In 2020, the market’s predictions for 2021 are all positive. Especially in the second half of 2020, the textile market has improved significantly. With vaccines starting to be put into use in various countries, textile people are gearing up. Be prepared to flex your muscles under retaliatory consumption in 2021. But most of 2021 has passed, and the market has not developed in the direction we expected.
According to data released by the National Bureau of Statistics, from January to July 2021, the cumulative exports of textiles and clothing were 1.09021 billion yuan, a year-on-year decrease of -0.93%, and an increase of 5.5% over the same period in 2019. , of which textile exports were 519.89 billion yuan, a decrease of 17.94%, an increase of 10.13% over the same period in 2019, and clothing exports were 570.32 billion yuan, an increase of 22.17%, an increase of 1.61% over the same period in 2019.
In the past July, textile and clothing exports were 181.39 billion yuan, a decrease of 18.24%, a month-on-month increase of 1.82%, and a decrease of 4.21% compared with the same period in 2019. Among them, textile exports were 75.06 billion yuan, a decrease of 3.373%. %, a month-on-month decrease of 6.90%, an increase of 1.30% over the same period in 2019. Clothing exports were 106.33 billion yuan, a decrease of 2.08%, a month-on-month increase of 9.03%, and a decrease of 7.76% over the same period in 2019.
The textile export data from January to July was actually not as good as during the epidemic last year. The data in July was even worse. Not only did it drop by more than one-third year-on-year in July last year, but it also dropped from June. Nearly 7%. The textile market situation is not only inferior to previous years, but also worse month by month. Under such export data, the real performance of the textile market is obviously not optimistic.
The textile market is not good and production costs are not falling
According to the person in charge of a weaving factory that produces peach skin and pongee: “The factory’s sales this year are not better than last year during the epidemic. How much. It is currently down 30% year-on-year, and the operating rate has dropped 30% compared to July.” There are many companies in the textile market that have the same situation in August, and most textile companies are struggling to support themselves during the off-season. . But even so, the costs of textile production have not compromised due to lack of downstream demand. The primary cost of textile production is the price of various raw materials. Supported by the recovery of the downstream market after the Spring Festival, the prices of various raw materials rose rapidly, creating the highest price so far, although the price of polyester yarn began to gradually fall. However, the rally resumed at the end of June and was once close to the highest price this year at the end of July. However, this wave of gains is only caused by the rising cost of upstream crude oil. The downstream textile market is still struggling in the off-season, which cannot provide strong support for this wave of prices.
ThepriceofpolyesteryarnbegantoadjustslightlyattheendofJulyandthebeginningofAugust.Thepriceofrawmaterialshasindeeddropped,butthiswaveofgoodnewscannotbefeltbytextilepeople.Duetotherecentpoortextilemarket,weavingfactoriesaregenerallyworriedaboutpurchasingrawmaterials,andmostofthemadoptawait-and-seeattitude.Ifdownstreampeopleareunwillingtobuy,theywillnaturallynotfeelthebenefitsofpricecuts.However,onthecontrary,themarketforspandexproductshasalwaysbeeninhighdemand,butpricesshownosignoffalling.Evenifthecurrenttextilemarketisnotgoodandtheexportdataisnotideal,itwillnotaffecttheweeklyriseofspandex.Itisobviousthatthepriceofrawmaterialshasindeeddropped,butinfactthetextilemarkethasnotfeltthecostdropbecausethepriceofspandex,whereordersareconcentrated,isstillrising.Atthesametime,textileworkershavetofacetheenvironmentalprotectionproductionrestrictionsthatoftenoccurinsummerandthereductioninproductioncapacitycausedbyheavyrainsandtyphoons.Ofcourse,thedoublingofseafreighthasalsoseverelyaffectedtheenthusiasmfortextileforeigntradeexports.Itisdifficulttomakeorders,andthemarketisonlybasedonprice
Themarketsituationisnotsatisfactory,andproductioncostshavenotyetcomedown.Theprofitsoftextileworkers’ordershavenaturallybeencompressedtoacertainextent.Inordertoensuretheirownprofitmargins,textileworkersbegantoreduceproductioncostsinallaspects.Ofcourse,whenitcomestotheweavingprocess,onlyprintinganddyeingcanreducethecostoftextileorders.Accordingtoapersoninchargeofatextilecompany,theymainlyproducefour-wayelasticproducts.Althoughthemarketforsuchproductshasbeengoodthisyear,therehasbeenacoolingdownrecently.Moreover,thepriceofspandexhasrisentoomuch,andthepriceoftheirfabricscannotrise.Forthisreason,hecanonlyfindwaystomaintainprofitsbypayingfordyeingexpenses.Thenearbydyeingfactoriesobviouslycannotcontinuetooperate,andthedyeingfeesofthemoreremoteprintinganddyeingfactoriesinthesurroundingareasmayvarybynearly1yuan/meter.Thischeaper1yuanisarealprofit,sotheygotowhicheverdyeingfactoryischeaper,nolongercaringaboutthelocationordistance.
Not only textile people are looking for low prices everywhere, but also end customers More realistic in terms of price. According to another textile worker, one of their old customers who had been with the company for six or seven years was about to lose. The main reason for the loss was price. Customers’ own production costs have also risen sharply this year. For this reason, they are also trying to reduce costs, so fabric prices have become a key focus. The customer searched for low-price suppliers in the Jiangsu and Zhejiang regions and finally found a fabric supplier with lower prices. Under the influence of weaving costs, downstream textile links are trying to ensure their own profits by compressing other links, which will ultimately lead to a market price war. Now that the global epidemic has worsened again, it is difficult for foreign trade to see a big improvement in the short term. The future of the textile market is even more confusing. The market in the second half of the year will be…�The competition is likely to become more intense.
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