Recently, a notice circulated in the printing and dyeing circle of friends. Fifteen textile companies have stamped the notice and decided to adjust the dyeing and finishing processing fees starting from October 28, 2020.
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Dyeing factories have adjusted dyeing fees in recent times , it’s not really news. Fifteen textile companies stamped their stamps on one notice, which is also something that shocked the industry. We know that during this period, the overall textile and apparel industry has picked up, and market demand has increased significantly, which has led to a boom in the upstream industrial chain. This has been followed by an increase in the prices of raw materials such as cotton, polyester, and dyes, as well as a shortage of employees due to a surge in production orders. , they had to pay high prices to recruit temporary workers as an emergency. It was difficult to recruit employees and it was hard to find a good supply.
There are constant rumors in the textile market that trucks loading goods from gray cloth factories have to queue up, and trucks entering warehouses from dyeing factories also have to queue up. , there are not enough trucks on the market. Immediately afterwards, the warehouses of some weaving factories became empty and their stocks were gone, and some dyeing factories began to run out of stock.
Is it really just a “cold winter” news that can stir up the textile market that has been silent for more than half a year?
1. Finished product market stocking and winter clothing fabric orders “collide”
Everyone familiar with the fabric market knows that around October and November in the second half of the year, the market will The finished product spot market will usher in a relatively concentrated year-end stocking. This is the more common “market order” in the market. During this period, the order volume is large, the types are limited, and the duration is short.
This period is now here, and the orders are coming more obviously than in any previous year. The main reason for this situation is that the epidemic abroad is severe and a large number of overseas clothing companies have closed down. This has led to a significant decrease in clothing and fabric trade over the past six months compared with previous years. Now that their inventory has bottomed out, it is time to replenish supplies.
2. Year-end replenishment in the domestic fabric market
Also due to the epidemic, orders in the first half of the year The quantity is extremely limited, causing many textile and apparel companies to miss the spring and summer market and have high inventories. The lack of confidence in the future market has led to insufficient enthusiasm for stocking in the spot market. Now the backlog of replenishment demand has exploded, and all kinds of orders have been put into battle. When encountering the current orders for winter clothing fabrics, the market has been crowded all at once, reaching the highest level this year. The market is at its peak.
3. Domestic and foreign factors drive industry development
“Currently, our orders have been scheduled until January next year, and we are now in full production. In September, the company’s output value increased by about 25% year-on-year.” Wugang Knitting Co., Ltd. is the president of the Municipal Knitted Garment Industry Association. It specializes in the production and sales of various knitted garment fabrics, and its products are mainly supplied to downstream garment companies. Company chairman Wu Gang learned from customers in Henan, Shandong, Sichuan and other places that some clothing companies had sold out all their inventory in the previous two years. He analyzed that the recovery of the domestic textile and apparel industry is mainly affected by the superposition of domestic and foreign factors.
On October 19, the workshop of Wugang Knitting Co., Ltd. located in the Huadian Functional Area of the Development Zone was busy. In order to rush the goods, even office staff joined the production line. Compared with the first half of the year, this scene is like ice and fire.
On the one hand, a large number of textile and clothing orders have been transferred from abroad to China in the second half of the year. Affected by the epidemic, many textile and garment companies in India, Pakistan and other countries are unable to guarantee normal delivery. In order to ensure continuous supply, European and American retailers have transferred large quantities of orders to China for production. According to public data, in August, the country’s textile exports were US$14.72 billion, a year-on-year increase of 47%; clothing exports were US$16.21 billion, a year-on-year increase of 3.2%, achieving positive monthly growth for the first time this year.
Secondly, the steady recovery of the domestic economy has driven demand growth and the arrival of the traditional “Golden Nine and Silver Ten” consumption peak seasons has also stimulated the consumption of textiles and clothing.
However, Wu Gang said that the surge in foreign textile and clothing orders mainly comes from more economically developed regions such as Europe and the United States, while the growth in the Middle East, Africa and other regions is not obvious.
The rapid increase in orders in the short term has also brought new troubles to textile and garment companies – the prices of upstream raw materials such as dyes, cotton, and polyester have soared, and it is difficult to find a single supply.
“In the first half of the year, due to the sluggish market, upstream companies were controlling inventory.” Wu Gang said that after the rapid growth of clothing production, raw materials such as yarn were in short supply, prices rose by about 10%, and delivery dates were uncertain. . In the past, when purchasing yarn, it would arrive two or three days after payment; now, it may not arrive even after more than half a month after payment. Wu Gang said frankly that he has been engaged in the textile industry for more than 20 years and has not encountered such a situation in ten years. “In 2010, multiple factors at home and abroad combined, and the prices of raw materials skyrocketed, causing many clothing companies to be overwhelmed. At present,��The 10% increase in raw materials is still within the normal range and will not have a great impact on the subsequent development of the industry. ”
However, not all raw materials in the textile and garment industry are in short supply and prices are skyrocketing. Zhejiang Feixiang Thread Industry Co., Ltd., located in the Changsonggang Functional Zone of the Development Zone, mainly produces gold and silver wire, gold and silver thread and other products .As a niche category of decorative clothing accessories, its sales are mainly subject to fashion trends and are not greatly affected by the general environment, so prices and sales are relatively stable.
