Recently, according to feedback from cotton textile companies in Jiangsu, Henan, Hebei and other places, inquiries and shipments of fabrics and gray fabrics have softened since mid-January, and some spinning mills, weaving and clothing companies will enter holiday shutdowns around the end of January. rhythm, consumer terminals began to waver and gradually passed upstream. Although the current product quotations of raw material factories and various light textile markets in coastal areas remain stable, market sentiment has become differentiated. It has adjusted from a “seller’s market” to a “buyer’s market” before mid-January. Fabric factories and middlemen who are willing to stock before the Spring Festival Continuously decreasing.
A medium-sized textile company in Zhengzhou, Henan Province said that although the transaction of gray cloth and cotton yarn has slowed down significantly compared with previous weeks, it will not lower the ex-factory price before the Spring Festival. The inventory of gauze is low this year (only 7-10 days), which does not occupy a large amount of working capital; secondly, the current cost of setting up the machine and stocking gauze is relatively high, and there is not much profit margin, so the willingness to lower the price is naturally low; thirdly, The textile market continues to be optimistic about the first half of 2021, and repeated adjustments to quotations are unacceptable to customers, which is not conducive to post-holiday sales; fourth, this year, the gauze stocks of traders in various light textile markets in Guangdong, Jiangsu, Zhejiang, Shandong and other places are relatively low. As long as the domestic epidemic situation is effective Prevention and control, Sino-US relations do not deteriorate, and a large amount of intermediate links are expected to replenish inventories after the year, which will play a “fueling” role in making up for the increase in gauze prices.
Amid the bullish sentiment on textile raw materials after the Spring Festival, some large textile companies have a somewhat cautious and conservative view, believing that the market has not returned to normal and the sustainability of the return of foreign trade orders remains to be seen. The additional tariffs imposed by the United States on Chinese textile and clothing imports have not been cancelled, and the trend of “de-Sinicization” of US textile and clothing brands and retailers will be difficult to reverse in the short term. The broad ban imposed by the United States on Xinjiang cotton products will have a short-term impact on my country’s textile and clothing exports. The Biden administration has launched a huge fiscal stimulus plan, and the trend of the RMB exchange rate is very important. Once it enters the appreciation channel again, it will be more difficult for textile and clothing companies to receive orders.
At the same time, the recent COVID-19 epidemic situation has become increasingly complex, and the epidemic spread from multiple points has sounded the alarm to all walks of life, which has a positive impact on the textile industry, which is in a favorable atmosphere. The operations of enterprises have also been put to the test, and all regions are working hard to ensure local safety with strong vigilance and strict prevention and control measures.
Zhangjiagang, Yancheng, and Nantong in Jiangsu Province are clustered with small and medium-sized enterprises focusing on spinning, weaving, bedding, and cotton-related toy products. The number of textile workers is large and they come from a wide range of areas. The Spring Festival is approaching, and although local governments and companies have taken various measures to control movement, they still cannot implement a “no movement”. Judging from the situation, some employees still plan to return home before the Spring Festival. The flow of employees during the holidays will have a certain impact on corporate operations:
First, if employees return to work from other places, they are from China, In high-risk areas, more than two weeks of quarantine and observation will inevitably reduce the startup rate of enterprises and increase the difficulty of epidemic control;
Second, the local epidemic and imported cases spread from multiple points across the country The epidemic has restricted the production and marketing decisions of business operators. Once an epidemic occurs locally or within the company, small and medium-sized textile enterprises with small scale and poor ability to resist risks will be under huge pressure. In this regard, for the sake of safety, some companies have minimized recent orders, raw material inventory and product retention, while some small and micro enterprises would rather do OEM processing and take small orders, and try to avoid taking large or long orders;
Third, raw material prices are facing challenges, and companies’ ability to cope with risk control costs will be weakened.
According to reports from enterprises, in the past three or four months, the production, supply and marketing situation of both polyester and cotton yarn has been good due to the support of the market outlook. Once the impact of the epidemic changes, especially in the light textile industry clusters in Jiangsu, Zhejiang and Shanghai, it is very difficult to control. If an epidemic occurs and requires isolation for half a month or even longer, it will inevitably affect the production, sales and circulation of textiles.
Therefore, to objectively analyze the textile market under the multi-point epidemic situation, no matter where you are in the supply and demand market, you must assess the situation and make scientific and pragmatic judgments and decisions. </p
