According to feedback from some clothing, fabric, and weaving companies in Guangdong, Jiangsu and Zhejiang, etc., a certain amount of domestic sales orders have been received since early July. It is expected that the domestic demand market for cotton textiles and cotton clothing will stabilize and rebound in August/September. However, due to the emergence of the domestic epidemic, Against the backdrop of repeated changes, sharp fluctuations in raw material costs and consumption downgrades, there are very few medium- to long-term and large-volume orders, which are still mainly “short, small, precise and powerful”, requiring companies to follow the “baton” of customer demand at all times. Adjustment; as of now, the arrival of 2022 Christmas and Easter orders from buyers and retailers such as the United States/EU is still not obvious. Some foreign trade companies and export-oriented enterprises are actively communicating and negotiating with foreign customers, and look forward to textile and clothing export orders as soon as possible issued to boost confidence in the cotton textile industry chain.
It is worth noting that there are two uncertain factors that are unfavorable to downstream orders in the near future: First, some areas such as Hangzhou, Shaoxing, Haining, Jiangsu, and Guangdong have recently received notices of power cuts, and weaving factories, printing and dyeing factories, etc. have high consumption. The electricity industry will be affected to a certain extent, and cotton textile and clothing companies need to fully consider power restrictions when accepting orders. In addition, electricity prices in some provinces have started to rise, which has undoubtedly increased the costs of production companies (the highest increase can reach 0.1 yuan/kWh), and companies may respond by off-peak electricity consumption; secondly, under the Federal Reserve’s aggressive interest rate hikes, the RMB The exchange rate not only increases the pressure of depreciation, but may also fluctuate significantly, which is unfavorable for accepting orders. Data released by the U.S. Department of Labor on the 13th showed that the U.S. Consumer Price Index (CPI) rose 1.3% month-on-month in June, a new high since September 2005; it rose 9.1% year-on-year, the largest increase since November 1981. Therefore, in July Will the interest rates be raised by 75 basis points or 100 basis points at the interest rate meeting?
Judging from the survey, due to the continued high temperatures in parts of East, Central and South China, coupled with rising electricity prices, power rationing and other factors, some weaving companies that currently have relatively few orders and cannot meet the operating rate of more than 50% plan to give employees “high temperature relief”. “False”, the initial time is generally 7-15 days, which may lead to a continued decline in cotton yarn consumer demand in the short term, which is not conducive to the stabilization of cotton yarn and cotton prices.
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