“Recently, I only ship 10,000-20,000 meters of goods every day, and the inventory cannot be reduced at all!”
“In our area Overcapacity has begun again, and Jinjiu feels like it has run away!”
“Recently, we can’t run out of fresh gray fabrics, and we are weaving more and more!”
……
Entering September, domestic demand and foreign trade markets have rebounded to varying degrees. Textile bosses also said that they have more or less orders on hand. Although the order volume is not as good as the same period last year, the market still has demand support. In the middle of the year, the market’s transaction atmosphere It is not heating up like in previous years, but is still “cooling down”.
The inventory has reached 6 million meters, and all the money is stuck in the inventory!
Recently, a textile production boss complained to the editor: “The current inventory in the factory has reached 6 million meters, which is almost our output for two and a half months, and the value is at least 13 million yuan. Although there are market goods or orders every day, it cannot offset our production volume at all, but because the bank has loans, we cannot stop.”
Since this year, due to the epidemic, Due to the impact of the epidemic, most textile companies are experiencing a lack of orders and a significant reduction in corporate income. In particular, companies with bank loans are under greater pressure. According to data, in the first eight months of this year, various loans in the banking industry increased by 15.2 trillion yuan, an increase of 3 trillion yuan year-on-year. Among them, manufacturing loans increased by 1.8 trillion yuan, an increase of 109.2 billion yuan more than the total of the past four years. Yuan.
It can be seen that under the epidemic, funds have become a shackles tying up the operations of enterprises, and various financing channels have also become “life-saving straw” at this time. But because of this, these companies have no choice but to maintain high-load production under the pressure of high inventory.
The person in charge of a weaving factory in Changxing area that has just resumed work also said: “The factory has been on vacation for more than half a month and can only start work. Now it is weaving inventory every day, and the orders are all 1 -A small order of 2 kilometers is under great financial pressure.”
Since mid-August, the transaction volume of autumn and winter clothing fabrics has improved, and many hot products have appeared on the market, such as Four-sided elastic, T400, T800, imitation memory, suede, and even Oxford cloth, cool silk cotton, etc., which have been popular recently, have begun to show “fatigue” as this market continues.
It is reported that the transaction volume of these autumn and winter clothing fabrics has dropped recently. Some trading bosses said that this year’s orders from clothing factories have shrunk more than in previous years, and no one dares to stock up in advance.
According to sample enterprise data monitored by China Silk City Network, the current gray fabric market in Jiangsu and Zhejiang is still as high as about 44 days. Many textile bosses said that the factory inventory has been around 2 months. Poor capital turnover under high prices has become the biggest problem in maintaining normal production and operations.
The foreign trade market is recovering, but this country is “playing tricks” to reduce its dependence on Chinese raw materials!
Although the current weaving market is facing greater resistance to inventory destocking, it has to be said that the foreign trade market is still recovering slowly.
“The recent epidemic has had less and less adverse effects on our Ministry of Trade. Next, our weekends may have to be shortened, and there are more orders.” A trading company the salesman said.
In September, due to the end of the European market holiday, many economic activities continue to unfold, and orders are also being placed one after another. In addition to the reordering of autumn and winter clothing fabrics, the proofing of next year’s spring and summer clothing fabrics , Inquiry work is also proceeding steadily. “Recent domestic trade market orders are not as good as the previous three months, but foreign trade market orders are recovering, and the factory has maintained 100% operation.” A manufacturer mainly engaged in rayon and Tencel fabrics said.
Although the foreign trade market is recovering, there are still “stumbling blocks” that affect the full recovery of the market. .
According to reports, in order to enjoy the preferential policies in the free trade agreement signed with the European Union, the President of Vietnam recently signed a resolution No. 115/NQ-CP to promote the development of supporting industries. Within ten years, 2,000 companies will be created that can directly supply parts and components to multinational companies to ensure that these large companies can operate in Vietnam.
Le Jin Chang, President of Vietnam Textile and Apparel Group, said that the group has concentrated on negotiations with Uniqlo, H&M, Zara and other suppliers to shift the supply of raw and auxiliary materials to Vietnam, aiming to meet the requirements of EVFTA. requirements regarding origin and thus benefit from them. It is reported that nearly 70% of the raw materials currently used in Vietnam’s garment manufacturing industry need to be imported, most of which come from China.
Since the Sino-US trade war kicked off in 2018, many…Traders choose to import fabrics from China, process them into clothing in Vietnam and then export them to end customers. This is undoubtedly a powerful tool to avoid tax increases. Now that the free trade agreement between Vietnam and the EU is signed, it will inevitably accelerate the layout of Vietnam’s own textile industry chain and reduce its dependence on Chinese manufacturing!
“Many of our orders for clothing fabrics are exported to Vietnam and other places. If this market share is lost, it will have a huge impact on us.” said Mr. Liu, a foreign trade boss.
The editor has something to say
According to the market understanding, the current textile market is still relatively tepid. Although the market is in seasonal During the initial sales stage, the order volume has increased, but as the operating rate rebounds, it becomes more difficult to balance market production and sales.
Conventional products are in “massive” inventory. In the process of continuous sales, the sustainability of hot-selling products in the recent stage is not as good as the same period in previous years. This also makes it difficult for the market to rebound significantly this year. Phenomenon. The recovery of the foreign trade market is particularly important. However, the current negative factors such as food rush in Southeast Asia, Sino-US trade friction, and the spread of overseas epidemics still exist. Perhaps textile people need more patience to wait for the dawn of a comprehensive improvement in the market!
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