Recently, the sudden emergence of the new coronavirus mutation has once again plunged the world into panic. International crude oil plummeted, commodity prices fell, and polyester yarn fell into a promotional curse… Under the influence of this, the textile market has also undergone many changes.
The atmosphere for accepting orders has weakened, the operating rate has declined, and inventory has increased.
With the arrival of December, the textile market seems to have entered the final stage, with orders plummeting. With the decrease in orders, the operating rate of weaving enterprises is average and showing a downward trend. At present, the overall operating rate has declined slightly. According to data monitoring from China Silk City Network, the current operating rate of water-jet and air-jet looms in Shengze is 72%, down 1% from last week. Although the decline is small, it also indicates that the market is gradually weakening.
After three months of power and production restrictions in the early stage, production was finally able to resume normal production. Even with few orders and average shipments, most companies were still unwilling to reduce operations. Therefore, looking at the opening rate alone, it is not obvious how the market is receiving orders.
Changes in inventory can better reflect recent market trends. According to data monitoring from China Silk City Network, the current inventory of gray fabrics in water-jet and air-jet weaving enterprises in Shengze is about 30 days. An increase of 0.2 days compared with last week and an increase of 1.7 days compared with the same period last month.
One
Manager Wang, who specializes in nylon gray fabrics, said: “Recently, the supply of gray fabrics has been obviously slow. The gray fabrics were very tight before, and some specifications were out of stock, but now they are all in stock, with about 5 million meters of inventory. The machines in the factory are fully operational, and we The factory is always fully open unless there are special circumstances.”
Two
Boss Gao, who specializes in windproof clothing and down jacket fabrics, said: “Currently, the factory’s operating rate is 80%. Orders are still good and can last until the end of the year, but orders for next year have not yet been received. The recent shipments are better than in the previous period, mainly in winter. There has been a little more fabric for cold-proof clothing recently. But there is still inventory, at least 30 days’ supply, and there are some in various specifications.”
three
“The machines in the factory are now fully operational, and the orders for the three months of September, October, and November are stable, which is relatively good this year. The inventory is now sufficient, with a supply of about 30 days, and regular production of high-quality colors is also prepared. The inventory is definitely higher than before. Increase.” Manager Chen, who produces polyester and nylon gray fabrics, told the editor.
Centralized stocking at the end of the year no longer exists, production is on demand
In terms of order taking, as the end of the year approaches and the closing stage approaches, the market will naturally experience some lulls in taking orders. Some companies are doing well in taking orders, while others are deserted.
According to feedback from enterprises, there are currently very few orders on hand. The centralized stocking that was originally planned at the end of the year has been changed to on-demand production, and the production method is flexibly changed according to market conditions. The lack of stocking also shows that there is no shortage of inventory in the current market, and textile professionals are not optimistic about the market next year. Especially in October, polyester filament prices continued to rise, causing many manufacturers to purchase large quantities of raw materials, which have not yet been used up.
Boss Bu has something to say
Boss Gao said that the raw materials purchased in the early stage have not been used up, and raw materials of various specifications are in stock, so there is basically no need to buy raw materials. So don’t stock up on goods, just buy as required when special orders come. And he also said that he will not stock up before the year, unless there is an order. Now the market sometimes starts stocking up from the middle of the year, not necessarily at the end of the year.
Manager Chen said: “The inventory level of raw materials will be maintained at a certain level, and we will not stock up on more goods. We will mainly buy on demand. We will not stock up before the year, and there will only be some orders with short production cycles that are rushed to ship.”
At the same time, under the influence of market conditions and polyester filament prices, gray fabric prices continue to fall, with a very large drop. Polyester products can reach about 20%, and nylon products can reach about 30%.
Exports are increasing again, which may affect subsequent orders
The recently discovered new strain of Omicron has the ability to infect more quickly than Delta. Cases have appeared in many foreign countries, and some countries have even closed entry. For textile companies, the biggest problem is that they are facing large-scale suspension of flights. question.
In terms of exports, sea freight prices have risen again, which has a polarizing impact on enterprises. If enterprises pay for themselves to find containers, the impact will be great. However, many foreign trade companies say that the shipping costs are borne by the customers themselves. In this case, the direct impact on the company is not very great. However, no matter who bears the freight, the increase in freight will increase the cost of fabrics and clothing, ultimately leading to a reduction in orders from end-use apparel companies.
Boss Gao told the editor that if foreign trade companies pay the freight by themselves, the impact will be great, but many companies cannot afford to go out of the “counter”, so the customers themselves are responsible. Customers generally do not use sea transportation when shipping, because most of our exports are to Vietnam, and most customers choose to use land transportation.
Manager Wang said: “Our company’s fabrics are sent to domestic garment factories, and the garment factories finally export the garments, so the export has nothing to do with us and is the responsibility of the garment factory. However, the freight is too high and containers are difficult to find, which will also lead to customers placing orders. The overall demand will decrease. Our order data will also be affected, so we hope that freight rates will not fluctuate again.”
In terms of market outlook, most textile companies said that the epidemic is currently the biggest factor affecting the market. Affected by the overseas epidemic, some orders may be canceled or reduced. Of course, some orders may also be canceled or reduced.Enterprises are optimistic about the first half of next year, because the current raw material prices are on a downward trend, and the overall price of fabrics will fall next year, which is likely to increase demand.
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