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Since the beginning of June, the recovery of foreign trade orders has remained slow, and the price pressure has been severe. The retaliatory rebound expected by textile companies has not arrived as scheduled. In July and August, the traditional textile season will usher again. Stability and cash protection are the main factors, and some companies plan to lower the operating rate again to cope with the next test.
The lack of orders, the dyeing factory and the weaving factory are not fully opened
After the end of May, the orders of weaving companies have dropped to a large extent compared with the beginning of May. According to the data inspection of China Silk Capital, as of May 29, the operating rate of water jet looms in Jiangsu and Zhejiang was 75%, a decrease of nearly 15% compared with the same period in previous years.
The editor made a survey last week about the start-up rate of weaving companies and the subsequent measures to reduce production. A total of nearly 200 weaving companies participated.
The survey shows that 31% of the weaving companies have fully opened the loom in the recent stage, 16% of the weaving companies have a 70% to 90% startup rate at the current stage, and 27% of the weaving companies have a 50% to 70% startup rate. , And the remaining 26% of weaving companies have less than 50% operating rate.
Among the companies surveyed, 69% of the weaving companies have plans to reduce the start-up rate in June and July.
We can clearly see that under the situation where the new crown epidemic is still raging, the actual orders of the weaving enterprises are lacking, and the dyeing factory has not recovered its recent orders.
After investigation, it was found that half of the dyeing plants are now opened, and a few more are opened by 70 to 80%. They are not busy and will not affect the order.
Order recovery is slow, ensuring production and reducing losses are the top priority!
Our company is making some high-end fabrics such as silk, rayon, acetic acid, etc., and they are basically foreign trade exports, the exporting country is mainly the United States. In the past years, our annual sales could be more than 100 million yuan, but this year because of the severe pneumonia epidemic, the United States is also the hardest hit area, our orders have dropped by more than 90%," said a trader in charge. There are many, the production costs of enterprises are also high, and the current turnover is difficult to ensure normal production and operation. At present, they are completely supporting. As for how long they can last, everyone has little confidence.
With such a large reduction in orders, companies will inevitably be at a loss. Of course, companies in this state are not the only ones, and the number is not small, especially for textile companies that specialize in foreign trade or have a large proportion of foreign trade.
According to the data analysis of the Bureau of Statistics, the number of loss-making enterprises in our textile industry has been relatively stable in the past two years, about 3,000. However, the number of loss-making textile companies has rapidly increased this year, and it reached about 6,500 in February and March. Although the number of losses in April decreased slightly, it has not returned to the normal number.
Loss seems to be a problem that is difficult for our textile industry to avoid. How to avoid losses or reduce losses is now the top priority of all textile companies.
Some companies said that the weak market is expected. At present, foreign trade has not recovered, and it can even be said that it is still in stagnation, which will have a great impact on the entire textile market. Many domestic trading companies and apparel companies, most of the orders they have come from abroad, so foreign trade has not resumed, the market is difficult to improve.
After June, the traditional off-season is about to enter, and textile enterprises are fully preparing for the off-season. At present, the orders of downstream enterprises are mainly autumn and winter clothing and bedding, and exports of textiles and clothing to Europe, the United States, Japan and South Korea and other countries are still slowly recovering.
Although cotton prices both at home and abroad have increased to varying degrees last week, Zheng Mian’s main September contract broke the 12,000 yuan/ton integer mark, triggering a rapid increase in spot cotton prices, but consumer customers such as grey cloths and apparel are very acceptable Limited, so gauze profits fell from April to May. Considering that July and August are the off-season of the cotton textile industry, coupled with concerns about the resurgence of the epidemic in the second half of the year and greater employment pressure and other factors, textile companies' willingness to raise prices is not strong. "To ensure production, stability, and cash flow" is Urgent.
According to a foreign trade company in Suzhou, Jiangsu, as of now, the order volume of several major European customers such as Spain and Italy has returned to 40-50% of the same period last year. Not only are there large orders, but the contract price is very low (the purchaser will Factors such as the depreciation of the RMB exchange rate are taken into account). Due to concerns about continuous rise in raw material prices, high labor costs, frequent commissioning of equipment due to varieties, and impact on production capacity, domestic textile and apparel companies are more repulsive to small, multi-batch, non-profit orders, and some companies prefer to reduce production and downtime. It is not intended to accept such export orders.
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