In recent times, the textile market has ushered in a bright moment. News of the return of orders has attracted widespread attention in the market. Are there any return orders? Has the domestic textile industry begun to pick up? CCTV financial reporters visited textile companies in Jiangsu and Zhejiang. What is the situation like?
Reshoring of foreign orders
The output value of the domestic textile industry has increased significantly
Shu Jiewu is the person in charge of the company. He told reporters that the company mainly produces tablecloths, pillow cases and other home textile products. It is a small business that has just been established four years ago. In March this year, he was still worried about the wages of workers. Unexpectedly, he recently received an order from the international brand ZARA.
Shu Jiewu, general manager of Zhejiang Jinhua Henggang Home Textile Co., Ltd.: It is also available in India and Vietnam. The customer told us that it might not be able to complete such a large quantity. After about a month or so, He said there might be a shutdown there.
Shu Jiewu told reporters that in order to accept this order, he repeatedly sent samples to customers more than 10 times, and finally successfully received an order of hundreds of thousands of tablecloths, and this order was Accounting for 60% of the company’s total output.
In a clothing company in Shengze, Jiangsu, the reporter also saw a busy scene. The person in charge of the company said that because the current epidemic abroad is still severe, many manufacturers are in a state of shutdown, resulting in the inability to deliver goods.
In the domestic textile industry, the operating rate has basically returned to more than 90%, so many orders have begun to return. These return orders are mainly for consumables such as towels, home textiles, and home clothes.
Textile raw material sales are booming
Trucks are queuing up for loading
Downstream orders The popularity has also driven up the volume and price of upstream raw materials.
At the entrance of a textile raw material production company in Shengze, Jiangsu, the reporter saw large trucks filled with chemical fiber raw materials lining up waiting to leave the factory. There are many trucks waiting to be loaded in the open space of the factory area.
The driver, Master Hu, told reporters that after waiting for nearly three hours, it was finally his turn to load the goods.
Jiangsu truck driver Master Hu: We have to make several trips a day, and sometimes we can’t even wait in line. The busiest thing is loading at night, and loading at night. It started in August, and it has been very busy every day until now.
The relevant person in charge of the company said that such a queuing scene has not been seen for a long time. Since September, the company’s orders have shown explosive growth. The company’s main product is polyester filament, which is the main raw material for many clothing and home textile products on the market. Orders placed now will take at least a month to be delivered.
Zhu Junying, general manager of Jiangsu Shenghong Chemical Fiber Marketing Center: We have lasted for more than 20 days, and the production and sales rate exceeded 100% every day. The inventory is now at the lowest level this year. In preparation for Double 11, e-commerce demand is very high. The supply of velvet products for winter is in short supply, and the demand for products from downstream customers is also in short supply.
In addition to the increase in order volume, the price of raw materials is also rising. Data shows that the polyester filament market performed well after the National Day. As of October 16, the prices of polyester POY, polyester DTY, and polyester FDY have increased by 500 yuan/ton, 350 yuan/ton, and 550 yuan/ton respectively compared with the price bottom in September. The prices of other raw materials such as cotton, spandex, viscose and other chemical fibers are also rising.
There are more orders
The fabric market is gradually recovering
“The recent explosion There are so many orders at once, which is really beyond our expectation.” Talking about the recent market conditions, Xu Weiliang, general manager of Suzhou Silmeida Needle Textile Co., Ltd., was particularly excited.
Xu Weiliang said that Silmeida mainly produces a series of suede gray fabrics. The products have good imitation fur effects and have been selling well all over the country for many years. In the first half of this year, affected by the epidemic, sales were very light. But since early September, an unexpected wave of market conditions has hit us, and “the market is like burning.”
He said that since early September, a wave of unexpected market trends have come from all over the country. Orders are pouring in. “This wave of market conditions will continue, because our country attaches great importance to the prevention and control of the new coronavirus epidemic, and the textile market has fully recovered.” Xu Weiliang estimates that in the second half of this year, the company’s output value and sales volume will increase by 30% compared with the second half of last year. %.
