In 2020, the most difficult thing will be the textile foreign trade people. Orders from Europe and the United States have dropped sharply, and some companies have turned to the Indian market. Unexpectedly, India will also Well done!
March this year was the peak moment when foreign trade companies’ orders were canceled, orders were cut, and capital chains were broken. Although the situation has improved, the cruelty of the market continues and the pressure remains. Continuing, most textile companies are holding on.
July: Textile companies are facing an order crisis again
At the beginning of May, the epidemic situation in European and American countries was alleviated, and countries began to resume work and production. Some companies have received notices of proofing and sending samples from European and American customers, and some have received actual orders. However, it is July and has entered the traditional textile off-season. In addition, the epidemic situation in European and American countries is still quite severe, and there is a second outbreak. The danger is that European and American orders are in crisis again.
“At the beginning of May, we received an order of 200,000 meters all at once, from American customers. However, now European and American customers are silent again. There are still proofs, but actual orders Not now. We still have some loose orders on hand from Southeast Asia.” A person in charge of a foreign trade export company that produces Tencel and rayon revealed.
Similarly, a trader who sells four-way elastic, pongee, and polyester taffeta said helplessly: “Now, not only foreign customers, but also domestic garment factories and brands are very cautious when placing orders. , it is the off-season of the market again, now we have no orders on hand, and we are working hard to develop new customers.”
Faced with such a deserted market, textile bosses began to take the initiative to sell at a profit. “Under the current market situation, we are basically begging customers to provide some fabrics, and the price can be negotiated.” A cloth boss who specializes in imitation silk said.
Export orders are pitifully few, but the domestic trade market is not optimistic either. In recent years, domestic demand for clothing has been shrinking. Especially this year, the epidemic has disrupted the production rhythm of clothing companies, resulting in stagnant sales and a very difficult situation. This can be seen from a series of news events.
On the evening of June 19, La Chapelle, known as the “Chinese version of ZARA” and the first domestic A+H-share listed clothing company, La Chapelle Clothing, a wholly-owned subsidiary Co., Ltd. plans to sell its 100% stake in Taicang Xiawei Warehousing Co., Ltd. to Shanghai Shihuai Logistics Co., Ltd. for a transaction consideration of approximately 725 million yuan.
Recently, a clothing factory in Haizhu District, Guangzhou ran away. The boss left a letter and the factory was vacated overnight! Fifteen workers have not been paid their wages, and the owner of the garment factory even borrowed 150,000 from the factory employees!
Terminal orders are missing and overcapacity breaks out again
The decline in both domestic and foreign trade orders has led to the re-emergence of the contradiction of overcapacity. After the Great Leap Forward in the past two years, conventional products are now everywhere in the market, but downstream terminal demand But it keeps shrinking. Entering July, the production and sales of textile enterprises are difficult to level off, and inventories are showing signs of rising. Judging from the data monitored by China Silk City Network, the inventory of gray fabrics in Jiangsu and Zhejiang is about 45 days old, which has reached the highest level in the past three years!
With the traditional off-season and the upcoming high temperature season, cloth bosses are increasingly willing to reduce production and take holidays. The current market There are more companies eating porridge than eating meat, and most companies only maintain some casual orders and small orders. “Demand is not good, and raw materials have been falling. Our gray fabric prices have dropped by 30 cents this year, and the prices for selling goods are even scarier. No matter how you calculate it, it is a loss.” A family owns more than 100 weaving companies The person in charge of the weaving factory said. If we continue to produce blindly, inventories will become higher and higher, and more and more working capital will be occupied. In this case, reducing work hours and taking holidays have become the first choice of many bosses.
“Currently, many manufacturers are in a wait-and-see mode, including us. Now we have stopped half of the machines, and the workers also take one week off every month. If the surrounding manufacturers directly take holidays, we will also There will be a holiday. The inventory is too high, and the price of raw materials is also unstable. It may depreciate. If the market continues to weaken, it feels like many manufacturers will have a holiday.” A manager of a factory with more than 70 looms revealed.
Editor’s note:
Due to the great leap forward in production capacity in the past two years, the production capacity of gray fabrics has Due to factors such as oversupply and the recurring Sino-US trade war, my country’s textile industry has long been riddled with holes. Textile workers have been walking on thin ice in the past two years and have had an extremely difficult time. The COVID-19 outbreak has been going on for 4 yearsIn August, the demand for textile and clothing was hit hard again. Both domestic and foreign trade entered a downward trend again. The textile industry chain also suffered both prosperity and loss. From raw material companies to clothing companies, they were all affected to varying degrees. In the off-season from July to August, the textile industry will continue to be under high pressure. Textile people need to consciously control production costs and strive to survive this off-season.
</p
