The new year is approaching, and the market situation in various places has been changing recently. Overall, shorts are greater than longs, and textile companies are facing difficulties in receiving orders.
“A long-standing problem” in textiles:Environmental protection and production restrictions are coming again!
Recently, according to market feedback, December some finishing plants in Wujiang, Jiangsu that did not have environmental impact assessment certificates were forced to suspend production due to environmental issues; and recently, it was once again heard that Shengze area required water spraying and water treatment without sewage discharge certificates. Relevant companies will suspend production for 10 days. As an important domestic textile production base, Wujiang region has a large supply of textiles in the market. Therefore, the introduction of environmental protection policies in Wujiang region is bound to bring certain fluctuations to the entire textile industry.
The temporary suspension of production will have a greater impact on the cloth boss. Looking back on the previous times when the company suddenly stopped production, the cloth boss was caught off guard. Weaving, printing and dyeing, and finishing play an important role in the production and trade of finished fabrics. Especially the production restriction at this end of the year will have a certain impact on the entire downstream textile industry.
The epidemic in Zhejiang has hit again, and the risk of uncertainty in market orders has increased!
Recently, the epidemic situation in Zhejiang has become urgent. The polyester filament production capacity in Zhejiang accounts for more than 70% of the country’s total production capacity, while Ningbo, Shaoxing and Xiaoshan account for about 28% of the country’s total production capacity. span>, among which the texturing companies are relatively concentrated in Ningbo, and the circular knitting machines, printing and dyeing companies are relatively concentrated in Xiaoshao area. Currently, polyester filament production companies in Ningbo have reduced production, and other companies have also expressed that they are considering reducing their workload based on the epidemic situation.
Some textile companies believe that although the possibility of an epidemic outbreak in Zhejiang and other places is low, if a textile company or operating company is affected by the epidemic, the normal supply and demand circulation of the upstream supply companies involved will be synchronized. Those with direct or indirect business contacts in Zhejiang are currently paying close attention to the epidemic situation and maintaining normal communication with ordering companies.
The epidemic has struck again in Zhejiang. Due to the improved level of prevention and control, the entry and exit of raw materials and finished products from weaving factories, as well as the normal delivery time of printing and dyeing factories may be affected to varying degrees, which will also increase the risk of market uncertainty. , which in turn affects the company’s order taking and production.
Due to the epidemic’s production restrictions and environmental protection shutdowns, the short-term operating rate may drop rapidly!
11 At the end of the month, some polyester companies in Jiangsu and Zhejiang reduced production to protect prices. Although 11 at the beginning of the month, Jiangsu and Fujian successively restarted their early shutdown equipment, and the industry started to increase slightly. However, recently some manufacturers have installed Production was reduced, and the polyester operating rate dropped to below 8% again.
At the same time, from the perspective of the downstream market, this year is a warm winter, and the domestic autumn and winter fabric market is particularly light. The inventories of weaving factories continue to rise, and the inventory is relatively large at around 2 months. Entering December, foreign trade orders have not seen a significant improvement, and the terminal weaving market has become sluggish. In addition, there has been a significant decrease in orders from printing and dyeing factories recently, and holidays may occur in the future or in advance. The overall production enthusiasm of weaving factories is not high. The current operating load of looms in Jiangsu and Zhejiang is around 65%.
In addition, as the New Year approaches, the market gradually enters the off-season, and the impact of factors such as the sharp appreciation of the RMB on foreign orders cannot be underestimated. Due to low profits, short delivery times, soaring freight rates and “hard to get a ticket”, it is not uncommon for Chinese textile and apparel companies to reject or abandon orders.
All in all, the chemical fiber textile market in Jiangsu and Zhejiang will see a decline in supply and demand in the short term, so the industry’s operating rate is expected to decline significantly.
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