I missed the peak season of the textile industry in March and April, but this time I did not miss the off-season of July and August! The lack of orders caused by the epidemic combined with the traditional off-season has made the entire textile market extremely calm since July. The operating rate has continued to be low, gray fabric inventory has steadily increased, and orders have disappeared. Occasionally there were a few proofs and small tanks, but in the end most of them were abandoned. It can be said that the entire market has no bright spots!
However, being calm is not the result that the textile market wants, and there is a lack of hot spots and explosive products. Textile companies have lost their guide to action. A large number of conventional and ordinary fabric varieties are produced together, and there is no limit to the large occupation of working capital to accumulate gray fabric inventory. As a result, textile enterprises that cannot wait for the arrival of the peak season in time are in a difficult situation. Should they strive to survive or compromise with fate?
Shaoxing Printing and Dyeing Factory: Lowering dyeing fees to ensure production and self-help, orders dropped by about 30% compared with the same period last year
July is the hottest time of the year in midsummer. In the dyeing and finishing workshop of Yingjili Printing and Dyeing Co., Ltd. in Binhai New District, Keqiao, Shaoxing, the indoor temperature is not as high as expected. “The current situation is more severe than that from January to March. There are fewer machines running and the temperature in the workshop is relatively not that high.” The manager of the printing and dyeing production department of Yingjili told reporters that now is the off-season for the domestic market and foreign markets. Due to the epidemic, there has been no improvement, so the overall operating rate of dyeing factories is very low. He also heard that some dyeing factories even gave employees a month or two off, which put great pressure on the industry. “In order to maintain the factory and allow the workers to have work and food to eat, our boss decided to reduce part of the processing fees to attract some customers,” said Director Bian.
It is understood that the impact of the epidemic this year has had a huge impact on the entire textile industry. Business volumes in all links are sluggish due to lack of orders. The same is true for printing and dyeing factories. The operating rate has been insufficient for a long time, and the daily warehouse volume has dropped from one million meters to two to three million meters.
In such a situation of long-term lack of orders, some dyeing factories have lowered their dyeing fees to maintain basic operations and retain customers to survive in the industry competition of “more monks and less rice”. The most important thing for these printing and dyeing companies this year is to survive for a long time.
“The production capacity of our Keqiao printing and dyeing cluster is global production capacity. The foreign trade export processing of printing and dyeing enterprises here accounts for more than half of the total processing volume. But in the first half of this year, the entire European and American markets , the Middle East market, and most markets in Africa are basically closed. More than half of these orders have disappeared, and the pressure can be imagined, so the decline in dyeing fees is inevitable.” Wang Wenjun, general manager of Shaoxing Yingjili Printing and Dyeing Co., Ltd. estimated, He told reporters: “The original dyeing fee of 2 yuan/meter may now be only 1.3-1.4 yuan/meter. This year’s dyeing fee has dropped by about 30% compared with the same period last year.”
According to the latest data report from the China Printing and Dyeing Industry Association, from January to May 2020, the output of printed and dyed fabrics by printing and dyeing enterprises above designated size was 17.612 billion meters, a year-on-year decrease of 14.46%. As the foreign epidemic situation has not yet shown obvious signs of improvement, the export situation of printing and dyeing products is still grim. However, my country’s epidemic prevention and control situation is good. With the continuous release of domestic consumption potential, the recovery of the domestic demand market is obvious. The decline in output from January to May narrowed by 1.40 points month-on-month. percentage point.
Jiangsu and Zhejiang weaving markets: have surrendered, either taking a holiday or selling factories
This year’s various types of textiles Among the factories, the most stubborn ones are the weaving factories. Even if there were no orders throughout the first half of the year, most weaving factories still maintained a high operating rate, or even at full capacity. However, gray fabrics cannot flow downstream due to lack of orders, and factories with strong capital chains cannot withstand such a backlog for more than half a year. The “last straw that broke the camel’s back” seems to have come, and the decline of the entire weaving market has become increasingly obvious recently!
“We only have 200 looms, but the current inventory has exceeded 2 million meters. Although it doesn’t look like much, it is already our production for two months. A while ago, I didn’t dare to stop the machine, for fear that the workers would leave during the holidays. Even if it was a holiday, several nearby manufacturers would put it together. But this month it was really unbearable, and the weather just happened to get hot, so we put one in by ourselves. Weeks. Looking at the situation later, it is estimated that it will be on and off.” said a person in charge of a weaving factory.