△Suzhou Silmeida Needle Textile Co., Ltd. Fabric Showroom
“The market situation really comes as you say.” Zhang Jun, general manager of Suzhou O’Neil Textile Technology Co., Ltd., said that they are an enterprise mainly engaged in trade and sell mainly products. It is a fabric for autumn and winter clothing, down jackets and jackets. This year’s COVID-19 epidemic has seriously affected the export business. Unexpectedly, after the National Day, the domestic market suddenly exploded, and the supply of products exceeded demand. “Now is the time to re-examine the potential of the domestic market.”
Zhang Jun said that he went to Shanghai to participate in an exhibition in September and met many merchants at the meeting. A large number of orders were quickly placed, and most of them were from domestic big-name clothing companies. “I found that the domestic market is now more sensitive to new products than the European and American markets, and we will speed up the launch of new products.” He said that currentlyshowed explosive growth every month. Some cotton mills place orders in 15-20 days, and some orders take about a month.
“During the epidemic, the inventory of some companies did increase a lot, with 30-45 days of finished product inventory, but it has been significantly reduced recently.” The interviewed companies said that some yarn mills currently exceed It takes about 20 days to sell.
During the visit, the reporter learned that the exports of cotton mills were indeed affected during the epidemic this year, and have improved in the past month, mainly due to the impact of the epidemic on the re-orders caused by the start of overseas operations. However, according to a pure polyester yarn company, foreign orders have decreased after the recent price increase.
At present, the companies visited have a lot of raw material inventory reserves. In the later period of the surge in raw materials such as polyester shorts and other raw materials, downstream “households have surplus food” and are less willing to chase the rise. Therefore, raw materials Production and sales have been sluggish recently. In terms of raw material procurement, in addition to purchasing based on the factory’s immediate needs, yarn mills also conduct staged pulse purchases based on market conditions to a large extent.
Generally speaking, the current orders of spinning enterprises can be completed in late November, and raw materials have been stocked accordingly. The inventory is relatively healthy and can be maintained in the short term. As for the situation and continuity of new orders after the orders are completed, companies currently express that there is still a certain degree of uncertainty. If the external epidemic situation improves, a round of centralized replenishment may be carried out.
Profits are being squeezed
Textile companies are in a dilemma
According to industry insiders , due to the rapid rise in the price of textile raw materials, a large number of traders have adopted the strategy of “high quotation, low transaction”, holding back the market, waiting for the price, or even choosing to break the contract; under the expectation of RMB appreciation, imported yarn is also in the “not quoting” situation. “Closed” status. In order to ensure production and delivery, a “fabric rush” has also begun in the textile industry.
A textile industry person pointed out that with the skyrocketing prices of raw materials, cotton gauze, and fabrics, textile and clothing exports are in a dilemma.
First of all, at present, most foreign brands and retailers do not accept the increase in quotations from textile and garment enterprises and foreign trade companies. The increase in raw materials and gauze is difficult to pass on to end orders. Export-oriented enterprises have relatively poor affordability. Limited, so either “abandon the order” or absorb the rising costs of cotton, cotton yarn, etc. on their own. No matter which choice they make, production companies will be in pain.
Secondly, in August and September, many companies received orders for Thanksgiving, Christmas or “Double 11” domestic sales orders from European and American markets. The prices of cotton, cotton gauze, etc. rose sharply. Profits have shrunk significantly or even fallen into losses. These orders are likely to be unable to be executed. Textile and clothing companies are suffering between executing the contract or negotiating with the purchaser to terminate the contract or breach of contract.
Thirdly, due to concerns about significant fluctuations in the RMB exchange rate, export-oriented trading companies have also become cautious in accepting orders.
The skyrocketing quotations for raw materials, yarns, fabrics, etc. have inhibited the continued recovery of foreign trade demand to a certain extent. For example, many people in the textile industry said that customers would not accept the quotations based on the latest cost verification; on the other hand, traders complained that it was difficult to find processing companies with good supply quality and cheap prices. “Difficult to ship” has become the norm, so many export orders with low quotations and low profits have been abandoned.
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