Since the outbreak of the new coronavirus in China, the pause button has been pressed on the economy, trade, production and processing. Affected by the delay in starting work and the external transfer of some orders, the pressure on the textile industry has doubled. With the slow start of resumption of work in mid-to-late February, the market is slowly improving. However, since the outbreak of the epidemic abroad has triggered a sharp decline in the financial market, the sharp drop in raw materials has coupled with a sharp drop in orders, and market transactions have once again deteriorated. Some textile companies have reported that the traditional peak season of March and April will become the most difficult time to endure.
The outbreak has increased uncertainty in the textile market
WHO real-time statistics show that as of 0:59 on March 23, Beijing time, There are 294,110 confirmed cases of COVID-19 globally and 12,944 deaths. Currently, there are confirmed cases of COVID-19 in 186 countries and regions around the world, with more than 210,000 confirmed cases of COVID-19 outside China.
On March 22, local time, the governments of Italy, Germany, France and other European countries announced new measures to deal with the rapidly spreading epidemic.
Italy
As of 18:00 local time on March 22, there were 5,560 newly confirmed cases in Italy within 24 hours, with a total of 59,138 confirmed cases and 5,476 deaths nationwide.
The Italian Prime Minister signed a decree to suspend non-essential production activities nationwide from the 23rd. The decree is valid until April 3rd. The validity period of prevention and control decrees previously passed by the government such as restricting movement and suspending commercial activities has been extended to April 3.
Germany
German Chancellor Merkel on the evening of the 22nd local time It was announced that Germany will not implement a nationwide “foot ban” for the time being, but gatherings of more than two people are prohibited, and violators will be fined (except for family members who live together).
After the press conference, a spokesperson for the German federal government revealed that German Chancellor Merkel will be quarantined at home because the doctor who treated her tested positive for the new coronavirus.
France
On the 22nd local time, the French Ministry of Health stated that, There were 1,559 new confirmed cases in France, bringing the total number of confirmed cases to 16,018 and 674 deaths.
The French Senate and the National Assembly have successively passed bills, stipulating that France will establish a public health emergency for two months from the date of the bill’s entry into force. During this period, the French government can restrict the travel and movement of people, requisition necessary supplies and services, and provide financial assistance to businesses and individuals by issuing administrative decrees.
UK
As of 9:00 local time on March 22, The total number of confirmed cases of COVID-19 in the UK has reached 5,683, with 281 deaths.
The British National Health Service plans to send out advice through letters and text messages next week to the 1.5 million high-risk groups across the country, including those suffering from severe respiratory diseases and those who have received organ transplants. Do not leave your home for 12 weeks to protect your personal health.
Spain
As of 11:00 local time on March 22, The cumulative number of confirmed cases of COVID-19 in Spain has increased to 28,572, with 1,720 deaths, an increase of 3,646 from the same period on the 21st.
Spain declared a national emergency extension for another 15 days. Previously, Spain declared a state of emergency on March 14 due to the new coronavirus epidemic.
Greece
Greek Ministry of Health on the afternoon of March 22, local time It was announced that there were 94 new confirmed cases in Greece, bringing the total number of confirmed cases nationwide to 624 and 15 deaths. The average age of the deceased was 77 years old.
Greek Prime Minister Mitsotakis announced that starting from 6 a.m. on the 23rd, a comprehensive lockdown and a nationwide ban will be implemented.
In addition, the development of the epidemic in the United States is not optimistic either. The latest data released in real time by Johns Hopkins University in the United States shows that as of 12:53 a.m. Eastern Time on the 23rd, the number of confirmed cases of new coronary pneumonia in the United States has reached 35,211, with 471 deaths. According to US media reports, as many places have successively issued “city closure orders”, nearly 1/3 of Americans have been ordered to stay at home to slow the spread of the epidemic.
Europe and the United States are important markets for Chinese textiles and clothing. Under the influence of the epidemic, many countries have taken emergency measures, closing cities and countries, closing stores, and suspending factories. Some economic and trade activities have come to a standstill, which has had a certain impact on textile and clothing exports.
As the COVID-19 epidemic spreads in Europe and the United States, many luxury goods companies have chosen to temporarily suspend production. Following Hermès and Gucci, a brand owned by Kering Group, Chanel has also decided to suspend production in the short term and will close its factories in France, Switzerland and Italy in the next two weeks. Previously, Chanel also canceled its early spring resort fashion show originally scheduled to be held in Capri in May. Affected by the epidemic, brands such as Gucci, Versace, Max Mara and Hermès have also canceled their 2021 early spring vacation shows.
The long-term positive trend of foreign trade development has not changed
Affected by the overseas epidemic The biggest blow is to the domestic textile industry. The entire international crude oil market has been experiencing violent fluctuations recently, and the global economic situation is not optimistic. The demand for textile fabrics is restricted, and the entire textile and apparel market generally lacks confidence in the market outlook, so orders are placed cautiously and conservatively.
At the beginning of the resumption of work, due to the concentrated release of backlogged orders from the previous year, the entire textile market showed gratifying peak season conditions. However, as follow-up orders have obviously followed up and orders have been reduced and canceled, the durability of this market has begun to be greatly reduced. Nowadays, those textile factories that specialize in exports receive a large number of overseas order cancellations every day, and the market Uncertainty increases.
According to a salesperson from a clothing foreign trade company, they purchase fabrics from China and then export them to garment processing factories in Vietnam. Finally, the finished garments are exported to the European market. In other words, their end customers are actually clothing companies from Europe and the United States, and among their large customers are many Italian clothing brands. However, as the epidemic continues to ferment in Europe, many of their orders have been cancelled, especially in Italy, which has been in a state of lockdown. In addition, some fashion exhibitions and clothing shows have also had to be postponed, and those clothing brands that place orders based on fashion trends are bound to postpone or reduce the number of orders.
The reduction in orders will not affect the long-term development of foreign trade
The government is extremely concerned about the problems faced by textile foreign trade companies.
On March 19, the Ministry of Commerce held an online press conference and stated that the new coronavirus pneumonia epidemic is spreading around the world, with confirmed cases in more than 160 countries and regions, and some The country’s production, consumption and other fields have been affected, trade activities have decreased, and the downward pressure on the global economy has increased. In the coming period, foreign trade companies may encounter problems such as sluggish external demand and reduced orders.
However, the General Administration of Customs also pointed out in its previous announcement that my country’s foreign trade development is highly resilient, and enterprises have strong adaptability and market development capabilities. With the positive results achieved in epidemic prevention and control and the gradual implementation of various policies and measures, foreign trade companies have accelerated their resumption of work and production, and market confidence has steadily recovered. The impact of the epidemic on import and export is temporary and phased, and the long-term positive trend of foreign trade development has not changed. </p