In fact, there are many companies in the market that choose to take holidays like them. In the early stage, many weaving companies maintained a high operating rate despite no orders, and they were preparing to start production in July and August. Holidays in the off-season and in hot weather. Of course, not all weaving companies can withstand the ravages of the off-season.
At present, many weaving companies have appeared on the market, selling “indicators” that seemed valuable in previous years. In the current severe environmental protection situation, these indicators are almost out of print. Logically speaking, they should be very popular, but in fact there are many people who are eager to sell them, but very few people take over.
“Inside our factory��There are 300 false twisting machines, which have been sold since last year. They are basically half sold and half given away. Now they have all been sold. In the past, such machines were imported and cost more than 200,000 yuan. Now they are sold. It only costs 5,000 yuan to buy one, but no one may want it. “The person in charge of a large textile factory in Jiaxing said.
“We have about 200 false twisting machines in the factory. When the market was good before, they were basically all There are only a dozen machines open now, and the workers are all on vacation. Now many textile factories are selling machines, and we have to start thinking about selling them. “A textile boss in the Shengze area said.
The textile market was already in dire straits due to the impact of the epidemic, and now that it is the off-season, the market is even more difficult to explain. In fact, The main reason why textile factories have the idea of selling machines is that they cannot sell goods at low prices and have difficulties in capital turnover!
Surviving the off-season, textile printing and dyeing The market will still have a long recovery period to go!
At present, the textile off-season has truly arrived, and orders in the market have once again entered a “semi-stagnant” state. Some clothing brands such as Nike, Ralph Lauren and others are reducing orders for this autumn and winter. It is still doubtful whether orders can pick up in the second half of the year. With fewer orders, customers will have higher and higher requirements for companies and products. At this time, companies must continue to develop to meet the market. Only by providing products in demand and constantly innovating can we hope to win in the fierce market competition.
The product structure of Hangzhou Hangmin Damei Dyeing and Finishing Co., Ltd., located in Xiaoshan, Hangzhou, before the epidemic The layout is 80-90% of foreign trade orders, with a small amount of domestic sales orders remaining. At the beginning of the outbreak of the epidemic in Europe and the United States in March, Aviation Civilian Delta Dyeing and Finishing adjusted its strategy in a timely manner, taking advantage of the buffering stage of the “braking period” of foreign trade orders to push the entire business team to focus Turning to domestic customers. “Wuhan, as the hub of China, has also opened up a wave of market conditions in the domestic market since the unblocking of Wuhan on April 8. We made timely strategic adjustments to seize this wave of market conditions. ”
According to Lu Chongliang, director of the General Manager Office of Hangzhou Hangmin Damei Dyeing and Finishing Co., Ltd., the company’s startup rate this year is relatively stable, with a maximum of 80-90%. Except for February, there was no In addition to production capacity, the performance in March was basically the same as last year. A total of 92 million meters of cloth were produced, which was only two to three million meters less than last year.
Then the entire April-June period , the production capacity has also reached 60%-70% of the same period in the peak season last year. Lu Chongliang said that in order to expand the domestic market, Air Civil Delta’s dyeing fees have also been reduced accordingly, and the specific price has dropped by 5%-10%. “Originally 3 yuan/ We will give a profit of about 0.15 yuan on the rice dyeing fee. On the one hand, it benefits the customers, and the other reason is that the pricing will be different depending on the requirements of domestic and foreign trade orders. ”
Faced with the current complex international situation and fierce market competition, printing and dyeing companies in Hangzhou and Shaoxing have adopted some preferential dyeing fee policies to win more customers, or in other words, Consolidate the relationship between customers and survive the off-season. Regarding the prediction of the printing and dyeing market in the second half of the year, Wang Wenjun believes that the destructive power of COVID-19 on the entire economic system is unimaginable. If the international epidemic can be completely controlled in the second half of the year, there will still be a long way to go. There is a long recovery period to go.
In his view, there are many uncertain factors in the market, so what kind of state the textile market can return to in the future is still a matter of The unknown. Lu Chongliang suggested that printing and dyeing enterprises still need to make steady progress in the second half of the year, change their operating ideas in a timely manner, actively expand the market, grasp the domestic trade market, and first ensure the stability of the enterprise’s production capacity before seeking further development.</p