“Due to the recent downturn in the market and unsustainable supply of goods, the company has decided to arrange for some employees to take annual leave in advance.” “Due to insufficient orders in the factory, we will first make adjustments to the holidays in batches for employees in the factory”… In fact, there are already printing and dyeing companies The factory has been on annual holiday since December 1, and the Spring Festival holiday in 2022 seems to have come a bit early.
The key to textile printing and dyeing factory production: The thermal power plant stops steam supply in advance!
As the end of the year approaches, what textile people are most concerned about is the production shutdown and holiday time of various factories. Especially this year, due to the special situation of the epidemic in Zhejiang, the holiday time node is extremely sensitive. In the past half month, various notices and signs of upcoming holidays have appeared in the market many times. But most of them are some individual textile factories or indicate that they may need to notify them of holidays in advance, and the holiday time of most dyeing factories in the market is also determined by thermal power plants. When everyone still thought that the thermal power plant should have a holiday at about the same time as in previous years, they never thought that the thermal power plant would stop supplying steam during the Spring Festival so soon!
Once the textile thermal power plant determines the time to stop steam, it will inevitably mean that multiple dyeing factories will suspend production and take holidays at the same time. At present, some printing and dyeing factories have issued holiday notices for the Spring Festival, and officially have holidays following the supply of steam.
This year’s textile market holiday may be half a month to one month ahead of schedule
On the one hand, it is due to printing and dyeing factories taking the holiday ahead of schedule. On the other hand, as the end of the year approaches, weak orders and epidemic control have reduced the operating load. Some downstream companies have expressed the idea of bringing the Spring Festival holiday ahead. At present, most of the orders made by dyeing factories are scattered tail orders and replenishment orders for domestic brands. The spring and summer orders of brand clothing include a trace amount of small vats, but the actual large orders that can be placed are expected to be limited. “There are not many orders now. The company originally expected that there would be a batch of foreign trade orders in the near future. However, due to the impact of the ‘new epidemic’, it is still unknown whether the orders can be issued normally.” A dyeing factory company said.
“The market has not shown many outstanding performances in export sales as market participants expected. At least as of the current time point, export orders have not increased significantly, and the situation of new orders in textile terminals is still unsatisfactory. “Zheshang Futures analyst Zhu Lihang said that terminals are still too pessimistic about the short-term market, and most of their stocking is based on rigid demand.
“If due to the impact of the epidemic, the downstream holiday is advanced to before New Year’s Day, and if they work on the eighth day of the Spring Festival as normal, the holiday will be more than one month. If some workers return to work after the fifteenth day of the first lunar month, the holiday will be one and a half months. In previous years, it usually takes place during the Spring Festival. There is a holiday in the first half of the month or so, and this year’s holiday may be half a month to one month earlier,” said Pang Chunyan, analyst at SDIC Essence Futures.
In this regard, CCF senior analyst He Lingli also confirmed to reporters that at the end of 2021, the holiday time for terminal weaving is indeed earlier than the holidays in previous years. Some factories have already entered the holiday, among which warp knitting factories are more obvious. “Judging from the time when the weaving load dropped below 30% before the Spring Festival, the pre-holiday holidays in recent years have become earlier and earlier. Last year, the weaving load dropped below 30% at the end of January. This year, the weaving load is expected to drop below 30%. It may appear in early January.” He Lingli said.
Pang Chunyan told reporters that the degree of automation of downstream textile printing and dyeing is lower than that of the upstream, and the dependence on labor is relatively strong. Therefore, epidemic prevention and control has a greater impact on production. Workers have holidays and factories can only stop production. Judging from the upstream and downstream operating rates during the Spring Festival over the past years, Clearly seen. During the Spring Festival, upstream refineries will not be affected, and the production of PTA and MEG will remain normal. Polyester production will generally decrease moderately. Enterprises will make adjustments based on inventory, orders and expectations for the new year. Generally, the decrease will be 10%-20%, maintaining It was above 75%, while weaving, texturing, and printing and dyeing basically stopped. It gradually picked up after the Spring Festival and returned to normal in March.
We are currently in the closing stage at the end of the year. In the face of epidemic prevention and control, there are few market variables. The epidemic may accelerate the weakening of terminal demand. However, in the opinion of industry insiders, compared with the impact in the first quarter of 2020, the impact this time is still relatively limited. It is expected that production will return to normal after the Spring Festival. The market outlook will mainly focus on the order performance after the Spring Festival.
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