According to surveys of cotton traders and cotton textile companies in recent days, the proportion of spinning mills suspending production during the Dragon Boat Festival holiday is not high, while most small and medium-sized weaving factories in Jiangsu, Zhejiang, Guangdong, Shandong and other places have holidays1- 3 days in order to cope with the pressure and risks of the off-season for domestic sales orders and increasing product inventory.
A cotton textile enterprise with 50,000 to 60,000 spindles in Xuzhou, Jiangsu reported that since mid-June, cotton yarn and gray fabrics have been mainly “destocking”, and the bargaining space for OE yarn and C21S-C40S conventional carded yarn has increased from The early price of 50-100 yuan/ton has been expanded to 100-200 yuan/ton, and “large quantities will give you the best advantage”. The person in charge of the company said that currently the largest inventory is gray fabrics, which not only takes up a lot of working capital, but also the phenomenon of fabrics, clothing, and foreign trade companies being in debt on credit is very prominent. Yarn accounts for 30-40%, and export yarn accounts for more than 60%.
Cotton textile companies are not optimistic about whether export orders from July to September can continue to be transferred to the domestic market, because judging from feedback from weaving, clothing, and foreign trade companies in coastal areas, European, American, Japanese and Korean textile products , clothing orders have not improved significantly. Among them, the foreign trade orders of some textile and garment enterprises in Jiangsu and Zhejiang have only recovered by about 30-50%, and growth is very difficult.
There are several negative factors in the second half of 2020: First, the United States has become the “epicenter” of the epidemic, 31 states have reported a rebound of the epidemic, and at least 11 states have suspended or postponed their restart plans; second, under the epidemic , a large number of European and American textile and clothing orders have been transferred to Vietnam, Bangladesh, Indonesia, South America and other countries, and the trend of “Made in China” being replaced has become increasingly obvious; thirdly, cotton and polyester staple fiber raw materials in India, Pakistan and other countries are significantly lower than domestic ones, and gauze, The competitiveness of clothing is relatively strong; fourth, compared with the range fluctuations in the RMB exchange rate, the Indian rupee, Bangladeshi taka, Vietnamese dong, etc. continue to depreciate against the US dollar, and the advantages of textile and clothing exports have emerged.
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