May is coming to an end, and the textile market situation this month can basically be concluded. The decrease in orders is the most intuitive feeling of many textile people. After all, there were not many surprises in the “gold, three, silver and four” markets at the beginning of the year, and the possibility of a reversal in the subsequent off-season market was also low. There is no sign of the return of orders from India, which the market had high hopes for in the early stage. At this time of absence of orders in spring, summer, autumn and winter, the market seems to be completely slipping into the off-season.
According to the person in charge of a textile enterprise, the recent orders have been getting worse day by day. At present, except for a little proofing, there are basically no orders in progress. It feels like there are all kinds of goods being pulled on the road. There are a lot fewer trucks. Regarding the order situation in the market, the performance of printing and dyeing factories is the most obvious. When the amount of incoming warehouses increases, the operating rate will immediately pick up. On the contrary, it will drop rapidly. The recent operating rate of dyeing plants has been in a clear downward trend.
The start-up rate of printing and dyeing fell to the lowest after the year
Printing and dyeing this year The market also had its own prosperous moment in early March, with stockpiles of gray fabrics bursting out, dyeing fees rising, and urgent queues… This happened in various dyeing factories, but the overall busyness and duration were still quite different from previous years. The 100% availability rate that often occurred in March and April of previous years has disappeared this year, and has not even reached 90%. The market’s average highest availability rate after the year is only 88%.
With the end of the traditional peak season recently, the operating rate of printing and dyeing factories has plummeted. The operating rate was 85% on May 13 and 83% on May 20. However, the current average operating rate of printing and dyeing is only about 81%, which means that basically one-fifth of the dye vats on the market are idle. The current operating rate of 81% can basically be regarded as the lowest operating rate in the textile market after the new year. The printing and dyeing market after the new year will only have an operating rate lower than 80% at the beginning of the year, May Day and the environmental protection period. But now, without any special reasons, the printing and dyeing operation rate has reached the edge of 80%.
According to the person in charge of a dyeing factory, from April to the first half of May, the factory’s daily incoming gray fabrics were relatively stable, basically about 700,000 meters. A small amount can satisfy all the dye vats in the factory without causing congestion in production. However, the factory activity has begun to decrease recently. Since the early orders are mainly for large-volume market goods, once the order is reduced, the quantity is not small, and the factory’s operating rate has dropped by 10%-20%.
But what is surprising is that the recent weaving operating rate has ended its decline in the past two months and has begun to rebound slightly. Does the market have us? Perceived improvement?
The weaving operation rate bottomed out
The weaving operation rate in Jiangsu and Zhejiang provinces It quickly rebounded to a high level after the year, but the duration was quite limited, far less than the high fluctuations of about a month in previous years. Basically, after reaching a high point, it started a downward channel during the Qingming Festival in early April. This downward trend has continued until now, but recently the operating rates of various textile clusters have begun to rebound significantly. Is it because orders have been placed to the weaving end because terminal demand has improved? This is not the case.
The current weaving operating rate has been adjusted back, and more is being stocked and prepared for the second half of the year, for the autumn and winter market. Making preparations. Especially the poor textile market in the first half of this year has led many textile people to place their hopes on the autumn and winter market in the second half of the year. In addition, according to the market trend last year, after the high temperature in summer, the global epidemic situation will improve in the second half of the year. At the same time, the backlog of textile order demand for half a year will also explode. It is reasonable to make preparations in advance for the upcoming peak season.
Recent changes in polyester production and sales can also be seen. Polyester manufacturers have had a total of 6 price reductions since April. Although the overall production and sales in May are less than those in April, each production and sales is increasing, which to some extent also shows that the confidence of weaving is gradually recovering and the demand for raw materials is rebounding. It’s just that these have little to do with the current textile market. From another perspective, the current weaving market is overdrafting the future textile market. And if we carefully analyze the trend of the weaving operating rate, we will find that the low level of the operating rate during the year will appear in July and August. June is coming, and the current rebound in operating rates may not last long. </p
