Apparel / Textiles & Accessories

Recently, overseas epidemics have intensified, containers are difficult to find, ocean freight rates are skyrocketing, and bulk commodities are "diving"... Such news affects the hearts of textile people. The market was also slightly depressed due to the end of the peak season, but some people said that the recent market has improved slightly. In order to understand the market situation in depth, Silkdu.com conducted a market research.

Market demand has weakened, and the operating rate of weaving companies has declined slightly

This week, water jet looms and dyeing factories have restricted production in some areas. However, under the general market conditions, the scope of enterprises involved is relatively small, and the original operating rate of many enterprises is only 70% to 80%. There is almost no change for the enterprise. In fact, it is the market demand that affects the operating rate. After May, the transaction of grey fabrics has declined, accompanied by the decline in the operating rate and the rise of grey fabric inventories.

General Manager Li, who specializes in four-sided elasticity, said: "The operating rate in the factory is currently 85%. The operation of the water jet loom this week will affect us, but it is very small. The operating rate in April is 90%. The delivery of grey fabrics has slowed down, so the operating rate has been slightly adjusted. The machine itself has not been fully activated, so the effect of opening two and one stop will naturally be small."

There are also some companies that have reduced the number of goods sold, but they have not yet reduced the operating rate. Mr. Wang, a domestic sales company, said that the machines have been fully opened recently, except for some old machines that often break down, which will lead to work stoppages. Normally, they are fully opened. Although the inventory is rising day by day, it has not yet reached the real off-season, and it has not yet reached the time to start work.

Stretch fabrics are in the ascendant

Entering May, the speed of weaving companies' delivery of goods slowed down, and the number of orders received by trading companies gradually decreased, resulting in a slight weakness in the overall market. However, the stretch fabrics that have been hot since March, such as four-way stretch, high stretch, T400, T800 and other fabrics, are still hot recently, and the number of orders has decreased compared with the previous month, but there is no obvious downward trend. Dyeing factories still focus on stretch fabrics and become the main force in production.

"Compared to other fabrics, stretch fabrics have always been pretty good. Recently, it feels a bit weak. We are now finished with more than 100,000 meters of stretch fabrics, and we have not yet followed up with the big orders." Domestic sales company Wang said.

Trader Manager Yang also introduced: "In March and April, a total of three to four hundred thousand meters of four-sided bombs were received. Now there are only ten thousand four-sided orders on hand. The quantity is indeed decreasing, but customers said that they will continue to turn orders. ."

Nylon spun into a "rising star"

In addition, through research, we found that there are still many bright products in the market. For example, Nisifang, which has been forgotten by the market for a long time, has also suddenly successfully counterattacked and become a "rising star" in the market. Manager Wang, who specializes in nylon products, said, "Nylon has been selling well recently, and there is basically no inventory. The two specifications of 380T and 400T are the most popular, and they must be booked in advance."

The domestic sales company Wang also said: "Our company mainly produces nylon, pongee, imitation memory, T400, etc. Among them, the sales of nylon fabrics are good. Many traders predict that the market will be good in the second half of the year and winter fabrics will sell well. So recently Very popular in stocking."

The foreign trade industry has been repeatedly blocked, and orders are weak

Intensified overseas epidemics, difficult to find containers, and skyrocketing ocean freight rates have once again hit the foreign trade industry. For textile companies that export directly, containers are hard to find and freight rates are skyrocketing. Not only are costs soaring, but it is also difficult to guarantee on-time delivery. Mr. Yang, who is also a foreign trader, told the editor that the freight has not only increased a lot recently, but more importantly, the terminals are very crowded. When we enter the warehouse in Shanghai, the drivers have to line up to unload the goods, which is very time-consuming. When the goods arrived at the customer’s side, the terminal was also crowded. It took a lot of time to queue up to get the goods. So now it is shipped earlier than before, that is, the production lead time is shortened. The time is very tight and it is a test of people. !

Foreign trade companies that export indirectly have little impact on the surface. Most of the fabrics are sent to domestic garment factories and ready-made garments are re-exported, so they have not felt the pressure obviously. However, the instability of the foreign trade industry has always suppressed the demand of the entire textile industry, and the impact on all foreign trade companies is that the orders are still poor, and the level before the epidemic has not been restored.

Manager Wang, who specializes in nylon products, said: “Our foreign orders are all indirect exports, and the foreign trade orders received by customers are also average, so the following are not many for us, and the overall situation is not as good as the normal year. In fact, domestic sales are also unbearable. With little impact, most of the ready-made garments are ultimately mainly exported. If foreign demand is not good, there will naturally not be much improvement in the domestic market."

Indeed, in terms of terminal demand, overseas demand is far greater than domestic demand. In 2020, the cumulative export volume of China's textile and apparel reached US$291.21 billion, which is a very large amount. Therefore, overseas textile demand determines the domestic market in the second half of the year, and the cloth bosses are also planning the production and operation of the second half of the year.

The off-season is gradually approaching, and the stamina is slightly insufficient

However, the early cooling of the market has left cloth bosses lacking a little confidence in the future. Most people think it is difficult to improve and the off-season will deepen.

"May is almost over, and it looks like it's not getting better. It's getting hot immediately, and the market is getting worse." said the domestic sales company Wang.

"The market must be gradually weakening. Now the market order is also decreasing, and the overall demand will be further weakened, and the overall demand will be insufficient." said Mr. Li, who is mainly engaged in all-round elasticity.

"Then the weather gets hotter and hotter, the demand will definitely decrease, the price will not be able to sell, and will gradually decrease." Manager Wang, who specializes in nylon products, also thinks.

Although the market outlook is not optimistic, it is reasonable. With the hot weather, it will soon enter the traditional off-season of July and August, which seems to be a stage that the textile industry goes through every year and has long been accustomed to it. If the market improves during the traditional off-season, then it becomes an abnormal market. But in the face of the off-season, textile companies should still face it positively. The darkest moment of suffering has passed. What else can bring down the textile people?