Due to the rapid spread of the epidemic, orders have dropped off a cliff, and the situation is grim! Many people did not expect that things would turn around so quickly: In January and February, the epidemic in China was severe, but as the “world’s factory”, it was unable to produce, and overseas customers urgently urged orders; in March, the epidemic abroad was severe and the market was in a downturn, and customers who had originally urged orders were Postponing or even canceling orders. As the situation becomes more severe, it has already affected the printing and dyeing industry! Printing and dyeing factories have issued notices, all employees have entered vacation mode, and employees are encouraged to resign voluntarily!
Because Orders from printing and dyeing factories have decreased, and many companies have begun self-rescue mode and actively encourage employees to take subsidized vacations. It is not yet known when work will resume.
Shaoxing textile companies are in urgent need of cash flow
Shaoxing The boss of a foreign trade company in Keqiao said that the impact of the overseas epidemic has been fatal. European factory orders have been reduced, inventories are backlogged, and half of the payment may not be recovered. The cash flow of many factories cannot last three months.
Since the beginning of March, the overseas epidemic has accelerated its spread, and the risk of small and medium-sized foreign trade companies losing orders has gradually increased.
Some netizens reported to the special commissioner that the boss of our factory organized buses to pick up the workers to resume work. Within a few days, the epidemic broke out in Europe and the United States. It’s holiday again. At the same time, a friend who is a shoe trader said that my shoe trader was rushing to ship out the containers when they were just able to ship them in February. As a result, the containers were still floating on the sea, but the destination city was closed down and the store was temporarily closed.
In the first two months of this year, China’s total export value of goods trade was 2.04 trillion yuan, a decrease of 15.9% compared with the same period last year. As the international epidemic further spreads, the foreign trade import and export situation may further deteriorate, and it is necessary to prepare for early response. “Xin Guobin, Vice Minister of the Ministry of Industry and Information Technology, said at the press conference of the Joint Prevention and Control Mechanism of the State Council held on March 30.
2 On March 22, workers at a foreign trade company in Shaanxi were doing sorting work. Source: “Shaanxi Daily”
The garment foreign trade industry is one of the hardest-hit areas under the impact of the epidemic. Information It shows that many well-known fast-selling clothing brands such as ZARA and HM are gathered in Europe and the United States. Affected by the new crown epidemic, the above-mentioned companies have adopted measures such as large-scale store closures around the world, and their sales have been affected.
The fermentation of orders has been cancelled, and the printing and dyeing process is under pressure!
Currently, Mr. Chen, a trader, said that he went to the dyeing factory and found that there were no orders from a certain sports brand before June. In previous years, he would more or less receive printing and dyeing orders for the brand’s knitted fabrics. “Now I I feel a little panicked. I still have 70,000 meters of orders on hand that I’m rushing to make. They should be ready to ship in the next few days, but I don’t know where to look for the next orders, and now I don’t dare to accept some orders. “Mr. Chen said.
It is reported that the current order cancellations on the fabric trade side have been gradually transferred to weaving factories and printing and dyeing factories. A salesperson from a printing and dyeing factory said that orders There are quite a few orders that were temporarily stopped or were quickly stopped after being brought in, accounting for about 30% of the total orders. “Currently, the work in the dyeing factory is less than before, and orders are expected to decrease one after another. ”
A textile boss listed a table of market changes since they started work:
Wait, wait! Wait! It is not the orders, but notices from various brands canceling orders from suppliers:
Primark, the largest fashion retailer in the UK market, canceled all orders;
Top Shop Parent company Arcadia Group freezes payments to suppliers;
Peacocks cancels all orders before June 20;
New Look halts all production;
Debenhams postpones One month payment;
Fossil cancels orders and hits Dongguan companies hard;
…
One move affects the whole body! In addition, due to the impact of the coronavirus, the number of retail store closures in the United States continues to increase, and market consumption is suspended, making it difficult to carry out manufacturing activities. The textile boss said frankly: There are ” It feels like winter has entered overnight!
Nowadays, the crazy depreciation of raw materials has also caused the inventory of weaving factories to depreciate. After all, the price of raw materials used to be higher than the current price for production. One main business is Chunya The person in charge of the textile and polyester taffeta manufacturer said that the current market situation is not good, and the plummeting price of raw materials has a greater impact on profits. He explained that the factory currently has about 40 days of gray fabric inventory, all of which were produced before the year. , almost more than 4 million meters. At that time, the price of raw materials was relatively stable, but currently the rough�The price dropped by 0.10 yuan/meter, and this batch of inventory directly depreciated by 400,000 yuan.
A textile boss who opened a factory in Jiangxi said that he does not dare to increase the operating rate at the moment. I am afraid that I will lose one meter for every meter of production. “I haven’t received any orders since the beginning of this year. At present, I just want to clear the inventory quickly and don’t dare to produce more. Due to the global spread of the epidemic, the lack of orders, and the accumulation of inventory can easily cause inventory depreciation and capital backlog.”
Compared with the start-up load in recent years, the start-up load one month after the resumption of work in 2020 is obviously low. The current start-up load in Shengze area has recovered to 70-80%; in Changxing area it has recovered to about 60-70%; Xiao Shao area is on the lower side, at about 60%; compared with the same period last year, construction starts increased slowly.
The spread of the global epidemic has triggered a foreign trade alarm!
Depreciation of raw materials, difficulty in destocking, and sharp decline in profits have become the “thorns” in the hearts of textile bosses. For them, these pressures can only be relieved if demand recovers as quickly as possible. Judging from the feedback from the companies visited, the new orders of most companies can be said to be “clear soup with little water”, which cannot be compared with the lively scenes of the “Golden Three” in previous years.
First, the epidemic broke out in China in February, which delayed the recovery of the domestic trade market. Then, the global epidemic broke out in March, causing overseas orders to also be affected. Some textile companies have already suffered from customer concerns. Due to the severe epidemic situation in the country, the order was cancelled.
Some foreign trade companies said that orders from Italy and 300,000 meters of orders from South Korea were cancelled. Facts have proved that the current textile companies are “internal and external troubles.”
At present, market participants are generally concerned about:
1 , when the global new crown epidemic will end, which plays a decisive role in whether their foreign trade business can continue to develop in the first half of the year;
2. The crude oil price war between Saudi Arabia and Russia Is it a conspiracy or a conspiracy? In any case, the decline in the price of textile raw materials has put some pressure on the raw materials and finished products of downstream production enterprises, further diluting profit margins;
3. Subsequent external market estimates There will be a wave of holiday operations. Whether it is a temporary farewell or a permanent exit from the stage, different operations will have completely different outcomes for the market.
In any case, the current market focus is still on the development of the global new crown epidemic. Every textile boss hopes that this “black swan” will fly away as soon as possible and everything will return to normal. </p