One-third of 2020 has passed, and the COVID-19 epidemic that has plunged the global economy into a “dark period” has not yet subsided. According to the latest statistics on the COVID-19 epidemic released by Johns Hopkins University in the United States on May 1, there are a total of 3,271,692 confirmed cases of COVID-19 in the world, and the cumulative number of confirmed cases of COVID-19 in the United States exceeds 1.06 million.
The impact of the black swan incident of the epidemic on the industrial chain continues to ferment
Affected by the black swan event, both the upstream and downstream of the industrial chain have been affected.
1. “Oil” is born! Another oil-related company in the United States has filed for bankruptcy protection:
According to reports, the United States Diamond Offshore Drilling Company, the latest company to file for bankruptcy protection, is mainly engaged in offshore drilling contracting business. company, which has significant operations in the Gulf of Mexico. According to relevant documents, the company’s total revenue last year was US$981 million (approximately 6.94 billion yuan) and it employed approximately 2,500 people.
Affected by the price war and the new coronavirus pneumonia epidemic, many crude oil producers have shut down drilling in the Gulf of Mexico after oil prices plummeted, causing the company’s demand to nearly dry up, becoming the third oil company after Whiting Petroleum Company. Two oil companies that have received attention have filed for bankruptcy protection.
2. Business in Guangzhou is bleak, and Hubei workers are coming Back again!
In Guangzhou Shahe and Shisanhang are the upper reaches of the urban village clothing workshops. Generally, traders select the clothing they like, and clothing store owners prepare fabrics at the Zhongda Cloth Market and place orders nearby. Most of the workers here are from Hubei.
The epidemic broke out after the Spring Festival this year, causing many Hubei workers to be unable to report to work on time. At the end of March, CUHK sounded the clarion call to resume work, but the garment factories still had a “false appearance of prosperity” because they were rushing to make orders for the year before. But in April, the market order volume dropped significantly. Many textile and clothing bosses said that the order volume was at least 20-30% less than in previous years. A large number of Hubei garment workers had no work to do and chose to return home.
As the new crown epidemic in overseas countries changes from “blitz war” to The “protracted war” has a negative impact on the entire industry chain and continues to ferment. Although some countries in Europe and the United States initially stated that they planned to test the “unblocking” in May, the fact is that the recovery of the economy, trade, transportation, retail and other businesses may take a long time, which also leads to the recovery of the textile and clothing demand side.
At present, a small number of foreign trade bosses say that customers from the United States, Japan and South Korea have recently extended an olive branch and expressed their intention to place orders, but the “black swan” of the epidemic will not fly away. Enterprises also have to be cautious when accepting orders. “Currently, we still dare not accept orders from countries with severe epidemics, for fear that they will be canceled after being accepted.” Trader Mr. Chen said.
Clothing has entered the off-season ahead of schedule, and imitation silk is slow to sell! Textile Man: How about four more months? !
For fabric traders, the most common complaint recently is that customers have no orders. The reason is Clothing off-season is here.
A clothing boss said that business did not pick up before May Day, which is enough to show that the clothing industry has entered the off-season ahead of schedule. “In previous years, before May Day, the first half of the year was the most prosperous period except for the beginning of the year. This year, however, it entered May Day quietly. This off-season is a bit long. From May to August, such a long period of time makes textile people anxious. My heart is so full!”
It is said that the Shahe Business District also had a three-day holiday this year on May Day, and the market was undergoing comprehensive adjustments and Disinfection and other work. The textile and apparel industry has always been a “prosperity and loss”. Nowadays, the poor performance of the downstream apparel industry has also inhibited the improvement of the fabric industry, especially spring and summer clothing fabrics, which have been most obviously suppressed.
In April, imitation silk, the flagship product of spring and summer clothing fabrics, has been sluggish. Many imitation silk manufacturers are faced with the problem of “high inventory, low production and sales”.
A textile factory owner who produces chiffon admitted that nearly half of the There have been no orders for artificial silk for months, and the factory cannot shut down all the machines because the cost of shutting down is high and workers will be lost. As a result, the company has been in the stage of accumulating inventory recently. “There is a lot of pressure now, but customers have reported that there are no orders for clothing, so we can only wait.”
Due to the sharp drop in market demand and the large imbalance between market supply and demand, the price of artificial silk this year also encountered the “lowest price in history.” The current common market price of chiffon 75D 24T is roughly 2.20-2.40 yuan/meter, while the price in the same period last year basically remained at 3.10 yuan/meter, the price dropped by nearly 30%.
Afterwords
According to According to the traditional sales calendar of textile people, the traditional peak season in the first half of the year is generally from March to May, and June to August is the off-season. However, this year’s special circumstances have directly skipped the peak season, causing the market to spend time in the off-season.
In May, the market is still not optimistic, export orders have not yet recovered, and the suspension of orders has not been alleviated. The delivery dates of canceled orders are generally delayed, and the domestic market is showing signs of improvement, mainly focusing on autumn and winter clothing fabrics. The demand for some domestic workwear and medical fabrics is acceptable, but the transaction price is still low.
Faced with the extended May Day holiday, many textile workers are also looking forward to when the late workers will be able to To make up for the peak season…
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