Recently, the largest cloth market in the south, Guangzhou Zhongda Textile Business District, has entered a state of resumption of work, and the number of people returning to work on the first day was around 4,000 to 5,000, with a resumption rate of 40% to 50%. It is expected that the resumption rate will reach 80% by the end of March. .
The annual transaction volume of the Zhongda Textile Market exceeds 200 billion, which has a profound impact on the national textile fabric market. Taking the Shengze area as an example, many chemical fiber fabrics on the Zhongda Market come from the Shengze area, and even Some larger companies have offices, warehouses, etc. in the Shengze area. Their annual demand is tens of millions of meters, and their turnover is hundreds of millions or billions of yuan.
Zhongda is just one of many finished fabric markets that started late, but without fabric orders from them, the entire textile market is incomplete, and it is difficult to keep up with the hot and peak seasons.
We cannot escape the off-season without market goods
Due to the impact of the COVID-19 epidemic, the textile market, which should have been in the traditional peak season, has not been optimistic. At the beginning of the resumption of work in the textile industry, textile orders were not placed smoothly due to the shortage of workers in various companies. However, as the operating rate gradually recovered, the textile industry began to recover. There has been a wave of concentrated releases of backlogged orders, and a large number of factories that have not fully restored their production capacity are facing production conditions such as liquidation, congestion, and queues. However, this wave of market conditions came and went quickly. In just half a month, the textile market gradually entered a calm state.
“From the beginning of the year to now, orders have been mainly for orders, and orders for market goods are basically invisible,” said a person in charge of a weaving factory… However, the small quantity and large variety of orders make it difficult to Stir up the market and promote peak season prices. The lack of market goods is an urgent problem in the current textile market.
The booming textile market is actually an illusion. If the epidemic had not squeezed production time, this wave of orders would have only flowed through. Now this illusion is about to dissipate, and it seems inevitable that the textile market will return to the off-season again. Is there a lack of orders in the market? This is of course certain, especially for “market goods” orders. If the market wants to become popular again, it must be supported by a huge number of “market goods”.
Thespotmarketissubjecttotheflowofpeople
Everyonewhomakestextilesknowsthatfabricordersareoftendividedinto”ordergoods”and”marketgoods”.Generally,customersdonotneedtomeeteachothertoordergoods.Onlyemailandexpressdeliveryareneededtocompletetheorderoperation.Butmarketproductsaredifferent,becausethistypeoffabricisbasicallysoldinspotstores,andcustomersneedtofind,compare,inspect,purchase,etc.onsite,sospotmarketsareoftenplaceswiththelargestflowofpeople.
However,duetothepneumoniaepidemic,theseplaceshavebecomekeycontrolareas,andtheflowofpeopleisrestricted,whichnaturallyaffectsthesalesoffabrics.Moreover,therequirementsforresumptionofworkandmarketaremorestringent,andtheresumptiontimeisoftenlater.Thespotmarket,whichusedtobebustlingwithpeopleandbustlingwithpeople,isnoweitherclosedorempty.
The market fabric prices are worrying in the short term
The spot market is in a bleak situation, and orders for market fabrics are naturally unlikely to be much better. “In previous years, one to two million meters of Nisi spinning orders have been placed in March and April, but so far this year we have hardly done anything,” a trader said, shaking his head. Fabrics such as nylon and polyester taffeta have always been the main products in the market. Although their stamina has been slightly lacking in the past year or two, their “status in the world” is still difficult to shake. However, recently many textile companies that mainly focus on this type of textile have to face a situation where they have no work to do or their orders are cancelled.
In 2019, the entire market was dominated by elastic fabrics such as four-way stretch and T400, but this momentum obviously did not continue into 2020. I visited various printing and dyeing factories, large and small, and found that such orders were extremely rare. And because the spot market is under control, sales are blocked, inventory is overstocked, and funds are lacking, there may not be many spot manufacturers placing orders to replenish goods in the short term.
But we don’t need to be overly pessimistic about the future textile market. After all, clothing is a critical need , it will only delay but not disappear. In particular, the market fabrics in the spot market have large quantities, various colors, and affordable prices. They have always had a very large clothing customer group. Not only textile people cannot do without this market, but also clothing companies and clothing consumers.
Especially now, a large number of spot markets, led by Zhongda Textile Market, have gradually resumed trading, and the demand for various market goods and fabrics has gradually recovered. These orders will still be placed, but the process may be very late and slow, and textile workers still need to make sufficient preparations.mental preparation. </p
