Since this period of time, power restriction measures in various places have been relaxed. The prices of raw materials are slightly more stable than in the previous period, but they are still at a high level. Under the combined influence of various factors, many domestic textile and garment companies are facing a decline in orders. and the dual pressure of declining profits.
Since late October, power cuts in Shandong, Henan, Jiangsu and other places have been fully relaxed or even cancelled. Production capacity has been rapidly restored and released, and the gauze inventory rate of some small and medium-sized enterprises has been rising. High, working capital is occupied. In addition, as the end of the year approaches, textile companies have greater cash flow needs and need to pay for spare parts, water and electricity bills, wages, bonuses, loans and interest. Some companies have resorted to methods such as selling inventory and quickly realizing cash to maintain production.
The previous power restriction policy gave the market a chance to breathe. A large amount of inventory of weaving manufacturers was cleared. Now the policy has relaxed After the start of the year, the production capacity of most manufacturers has gradually recovered. However, because holiday orders such as “Double Eleven” have been consumed during the power limit period, some manufacturers have even fewer orders than during the power limit period. In addition, there have been few orders recently and production capacity is recovering. Sales of some gray fabrics are not good, and the inventories of weaving companies have begun to show an upward trend.
After one month, the lingering heat of “Double 11” has passed!
In the early stage, under the hype of “Double 11 Stocking Season”, the entire industry chain from clothing to fabrics to weaving has entered the market peak period, and the market has ushered in a wave of explosion. With rapid growth, many weaving bosses said that sales were at the highest level of the whole year. As the demand for down jackets, cotton jackets and other cold-proof clothing fabrics increased, manufacturers once again cleared a batch of inventory, easing production pressure. Gray fabric inventories in Jiangsu and Zhejiang also responded. decline.
After a month, this wave of enthusiasm has faded. In mid-November, the gray fabric market once again showed a trend of accumulated inventory and reduced production.
According to monitoring data, as new orders in the market are still light, factories with good early orders will arrange orders until December, and those with smaller orders will be placed in late November. Domestic sales are The speed of goods continues to slow down, and export orders are also subject to multiple pressures such as the epidemic, exchange rates, and shipping costs. The market is improving slowly. Therefore, some manufacturers have reduced their loads by about 10%. Fortunately, the inventory pressure of most manufacturers has been relieved in October. , so manufacturers are more willing to operate at high loads.
Weaving procurement is cautious, and the polyester market is cooling rapidly
With the end of the “Double Eleven” consumer festival, the terminal weaving market It has gradually entered the off-season, and overseas Christmas orders have accelerated to flow to major textile countries in Southeast Asia since August. They are no longer “hot” in previous years, further weakening the end market performance. Under such circumstances, weaving companies are naturally not as active in purchasing polyester and other raw materials as they were in early November.
Currently, according to data monitoring from Silkdu.com, the overall gray fabric inventory of weaving companies is around 28.8%. The reduction of inventory should have led to an increase in the price of gray fabrics on the market, but now the price of gray fabrics is slowly falling. The reason is that the current market is not too positive.
Under such market conditions, terminal textile companies are generally cautious about the procurement of raw materials. It is time for another promotion, so buy some period, and the raw materials stocked in the early stage are enough for end-use textile companies to slowly digest and quietly wait for promotional purchases. However, as the new year is approaching, many manufacturers of market goods will start to concentrate on stocking up for next year’s production. Prepare.
In the short term, upstream demand ultimately depends on changes in the terminal market. According to the rules of previous years, there will be another market trend before the Spring Festival, especially at this time. Foreign trade orders should also usher in a market, but now there are overseas epidemics, containers are difficult to grab, and 32 countries have canceled their inclusive policies for my country. The prospects for the foreign trade market are confusing. If the market before the end of this year does not come as expected, , then the inventory that was finally cleared during the production restriction will be high again, and the market will fall into a vicious cycle again.
Due to the confused mentality in the later period and the rapid decline of upstream raw materials, the market’s expectations for the decline of textile raw materials are also increasing. Polyester and yarn manufacturers began to relent in the face of sluggish polyester production and sales and declining costs, and continued the previous weekly sales model.
Currently, multiple uncertainties in the global situation also make it difficult for business owners to predict later overseas orders. The impact of the Sino-US trade war continues and is far-reaching. At the same time, the international epidemic in Europe and the United States is still serious, consumer demand has not increased significantly, and the impact on the industry is still relatively large. Domestic brands are not having a good time, and orders are not very stable. </p
