Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News [Frontline Research] “No-shows” on pre-holiday orders, “busy” destocking, soaring start-up rates… A preliminary study on the current situation of Shengze’s textile market

[Frontline Research] “No-shows” on pre-holiday orders, “busy” destocking, soaring start-up rates… A preliminary study on the current situation of Shengze’s textile market



Following the gradual opening of the Shengze and Keqiao textile markets, Hangzhou, Guangzhou and other clothing wholesale markets have also begun to reopen, and the upstream and downstream are working hard to r…

Following the gradual opening of the Shengze and Keqiao textile markets, Hangzhou, Guangzhou and other clothing wholesale markets have also begun to reopen, and the upstream and downstream are working hard to restore the previous work speed, but the COVID-19 epidemic began to spread rapidly around the world.

The company is overwhelmed under the pressure of the company, capital chain and other pressures. The orders and fabrics prepared before the year are all at a standstill, while other cluster markets have started operations. Customers will be lost and the capital chain may break at any time. As one of the largest textile cluster markets in China, Zhongda Cloth Market currently has more than 20,000 merchants. With the market as the center, it has formed a textile and garment industry including more than 30,000 large and small garment factories, workshops, and shops. gathering area.

Contrary to the shutdown status of Zhongda Cloth Market, Nearly a month after the market opened, the textile market in Shengze has been gradually recovering, but it faces many problems. After all, everything is difficult at the beginning. The 2020 epidemic suddenly broke out, and the textile market did not have the expected “good start”. Market confidence There is also suppression to a certain extent. So let’s take a closer look at the current situation of the textile market in Shengze area.

Production capacity has gradually recovered, and the operating rate has increased significantly

At present, the domestic epidemic has been effectively controlled , the return rate of workers has greatly increased. Although the recruitment problem is still severe, compared with last week, the operating rate of the weaving market has rebounded significantly this week. According to statistics from China Silk City Network, the current operating rate of looms in Shengze is about 72%, an increase of about 37% from 45% last week.

In the survey, many business owners said At present, the situation of resumption of work has improved significantly, and the operating rate of most enterprises is already above 70%. Some enterprise leaders even said that the factory was mostly filled with migrant workers. Since the epidemic was more serious before, this time All employees were recruited from locals, and all workers were in place on the first day of resumption of work, with a 100% resumption rate.
In fact, some personnel in technical positions cannot be replaced at will. After all, they have skilled skills and rich experience, and are very familiar with the operation of the factory, and it is not easy to recruit workers for technical positions in a short period of time. . In fact, the recruitment problem during the epidemic is still difficult. There is a shortage of personnel in various positions. The management needs remuneration, the workers need wages, and production needs costs. Weaving companies will also face many difficulties after they resume work.

Orders were mostly from the year before, and imitation silk and pongee performed well

In the conversation with Boss Bu, I actually heard their panic. Due to the spread of the epidemic across the country and around the world, the textile market was expected to see “gold, three, silver and four” after the start of the new year, but it was expected that the appointment would be missed. Most companies said that the orders they are making now were signed with customers years ago. After resuming work, they have received very few orders. The market seems to have entered the off-season in advance.

We have resumed work, and we are now seizing the time to produce and deliver goods as soon as possible. The order receiving situation was still quite good a year ago, but now it is difficult to receive new orders, and customer demand has dropped significantly.”
At the same time, a company specializes in polyester taffeta. The boss of Debu also said that he has been a bit panicked recently. Domestic trade is rushing for goods everywhere. It looks very lively, but in fact, he can’t receive orders. The recent shipments are all orders from the year before. The market is not very good and he is a bit nervous. .

Although the market order situation is indeed unsatisfactory, compared with the same period in previous years, the performance of artificial silk, as a mainstream product in spring and summer, is still remarkable. At the end of last year, a wave of artificial silk market broke out. The market was dominated by artificial silk, which brought a successful end to the textile market in 2019.