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Recently, some textile fabric companies in Quanzhou City have reported that they have received many diversion orders from European and American customers in India, Pakistan, the Middle East and other regions, which was rare in the past. However, due to the large Most of them are mid- to low-end textile and fabric products. Whether these orders can actually land in Quanzhou remains to be seen and followed up on negotiations.
Quanzhou Nost Textile Zhang Zishe recently received a sudden request to negotiate textile fabric orders diverted from India. He said, “In the past, we could not receive any orders from India. “According to him, due to the impact of the epidemic this year, some European and American end customers have encountered problems with the delivery of orders to Indian textile companies. “These foreign customers are now placing orders for next summer’s clothing. In previous years, they would be in September. It was confirmed a few months ago, but so far this year, they are still looking for order manufacturing companies around the world. ”
Zhang Zishe is not the only person in Quanzhou who has received diversion orders from India. According to a person in charge of the Shishi Textile Industry Association, many of their member companies have recently received orders from the Middle East and India. Negotiations with Pakistan on diversion orders are mostly for mid- to low-end fabrics.
Therefore, people in the textile industry generally judge these so-called “diversion orders” to be “emergency orders.” “I think this There are more such orders, which are still emergency measures. The transfer speed is fast, and buyers pay more attention to factors such as price and processing speed. Once India’s production capacity is restored and the domestic production cost advantage is reduced, it remains to be seen whether orders can remain in the country for a long time. ” said a researcher from the textile industry of CITIC Futures Agricultural Products Team.
Although negotiations are still ongoing, Zhang Zishe believes that because these orders are generally for mid- to low-end products, the current domestic production costs are compared to those in India. It is much higher than other places, and the profit of taking orders is too low, so the possibility of actual implementation is unlikely. “Recently, the price of domestic cotton yarn and other raw materials has increased by 15%, and chemical fiber has also increased by at least 3%, and this is only in terms of raw materials. In terms of labor, the current monthly salary for lathe workers is 6,000 yuan, while in Southeast Asia it is only 700 yuan. These orders were originally supposed to be produced in South and Southeast Asian countries. If they are transferred to us for production, the production costs will increase a lot, which is probably unacceptable to many foreign customers. “
In this regard, Shi Zhengzhi, secretary-general of the Quanzhou Textile and Garment Chamber of Commerce, said: “Recently, we have also noticed reports that orders from India have been transferred to China, but as far as I know, from the world’s largest textile exporting country Judging from the above, China, Vietnam, Bangladesh, and Turkey are the top four, and India ranks fifth at most. The annual export volume is less than 10 billion US dollars. Therefore, even if some of India’s textile orders are transferred to China, the overall volume is relatively limited. . ” According to reports, most of the textiles produced in India are mid- to low-end products. Many years ago, my country’s low-end textile processing has been transferred to Southeast Asia. Cotton in India is only produced three seasons a year, and the fiber is relatively short, so it can only produce mid- to low-end products. High-end products, while my country’s Xinjiang cotton can be produced four seasons a year, and the fiber is relatively long. Therefore, the finished products of India’s textile industry are far inferior to ours. “So overall, this so-called order transfer has a negative impact on the production of Quanzhou’s textile industry. The impact is very limited. Shi Zhengzhi said.
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The “Jordan Times” reported on October 20 that a representative of the garment industry of the Jordan Chamber of Commerce said that this winter clothing and footwear imports dropped to JD 60 million, a year-on-year decrease of 14%, and a decrease of JD 10 million compared with last year.
There are various reasons for the decline in imports, including Jordanian sub-blockade, weakened consumer purchasing power, higher risk expectations, weather factors, etc. Preparations for winter sales have begun in September, but currently 90% of goods are piled in warehouses. The clothing retail industry has stagnated, and merchants have suffered serious losses. Immediate action should be taken to change this uncertain situation. In order to increase cash flow and cover employee wages, utility bills and costs, merchants are expected to offer discounted prices this sales season, leading to fierce competition.
Currently Jordan Clothing There are about 11,000 stores in the retail industry, accounting for 60% of the stores in major commercial centers, employing 5.5 workers, 93% of whom are Jordanians. The main clothing importing countries are China (accounting for more than 50%), Turkey, India, and Bangladesh , Egypt and European countries.
Some people in the textile industry said that the global textile industry as a whole is not optimistic this year. If the epidemic abroad continues to develop, the total global textile orders will decrease.
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