Exclusive news from China Cotton Network: Domestic cotton textile mills, fabrics and clothing companies produced and sold smoothly before March this year, and the company’s operating rate was high year-on-year, which triggered a sharp jump in floral yarn prices after the Spring Festival, and during the Spring Festival The overall surge in crude oil, energy, chemicals and other commodity futures is another support point. In late March, the quotations of cotton yarn, gray fabrics, etc. began to fall following ICE and Zheng Mian. The phenomenon of overstocking of cotton textile factories became more and more prominent. Fabrics, clothing and foreign trade companies received orders, and the profit situation took a “sudden turn”. Pressure began to rise from the consumer terminal level. Passed upstream.
Some textile companies in Jiangsu, Zhejiang, Henan and other places lamented that “the wind direction has changed”. On the one hand, the orders received from December 2020 to February 2021 were due to The sharp drop in the prices of cotton and cotton yarns has led to implementation difficulties. Cloth factories, fabric and clothing companies have put forward requirements such as lowering contract prices and delaying delivery. On the other hand, new orders face various payment methods such as credit and payment terms. Due to the impact of the U.S.’s extensive import ban on Xinjiang cotton products, the sharp fluctuations in the RMB exchange rate, and the wide opening and closing of prices of raw materials such as cotton, polyester staple fiber, and viscose staple fiber, cotton textile companies have become increasingly cautious about medium and long-term orders.
According to feedback from textile and clothing traders in Guangdong and Zhejiang, the cancellation and delivery delays of some European and Japanese orders have increased significantly since mid-March, and export companies are increasingly worried. . Industry analysis: First, the third wave of the epidemic in Europe is severe, and many countries have strengthened prevention and control measures. “City closures” have caused a great impact on trade, transportation, etc., and textile and clothing contracts have been forced to suspend execution or cancel; second, China-EU relations have tightened, not only The delivery and execution of early orders have encountered resistance, and the implementation of orders in the second and third quarters of 2021 will also be difficult to smooth; third, after the Spring Festival, the prices of cotton, viscose and other raw materials and spinning mills rose sharply, while fabrics, clothing and consumer terminals increased Facing pressure from foreign trade and domestic buyers, the industrial chain transmission was blocked, so low-profit orders were voluntarily abandoned by downstream cotton spinning companies. </p
