August is coming to an end. At this time in previous years, textile people have begun to stock up for the “Golden Nine and Silver Ten” period in the traditional textile industry to prepare for this war. Even though the textile off-season in July and August is about to pass, companies have not stocked up. There are signs of goods, will the “Golden Nine” of the traditional textile industry come as expected?
Foreign trade exports decreased
No one stocked up on raw material promotions
The export value of textile yarns, fabrics and products in July fell by 33.6% compared with the same period last year. Most textile companies are struggling to support themselves during the off-season. But even so, the costs of textile production have not compromised due to lack of downstream demand. The primary cost of textile production is the price of various raw materials. Supported by the recovery of the downstream market after the Spring Festival, the prices of various raw materials rose rapidly, creating the highest price so far, although the price of polyester yarn began to gradually fall. However, the rally resumed at the end of June and was once close to the highest price this year at the end of July. However, this wave of gains is only caused by the rising cost of upstream crude oil. The downstream textile market is still struggling in the off-season, which cannot provide strong support for this wave of prices.
A boss who specializes in the industry and trade of imitation silk said: “The market is so bad now. The warehouse is full of inventory and the promotion of raw materials has the effect of During this period of uncertainty, we will not consider whether to stock up on raw materials or buy according to demand. If the current false high of raw materials suddenly bursts, then these raw materials will be lost in our hands, and we will not be able to tell the pain.”
Sea freight rates will continue to rise in September
Gold in October This week will further push up freight rates
Affected by the epidemic, the shipping market has been severely distorted. The original shipping freight from China to the United States has increased nearly five times, reaching as high as nearly 20,000 yuan. Based on such high prices, major shipping companies plan to continue to increase monthly fees in September and October. With the global vaccination rate gradually increasing and the epidemic gradually easing, this chaotic phenomenon has not only not eased but has become worse. To make matters worse, the sea freight for some foreign orders is even higher than the cost of the product, making foreign trade companies miserable.
“Nowadays, I don’t even dare to accept the orders placed by foreign countries. I can’t even send out the finished products. Customers are pressing hard, and I still lose money even if I accept the orders.” A textile boss who specializes in foreign trade said.
However, the cold foreign trade market is not necessarily entirely due to the epidemic. A salesperson from a dyeing factory told us: “Today’s foreign trade orders are all placed by foreign general agents. One order costs millions of meters, and the dyeing fee is half of what it used to be. But we have to accept the orders. If we don’t accept the customers, we will arrive.” Other factories have done it.” We still have to look forward to the market situation from October to early next year.
In general, the market prospects in September may still not be very optimistic. As shipping prices rise and profits decline, foreign trade textile bosses may Orders that need to wait until “Christmas” after the National Day in October bring a hint of winter “warm breeze” to the textile industry.
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