On the evening of the 21st, European and American stock markets suffered violent selling, and gold and oil prices also continued to fall!
The main reason for this “Black Monday” The reason is that due to the rebound of the epidemic, many investors are worried that the second wave of the epidemic will hinder economic recovery, which has led to the panic selling of the stock market. In addition to investors, Boss Bu is also very worried about this wave of epidemic. Will the foreign trade orders that have just improved again be “cooled”? Are orders placed now at risk of being cancelled?
Foreign trade demand shrinks, and concerns about order cancellations resurface
Since September, European countries have experienced another epidemic. With the outbreak in Gao, the number of new confirmed cases of new coronavirus pneumonia in a single day continues to rise. According to reports, Europe had as many as 300,000 new confirmed cases of COVID-19 last week, breaking the highest record since the outbreak. As the epidemic continues to spread, many European countries have implemented stricter social distance restrictions.
“We have been in constant contact with customers in Europe these days, and we are afraid that if we cancel the order midway, the story of the first half of the year will happen again.” Trader Mr. Zhang said. Coincidentally, a textile boss who has been in the textile market for more than 20 years revealed: “Now we are very worried about the situation in Europe and the United States, because our customers are from European and American countries. If some European countries adopt measures such as city closures, it will be difficult for our goods to be shipped. It was shipped over and had to be canceled.”
In recent times, foreign trade orders have improved , many traders have received orders of tens of thousands of meters. This is because according to the practice in previous years, in order to prepare for the Christmas season, foreign customers will place orders in advance. The end of September to October is the time point for concentrated orders, and the rebound of the epidemic in Europe happens to occur at this time. Now traders are exporting to Europe Whether this part of the order will be canceled or delayed again due to the epidemic is one of the issues that Boss Bu is most worried about right now.
“Now we can only try to ship the goods as quickly as possible. Fortunately, the dyeing and weaving factories are not busy now. From order placement to shipment, we can do it within one week. We need to order the weaving. It will take a little longer, in short, make it as soon as possible and distribute it as soon as possible to avoid a series of problems later.” A trader lamented.
In addition to the epidemic, the appreciation of the RMB has also intensified the uncertainty of orders
The biggest worry for those engaged in foreign trade is The fluctuation of the RMB exchange rate and the recent appreciation of the RMB are a huge loss for foreign traders who have not settled foreign exchange. A foreign trade boss said: “Our net profit this year is only about 5%. Since we usually settle foreign exchange once every three months, if the RMB appreciates by more than 5% in these three months, then we will lose every penny.” No profit is made, and it may even be a loss.”
Due to the scarcity of foreign trade orders this year, many companies have agreed to customers’ requests for price reductions in order to win customers. The above-mentioned trader The businessman revealed: “Last year our profit point was about 10%, but this year it is only 5%. Although gray fabric and dyeing fees have dropped compared with last year, customers have lowered prices even more severely. In order to maintain the company’s operations, we can only I will bear the pain, but if the RMB appreciates sharply, our 5% profit will not be preserved.”
In the foreign trade market, the phenomenon of rushing for orders and lowering prices frequently occurs. The fluctuation of exchange rates has aggravated the uncertainty of foreign trade orders. Next, textile bosses need to be cautious in quoting prices to prevent profits from being diluted during foreign exchange settlement due to exchange rate changes. .
For textile bosses who have experienced the impact of the first wave of the epidemic, they are already scarred, and many of them are struggling to hold on. With the arrival of September, many textile bosses have just gone to There was a wave of inventory, but now that the epidemic abroad is rebounding, people have to worry about whether the same situation will happen in the first half of the year. But it is useless to worry too much. You still have to take orders when they come, but you have to control the risks. Of course, we also hope that the epidemic in Europe can be controlled as soon as possible. After all, only when global demand picks up can there be hope for foreign trade orders!
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