In the blink of an eye, the first half of 2020 is over. In the past six months, the textile market has experienced the strongest test. In particular, the foreign trade market has suffered a series of blows, and orders have been directly “Clear”. In May, as overseas countries gradually restarted their economic activities, the market economy pressed the “start” button.
The international market, which has been dormant for a long time, is showing signs of recovery. Market orders have been placed in small batches, and foreign trade companies are also experiencing “good rains after a long drought”, but this is still not enough to make the current situation The market “quenches its thirst”!
With “a little bit” of order support, the phenomenon of foreign trade companies taking turns to take breaks has decreased!
Now I ask foreign trade companies, how are the recent orders? The most common answer is: There are a few orders being made! “A little bit” seems to have become a new word in the foreign trade market.
“I can’t say that I have seen signs of market recovery, I can only say that the orders now are a little better than before.” A king who has been issuing foreign trade orders for sofas for more than ten years always said.
In mid-May, with the restart of economic activities in Europe and the United States, many textile bosses said that foreign inquiry orders began to increase, and orders from a few companies were increasing. A foreign trade boss in Wujiang area who makes men’s clothing fabrics said: “Previous orders canceled due to the epidemic and orders that were stopped during production have been rescheduled.”
In June, the foreign trade market is still maintaining In this “little bit” state, large orders are relatively lacking in the market, and orders of more than 10,000 meters are mostly orders. However, this has slightly eased the phenomenon of some companies that were originally taking turns.
A foreign trade salesman said: “Originally, the company started to have one day off and one day off from April. Recently, I have been working on some orders, so I have been busy for a few days and have one day off.” In addition, a foreign trade company boss also said that some goods are being arranged to be released. “Although the order volume this year will be smaller than previously expected, there are still orders being made. At present, all we are making are spring and summer fabrics for next year.”
Compared with the domestic trade market, orders in the foreign trade market are more planned, and orders generally need to be placed about six months in advance, so Even if foreign economic activities resume, it may take some time for new orders to be reflected in fabric orders. This has also led to more inquiries and proofing in the current market, and most of the orders placed are small orders.
Although the foreign trade market has improved, for textile bosses, the stone has not completely fallen. After all, the sudden health and safety incidents in the first half of the year have had a huge impact on production and consumption in various industries around the world. and investor mentality have caused a certain degree of suppression. At present, the demand side has picked up, but the ongoing epidemic and the unoptimistic economic and trade background continue to pressurize the foreign trade market!
Many countries continue to implement the “football ban” and suspend plans to resume work and production
The epidemic will affect the textile industry this year The industry’s biggest “black swan” originally thought that this global disaster was getting better. However, when the number of confirmed cases worldwide exceeded 10 million, in order to curb the resurgence of COVID-19 cases, many countries began to continue to implement “football restrictions” and suspend the resumption of work. Production resumption plan:
1. More and more states in the United States are gradually tightening restrictions: On June 28, California announced the closure of bars, restaurants and other places again; New York State Governor Treasury Mo also mentioned the possibility of re-imposing restrictions on restaurants and other public places;
2. Australia reversed its recent decision to extend the border blockade for three months (to September 17) , and changed it to indefinitely! Until the vaccine is officially available;
3. Parts of Melbourne are blocked again: Due to the high community transmission rate of the new coronavirus, 10 postcode areas in the west and north of Melbourne will be blocked before the end of July ;
4. “Mask Mandatory Order” will be implemented in some areas of Iran: On the 28th, it was stated that starting from next week, “Mask Mandatory Order” will be implemented in some areas of Iran. He also said that some provinces may re-implement restrictive measures.
“Originally we placed our hopes on the second half of the year, but judging from the current epidemic situation, I feel that The pressure in the first half of the year is also great. Many of our customers were originally from Spain, but there have been no orders since April this year, and the market is not optimistic.” said a foreign trade salesperson in Wuxi.
It is difficult to destock and it is easy to accumulate inventory, and the imbalance between supply and demand of gray cloth is increasing
In June, especially in the second half of the year, weaving enterprises It is generally reported that sales volume is gradually declining, shipments of most varieties are slow, most manufacturers ship goods sporadically, it is difficult to guarantee daily production and sales, and product inventory is on the rise.
Because of this, during the Dragon Boat Festival that just passed, many textile bosses chose to take a 2-3 day holiday, and some took a longer holiday of 7-10 days. Thereby easing inventory pressure. However, in the face of sluggish downstream demand, the reduced production capacity during the holidays can only be said to be a drop in the bucket.
“Currently, the factory has been stocking up for 2 months. The sales of orders have been poor recently, and the inventory has been As for the rise, July is originally the off-season, so I can only endure it. “Mr. Chen, the person in charge of a polyester taffeta manufacturer said.
With the arrival of the off-season, both domestic sales and foreign trade markets are suffering from the pressure of shrinking orders. Although the foreign trade market Due to the suspension of early orders, the original rhythm has been disrupted. Not only the gray cloth end, but also the overall inventory of the clothing end this year is larger, so orders are more cautious.
Editor’s Note
Taken together, the biggest challenge and difficulty facing the global textile industry is how long the epidemic will last. Nowadays, companies in various countries are not resuming work simultaneously, which also affects the normal operation of the global supply chain. In addition Sino-US trade tensions are once again tense, which is also a huge challenge to textile exports. Although exports to the United States have not yet fully recovered due to the epidemic, this is like a time bomb and there is still a certain resistance to the recovery of the foreign trade market.
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