As the traditional peak sales season for the textile industry, although this year’s fabric market has suffered setbacks due to the impact of the epidemic, the “Silver Ten” is still in good condition. As the temperature gradually drops, the fabric market in October shows a sharp warming trend.
“There has been an increase in orders recently, please consult us. Then confirm the price.” “The dyeing fee for woven fabrics has increased by 0.1 yuan/meter to 0.15 yuan/meter, and urgent orders will not be accepted.” Recently, the circle of friends in the textile industry has been full of surprises, with frequent product price increases, gray fabric shortages, News about dye factory explosion and other news.
Transaction prices and volumes increased, and the market accelerated its recovery
“Since the beginning of October, foreign trade orders have begun to surge, and customers have been adding new orders every day. “The relevant person in charge of Shaoxing Keqiao Senru Textile Co., Ltd. said that the company mainly produces knitted fabrics, and its products include polar fleece, lambswool, flannel, sweatshirt fabric, etc. “Regions with additional orders include Europe and the United States, as well as Japan and South Korea. From June to September in previous years, the company exported an average of one container of goods per day. Affected by the epidemic this year, export volume dropped significantly before September, but now export orders have returned to previous years. 70%.”
Ke Changsheng, chairman of Zhejiang Kewang Holding Group Co., Ltd., said that at present, the upward trend of the market is very obvious. “Recently, customers have placed orders with high frequency and large volume. Our order production has been scheduled to the end of December this year.” According to Ke Changsheng, Kewang Textile did not take a day off during the National Day, and the factories were all operating at full capacity.
“We are extremely busy during the ‘Silver Ten’ period during the epidemic.” Tang Gezhen, sales manager of Zhonghui Group, said: “A fleece fabric produced by the company was originally not planned to be used as a fleece fabric based on market conditions. The flagship product; but unexpectedly it became a hit in October, with supply exceeding demand. The company’s recent shipments have increased by more than 60% year-on-year, and customers in Shanghai, Hangzhou, Huzhou, Jiangsu and other places are waiting for the goods to be loaded every day.”
China·Keqiao Textile Index shows that recently, the spot transactions and order shipments of autumn clothing fabrics in the market have rebounded month-on-month. Order shipments of early winter clothing fabrics have partially increased, and prices have risen month-on-month. Among them, the transaction price and volume of pure cotton, polyester, polyester-cotton, polyester-nylon, polyester-span, viscose, viscose wool, nylon, and linen viscose fabrics increased in varying amounts.
Foreign trade orders return and domestic sales release vitality
In fact, in the past period, textile companies have not been doing well. Due to the outbreak of the epidemic and changes in the international trade environment, many companies have been affected to varying degrees. So what is the reason why the textile industry chain is so “thriving” in the golden autumn of October?
Recently, a piece of news that keeps flooding the screen is obviously worth noting. Recently, many large export-oriented textile companies in India have been unable to guarantee normal delivery due to the epidemic. In order to ensure that supplies during the Thanksgiving and Christmas sales seasons are not affected, many European and American retailers have transferred many orders originally produced in India to my country. . “A large number of Indian textile orders have been transferred to China and have been scheduled until May next year.” Such a piece of news has brought my country’s textile and apparel industry, which has been cold due to the epidemic, back into the spotlight of the market.
Quanzhou Nost Textile has recently received requests to negotiate orders for textile fabrics diverted from India. Zhang Zishe, the relevant person in charge of the company, said: “In the past, we could not receive any orders from India.” According to him, since this year, due to the impact of the epidemic, some European and American terminal customers have placed orders for Indian textile companies. Addressing the problem of being unable to deliver on time, “These foreign customers are now placing orders for next summer’s clothing. In previous years, they would be confirmed before September, but until now this year, they are still looking for order manufacturing companies around the world.”
Nost Textile is not the only company in Quanzhou that has received diversion orders from India. According to the relevant person in charge of the Shishi Fabric Industry Association, many of their member companies have recently received negotiations for diversion orders from the Middle East, India and Pakistan.
Not only is the foreign trade market releasing new vitality, but the domestic sales market is also rising against the trend. After entering October, various brands continued to maintain rapid growth during the National Day Golden Week, and the data performance was outstanding. According to statistics from the China National Commercial Information Center, from October 1st to 7th, the retail sales of 100 major large-scale retail enterprises in the country increased by 8.5% year-on-year, 14.3 percentage points higher than the retail sales growth rate in the same period in 2019; clothing retail sales grew brightly Eyes, the year-on-year growth rate reached 16.8%, of which the year-on-year growth rates of retail sales of men’s clothing, women’s clothing, and children’s clothing were 23.9%, 13.1%, and 27.3% respectively.
“This year, domestic trade and foreign trade orders have collided. We have recently sold all the inventory from last year and the year before.” The person in charge of Shaoxing Keqiao Senru Textile Co., Ltd. added that in the near future , the market is paying close attention to the “La Niña phenomenon” and believes that this year may be a “cold winter” due to the impact of sub-climate. Based on the early expectations of many clothing brands for this year’s warm winter, they have been cautious in purchasing fabrics for cold-proof clothing and have not stocked up much. However, recent changes in expectations have increased the demand for winter fabrics to a certain extent.
The improvement in the entire textile market is both “expected” and “unexpected.” Industry insiders analyze that after the National Day, the sales of fabric products have increased significantly. First, due to seasonal reasons, the market demand for warm fabrics has increased; secondly, because fabric orders have been relatively conservative since the epidemic, and early orders have beenThe market has almost been exhausted and is in urgent need of new supplies.
The market situation is still difficult and we still need to be cautious in predicting the market outlook
However, many people have also raised doubts about the current improvement of the entire textile market. According to industry insiders, most of the products currently on the market are “market orders.” The characteristic of market products is that they come and go quickly, and they do not last long. Not all manufacturers can receive large orders of hundreds of thousands or millions of meters. In addition, due to the impact of the epidemic, many clothing companies have closed down or closed down. Many brand clothing companies are also reducing orders for autumn and winter. Therefore, fabric companies still need to be cautious in facing the future market.
Zhang Zishe also has a similar view. Although orders from India are still being negotiated, he believes that because these orders are generally for mid- to low-end products, the current production costs in China are higher than those in India and other places. There is a lot of money to be made, and the profit from taking the order is too low, so it is unlikely that it will actually be implemented. “If these orders from South and Southeast Asian countries are transferred to us for production, the production costs will increase a lot, and many foreign customers may not be able to accept them,” he said.
“The current market is retaliatory consumption.” Ke Changsheng said that the overall performance of global textiles this year is not ideal. Clothing buyers will naturally shop around to select high-quality, low-price, and reliable manufacturers and manufacturers. product. “However, our country’s epidemic prevention and control is very good, and many orders will return to China in the future, so I am very confident about the subsequent foreign trade market.”
For this wave of domestic textiles driven by domestic demand and foreign trade The fabric industry is experiencing an upsurge in development, and industry professionals generally believe that the domestic apparel industry as a whole is still in a historical dilemma. Textile and apparel brand management expert Cheng Weixiong said that the epidemic has had an impact on the supply chain market in my country and even the world. The global market has not yet fully recovered and improved. It is too early to talk about an outbreak in my country’s textile industry at this time. “The entire industry is still in a slowdown. The sleepy state requires a recovery cycle.”
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