidemic in Europe and the United States has worsened, and news of another lockdown in some European countries and regions has been heard. It was in this environment at the beginning of the year that the textile market ushered in a wave of cancellations.Will there be order cancellations again in the European and American markets in the future? The probability is very high, and textile companies have to guard against it. Shipping quickly and nipping order cancellations in the bud is the only way. As a result, a large number of orders gathered, and the rush for shipment also exacerbated the busy scene in the dyeing factory.
The holiday may be brought forward: According to the Spring Festival this year, the holiday for printing and dyeing factories should be around January 30. However, there are widespread rumors in the early market that the textile industry’s holiday time will be significantly advanced to avoid a large number of people traveling together to increase the risk of the epidemic. Therefore, there is a possibility of an early holiday in the textile market this year. In order to ensure that orders can be completed in time before the end of the year, textile companies can only enter dyeing factories for production in advance. During the same period, dyeing factory orders have increased.
The overall performance of the textile market this year has been unsatisfactory under the pressure of the epidemic. The focus of the textile market is generally on the epidemic. Although the recent good news about vaccines continues to spread, textile companies are still not optimistic about the market in the first half of next year. Many textile people believe that the market may truly improve in the second half of the year.
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