Continuing to the present, although market orders and order volume have been reduced to a certain extent due to the impact of the epidemic, imitation silk has maintained its status as a “cash cow” in the textile market in the first half of the year. Still hasn’t been changed. At the same time, pongee has also performed quite well in the recent stage. Many companies have admitted that the sales of pongee this year are good. The orders for pongee in the market are outstanding, and it seems that they are going to get rid of the “bad cloth” label last year.

The epidemic is spreading globally, and there will be resistance in the market outlook for foreign trade exports

As of 12:00 on March 7, more than 20,000 cases of the new coronavirus have been diagnosed in 94 countries around the world, with South Korea, Iran, Italy, and Japan being the most serious. According to the latest news from Italy’s La Repubblica, the blocked areas except Lombardy In addition to the region, there are 14 provinces in other regions. A quarter of Italy’s population will be affected.

Japan, South Korea, and Italy have always been China’s important textile exporters. Now that the epidemic is concentrated in these countries, it is inevitable that It has had a certain impact on China’s textile foreign trade market. After research, most companies said that the foreign trade orders from years ago will basically not change. The arrival time may be slow due to the impact of logistics, but now it is difficult to accept foreign trade orders, and the situation is worse than in previous years. Sino-US trade will become more tense this year.

But there is still a lag in the market, and the impact will not be immediately apparent. One main business is four-sided elastic and pongee. The person in charge said: “The impact has not yet been seen. There will be a process, but it will still have an impact to some extent. Business is not easy to do now. Countries in Southeast Asia and other countries are rushing for orders. The economic situation is also unclear, and there are negative factors. With so many, foreign trade is really difficult to do. ”

Raw materials continue to fall, and buying and using as you go is still the main strategy

Since the Spring Festival this year Since then, due to the outbreak of the epidemic, the resumption time of weaving manufacturers has been delayed, but polyester manufacturers have continued to produce, and the inventory of polyester filament has reached a high level in recent years. The inventory of polyester filament is high, but the demand is seriously insufficient, resulting in The price of polyester filament has been in a downward trend in recent times. Last week, due to the effective increase in the production capacity of weaving manufacturers, polyester production and sales recovered slightly, and the price also climbed compared with the previous period. However, overall, the increase was not large. Polyester filament It is still in a weak consolidation pattern. As of now, the price of polyester filament POY products is around 6,550 yuan/ton, FDY products are around 7,125 yuan/ton, and DTY products are around 8,450 yuan/ton.

For polyester filament, which has been in constant decline, weaving manufacturers still adopt the method of buying and using as needed. The main measures are based on the mentality of buying up rather than buying down. On the other hand, weaving manufacturers are worried about the future of the textile market. Polyester prices still have the risk of falling.

A person in charge of anti-static fabrics expressed his true feelings: “Due to the epidemic, it is estimated that the market will hardly improve in the first half of this year. On the one hand, in terms of domestic trade, the demand for spring clothing has been cut off. Summer clothing sampling is not very active right now, and there is also great pressure from foreign trade. Overall, the market will not be particularly good this year. ”

At present, the production capacity of the weaving market in Jiangsu and Zhejiang regions has recovered well, but the main problem is the difficulty in receiving orders and foreign trade exports caused by the epidemic. Pressure. The editor believes that the market may be worse in the first half of the year, but market demand still exists, and there may be retaliatory consumption in the second half of the year.

In terms of foreign trade, It is reported that a total of 33 factories in Cambodia have applied to the Ministry of Labor to suspend operations due to shortages of raw materials, affecting nearly 20,000 workers. If the epidemic in China is not resolved, 200 factories may apply to suspend operations! It can be seen that China, as a world manufacturing A big country has an advantage in raw materials, and the rigid demand still exists. Fabric bosses don’t have to worry too much, wait for the opportunity, spring will surely bloom.

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This article is from the Internet, does not represent Composite Fabric,bonded Fabric,Lamination Fabric position, reproduced please specify the source.https://www.tradetextile.com/archives/22060

Author: clsrich

 
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