Home >

After The May 1St, The Domestic Market Of Grey Cloth Took The Lead, And The Textile Market Is Now Showing Serious Polarization.

2020/5/12 17:01:00 2

Grey Cloth Domestic Market Textile Market

The past may day is the longest holiday for all textile workers. The three day is very common, five days, many days, and seven days. But holidays are not always accompanied by happiness and joy for textile workers, such as this time. According to research enterprises, affected by overseas epidemic, orders have generally been reduced by at least 3 per cent so far this year, and more enterprises are even around 5. Order reduction, inventory backlog and lack of funds continue to date from the beginning of the resumption of work, which has made it difficult for some textile people to relax and take a long vacation.

Now that the holiday has ended for more than a week, textile workers have already taken their positions, and some countries have begun to release restrictions on the world. Are there any signs of improvement in fabric demand?

Signs of improvement in foreign trade are unclear

Domestic trade takes the lead

Foreign trade has always been an important part of textile orders. This year's all textile off-season is so serious that the main reason is the weakening demand caused by the outbreak of overseas epidemic. Recently, although many countries have begun to gradually liberate travel restrictions, the economy has begun to recover slowly. But "foreign trade orders have not improved", almost all of the respondents were unified answer.

Foreign trade orders have not yet improved, on the one hand, because the restrictions on the liberalization of travel are now limited in Norway, Spain and Austria. However, large demand households such as the United States have not yet fully released restrictions, and a large number of orders can not be delivered immediately.

On the other hand, even if the overseas countries are free from restrictions, economic recovery will take some time. In particular, the pace of life and production in some countries abroad is relatively slow, and the time needed for resuming production and resuming work may take longer. This also leads to the fact that the textile foreign trade order has not been transmitted to the fabric end in time.

However, recent domestic trade orders have seen many bright spots. According to the person in charge of a company, they are making nylon yarn. Although there are no foreign trade orders in the near future, there are more than a hundred million rice orders in China. Another textile enterprise also has the same feeling. They mainly do simulation silk and other products. Enterprises have not yet carried out foreign trade orders, but now the domestic women's wear fabric is more than 300 thousand meters per month.

The signs of loosening in the domestic market have been very obvious. As China's economy has stepped out of the epidemic, it has gradually recovered. Orders for domestic trade will break out in full, and foreign orders will also be issued with the resumption of overseas production.

Grey fabric inventory polarization

The boot rate is still high.

Unlike most textile enterprises during the May Day holiday, there are not many holidays for weaving enterprises. Research enterprises even have a general holiday time is not long, mostly in about 1 days.

And inventory is unified and differentiated. There are only 100 thousand meters of grey fabric inventory, not even some, and others in 50 days, or even 60 days. This difference is mainly due to the different source of orders. Enterprises with less inventory of grey fabrics are mostly due to the large number of domestic orders currently being done, which consumed most of the inventory. Enterprises that relied entirely on foreign trade orders were not in demand at that time.

Although there are obvious differences among the enterprises in the inventory of grey fabrics, the rate of start-up is still at a high level. Research enterprises, some of the weaving mill in 8 or so, and some even 100% boot production, and there is no production plan in the short term.

In the final analysis, it is still a matter of cost. Although we have always thought that production cuts and production cuts will definitely reduce costs and reduce expenditure, it is not enough. Although factory start-up can not avoid these expenditures, there are also grey fabric output, and most of them are easy to store and suitable for long time stacking. However, a single stop production can not avoid the expenses of rent, machine depreciation, social security and staff subsidies, but also face the embarrassing situation of the output of one meter fabric. Therefore, it is understandable that the factory will not stop production and start high construction.

High starting rate of weaving

Raw material demand is not strong.

The starting rate of weaving enterprises has always been the vane of raw material demand. The rate of start-up is high, and the demand for raw materials is large, and the demand for raw materials is low. However, although the start-up rate of this research enterprise is generally high, the enthusiasm of raw material purchase is relatively low.

"Our stock of grey cloth has 60 days. At present, the looms are full, but the raw material is only 10 days, or it has just been bought recently." Said a person in charge of a weaving factory. Another textile mill's recent orders can also be made. The stock of grey cloth is not much, only about 100 thousand meters, but the material is only enough for 3 days. The vast majority of weaving factories currently treat raw materials with the same attitude as raw materials. The longest storage will not exceed 15 days, and the enthusiasm for buying is generally not high.

In fact, the demand for raw materials in textile mills is not very strong, mainly because of the negative impact of continuous low price of raw materials. According to the owner of a weaving factory, they stored 30 thousand tons of raw materials a year ago, but the epidemic situation and the crude oil price war later led to a continuous decline in raw material prices. They lose their day with their raw materials, and now they have no confidence in reserve materials.

In May 5th, the price of raw materials was affected by the recovery of crude oil prices, and the polyester filament rose by 50-150 yuan / ton. The market that has always been "buying up or not buying" is also showing general performance. After two days of production and marketing, the production and marketing is more prominent, and it immediately returns to a slack. Before the demand for orders has not improved substantially, it is hard to stimulate the enthusiasm of the mills to purchase raw materials in large quantities just because of the rise and fall of raw material prices.

Although the current textile market is still in the off-season, the frequent emergence of domestic trade orders has begun to pry the whole market, and the inventory of grey cloth has been consumed, and the rate of opening is still high. And with the liberalization of travel restrictions on the gradual increase in the number of countries, deepening the resumption of work, the large number of orders for foreign trade is also a probability event. Until the fabric needs really start to recover, the upstream raw material prices may really open up the rising channel, and production and marketing thrive!