The overall demand in the terminal apparel market is average due to the fact that the global economy has not fully recovered and the large inventory caused by last year’s epidemic. The order volume in the textile market is far less than that in the peak seasons of previous years, especially the weaving, printing and dyeing operation rates, which can directly reflect the market conditions.
The weaving start-up rate in Jiangsu and Zhejiang regions was the highest in the year during the same period in previous years. , basically above 80%, but this year’s 80% startup rate has almost become a ceiling. Except for a few areas, the overall startup rate is hovering around 70%. And the overall operating rate has already ended its rise, falling for two consecutive weeks. The market situation of printing and dyeing is also very similar. In previous years, the operating rate of 100% in March and April has become an insurmountable gap of 90% this year. At present, the overall operating rate of printing and dyeing only fluctuates around 86%.
The status of the weaving cluster is the best illustration of the current textile market. Compared with the strong willingness of polyester factories to ship, textile companies have concentrated and made large quantities of supplies before the end of April or even early May. The enthusiasm of the warehouse is not high, and the strategy of “buy as you use, purchase according to the order” is the mainstream.
Jiangsu Gray Fabric: The current operation is normal, and the operating rate is close to 100%. The current market orders are about 20 days old, among which the export orders have dropped significantly, while the domestic market is relatively stable. Product inventory is about 1 month’s worth of production. The market price is stable and weak compared with half a month ago, and profits have declined compared with the previous month. The order situation is expected to slow down further in the next two months, and market expectations are not optimistic.
Guangdong Denim: The price of denim yarn is stable, the price of indigo dye is relatively strong, the orders are tepid, and the production schedule is about 20 days, which is slightly lower than last month. In order to With the increase in order volume, the frequency of companies taking the initiative to market will increase. Fabric machines are operating at full capacity, shipments are slowing down, and fabric profits are stable. The price of indigo dye has been raised substantially twice and remains at around 50,000 yuan/ton. The production cost of denim has increased, and price transmission still needs a process. External quotations for fabric prices have been slow to increase, and companies are cautious about market recovery.
Lanxi gray fabric: The overall market is light, and the machines are operating at full capacity. In order to maintain production, companies mainly produce conventional varieties, with high product inventories, few downstream orders, and relatively low corporate profits. Low, the market outlook is expected to be dull.
Jiangsu yarn-dyed fabrics: The yarn-dyed fabric market continues to be weak, and the start-up is basically normal. Orders can generally be scheduled until the end of May. Small orders account for a large proportion, and subsequent orders are slightly weak. Spot Inventories have increased and product prices have remained basically stable. At present, as the overall domestic and foreign markets are not as good as expected, companies have limited confidence in the market outlook, and most of them adopt a wait-and-see attitude.
Hubei pure cotton cloth: At present, the opening rate of enterprises is around 80%, and downstream orders are cautious, mainly small orders and urgent orders. The willingness to purchase raw materials is not strong, and the company is still digesting the high-priced cotton purchased in the early stage. The demand side has not improved much, and the market buying and selling atmosphere is weak in the short term. Based on the current production varieties, the off-season is expected to last until June.
With the market in the peak season like this, what kind of performance can we expect from the market in the off-season that follows? Judging from the feedback from downstream small and medium-sized yarn mills and weaving companies, the current difficulties encountered can be summarized as follows:
First, since January 2021, banks have issued The intensity of credit support has declined significantly compared with the first half of 2020, and the difficulty of borrowing has gradually increased (“repay first, then borrow” operation is the main operation, and there is little hope of deferred loan repayment or “borrow new and repay old”). Some textile companies said The pressure on capital flow continues to rise;
Secondly, with the release of some domestic sales orders for autumn and winter, although cotton yarn and gray fabrics have accumulated inventory, it is not outstanding, and few companies have reduced or suspended production in the near future. However, the cash flow of end-consumer customers such as fabrics, clothing and foreign trade companies is generally tight, and it is increasingly difficult for gauze to be paid in time. Some customers even proposed multiple payment methods such as credit, 1-3 month account terms, letters of credit, etc.;
Third, the price and cost reduction of foreign trade orders or processing orders distributed by large companies are relatively serious. Although the general contract quantity is large, the processing period is long, and the payment is relatively proportional, Timely, but considering that profits are not high, RMB appreciation and raw materials may still fluctuate significantly in the second and third quarters of 2021, textile companies are unwilling and dare not take long-term orders;
Fourth, compared with large textile enterprises, it is “difficult for small and medium-sized enterprises to recruit, retain, and train talents.” Therefore, the problem of “labor shortage” is relatively common. A yarn factory in Handan, Hebei Province said that the current job vacancy rate is 10%-15%. On the one hand, it is limited by the working environment, office conditions, and factory location. Young and educated people are not willing to enter the factory; on the other hand, salary and benefits It is also lower than that of large factories or enterprises in southeastern coastal areas.
Textile companies generally express a lack of confidence in the market outlook. At present, the epidemic situation in many overseas countries is still recurring, and foreign trade orders are improving slowly. At the same time, the market performance in the peak seasons of March and April is so average, and then the off-season orders may further decrease. </p
