2020 is coming to an end, but the market at the end of the year is still facing various difficulties. 2021 is coming, what will the market be like in the coming year?
Rising raw materials: not losing money has become the biggest luxury
While profits are being compressed to the extreme , raw material prices began to rise on a large scale. First came nylon, spandex, and finally polyester filament. The price of gray fabrics also increased to varying degrees driven by raw materials.
Trader Manager Yang complained that there was no profit from taking orders now, and the price of raw materials has risen again, making the cost more expensive. Some orders have even lost money. , now it is the greatest luxury to be able to finish a few orders in hand while maintaining capital.
Freight transportation is difficult: Containers have to be “lotted” to try for luck
The goods are made and they want to be shipped out But it is a troublesome thing.
The resurgence of the epidemic abroad has greatly affected local production, and the demand for Chinese manufacturing has only increased. Coupled with the lack of overseas manpower and the inability to unload cargo, a large number of containers have been piled up in European and American ports. Containers “go and never come back”, which also makes many cloth bosses watch a large number of orders and produced products, but they just can’t be shipped out. This situation has lasted for half a year. For this reason, exporters’ advance booking time has been continuously extended, from one week in advance to one month in advance. Sometimes they even need to lottery to try their luck.
As the end of the year approaches, the situation of “hard to find a box” has not improved, and has even intensified.
The price is difficult: if the price is lowered, the money will be deducted
An imitation silk fabric manufacturer Mr. Wang, the person in charge, said that the export market of imitation silk this year is not good, resulting in a large amount of inventory in the market and a serious oversupply. Therefore, traders often push prices very low, with almost no profit. Not only that, while keeping prices down, there are also all kinds of nitpicks. In previous years, some acceptable small mistakes that were unavoidable in the production process will become reasons for deducting money this year, which further reduces the already small profits. .
Mr. Wang’s experience is not an isolated case, but a common phenomenon every year when the market is not good. In this year’s epidemic environment, the sales of artificial silk are even worse. It was “eaten to death”.
Foreign trade is difficult: “Christmas” and “New Year’s Day” may be silent
China Textile and Apparel It is an industry that relies heavily on exports. At the beginning of the year, despite the epidemic, the export volume of textile and clothing products increased instead of decreasing. This is mainly because countries with outbreaks overseas have strong demand for epidemic prevention supplies, which has driven the export of our epidemic prevention fabrics, epidemic prevention clothing and masks. However, the number of domestic companies involved in epidemic prevention is still limited, and most of them are ordinary clothing fabric factories. There are not many companies that can profit from this wave.
Since December, the out-of-control epidemic situation in Europe and the United States has once again cast a shadow on the export of textile and apparel fabrics. There are generally 600,000-700,000 new cases every day in the world, and sometimes even nearly 800,000. The number of new confirmed cases every day in the United States is generally more than 200,000. The epidemic in the UK is even more exaggerated. British Health Secretary Hancock said that the new strain of the new coronavirus discovered in the country has gone out of control. The mutated new virus is 70% more transmissible than the original strain. London, UK, has begun to stage a mass exodus. .
Uncertain expectations: Inventory may affect the textile and apparel market next year
Christmas in Europe and the United States in 2020 Due to the outbreak of the epidemic again in this season and restrictions on people’s travel, it will inevitably lead to sluggish sales in the clothing market. This part of the inventory of clothing will undoubtedly appear in the autumn and winter market next year, which will certainly lead to a reduction in fabric orders for autumn and winter clothing next year.
On the other hand, the current textile and apparel market is generally optimistic about the market in the second half of next year. This view is mainly based on the gradual investment in vaccines. But will the emergence of a new strain in the UK cause the current vaccine to be ineffective? Of course, there is currently no definite evidence that the new strain may affect vaccines and treatments, but the possibility of an impact still exists.
The first half of next year is basically not optimistic due to the backlog of clothing inventory in this spring and summer, and there is a high probability that there will be no improvement in orders. Once the market loses its optimism about the second half of next year, the lack of orders will last throughout 2021. The vast majority of textile companies are already struggling to support themselves this year. If the market does not improve next year, many textile companies may go bankrupt and leave.
Before the global epidemic is brought under control, there are still great uncertainties in the textile market. Especially the recent worsening and loss of control of the epidemic in Europe and the United States has made the textile market in 2021 even more confusing. </p
