These two days have been dark for textile people, as overseas epidemics continue to escalate. Among them, the fatality rate of COVID-19 in Italy has now exceeded 4.96%, the highest in the world. As the epidemic spreads, alarms continue to sound around the world, and Academician Zhong Nanshan also said: It is estimated that the development of the global epidemic will continue until at least June.
As for crude oil, it also suffered an epic plunge! March 9th is a day that will probably go down in history. Brent crude oil futures fell 31% (about $14/barrel) in just a few seconds after the opening of the Asian trading session, hitting a low of $31.02/barrel, experiencing the most violent sell-off in history. Since crude oil is the most upstream of the textile industry chain, the rise and fall of crude oil prices will greatly affect the textile market. Sure enough, as soon as the market opened on March 9, PTA and ethylene glycol both dropped by the limit! Polyester also started to fall.
At 21:30 on the evening of March 9, U.S. stocks opened sharply, with the Dow Jones Industrial Average falling nearly 1,800 points. The largest intraday drop once exceeded 2,000 points, the Nasdaq fell more than 7%, and the S&P fell 6.7%.
I have to say that 2020 is a magical year! It makes the textile boss who is already walking on thin ice even more trembling!
U.S. stocks plummeted, triggering global panic!
The decline in U.S. stocks triggered a decline in global stock markets. Even our A-shares were not immune. For a time, tens of millions of investors were selling in a hurry. This pessimism will spread. The U.S. stock market is the leader of the world’s stock market and the United States is the world’s central bank. The weakness of the U.S. stock market will spread to other countries. Other countries will also feel that there is a risk and fall into panic selling.
A textile boss predicted: “If this wave of decline can be stopped, then the problem will not be big. The most fearful thing is that the decline will continue. At the end of the decline, the money in everyone’s pockets will shrink. The more money they lack, the more money they will have.” Instead of buying, they sold off assets, resulting in unsold goods and falling housing prices. The economic crisis in 2008 is very likely to reoccur. Soon, textile and clothing exports will also decrease, and our exports will face another blow.”
With the economic depression and the spread of the epidemic, this year’s foreign trade exports may be even more difficult!
We planned to establish the Ministry of Foreign Trade years ago, but whether it can be done now is still a question!
<img crossorigin="anonymous" data-preview-src=""data-preview-group="1"src="data:image/gif;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAYAAAAfFcSJAAAADUlEQVQImWNgYGBgAAAABQABh6FO1AAAAABJRU5ErkJggg=="_width=100%data-w="21"data-type="png" data-data-preview-src="" data-preview-group="1" src="https://mmbiz.qpic/mmbiz_png/ A textile boss Revealed: "I have hired a lot of people a year ago, including salespersons, order managers, merchandisers, etc. , basically a team is in place. They have also changed their appearance to a larger one and are preparing to establish a foreign trade department. However, looking at the situation this year, it is still unknown whether it can be done. "Another foreign trade businessman is also very anxious," Originally, there should be more or less orders at this time, but since the opening this year, customers have not placed any orders. The profit of textile industry is low, especially in the past two years, many companies have closed down, which makes me very worried. Can we survive this year?"
In 2019, the textile market began to slump, and the label of “the peak season is not prosperous and the off-season becomes longer” is difficult to tear off. In terms of foreign trade, it is mainly affected by the weakening of external demand and the Sino-US trade Due to the impact of the war and other factors, the export situation is relatively severe. According to China Customs data, my country’s cumulative export volume of textiles and clothing in 2019 was US$280.7 billion, a year-on-year decrease of 1.5%.
In this epidemic, clothing consumption has borne the brunt of the decline. According to research from relevant institutions, the epidemic has spread globally and the textile and clothing industry has suffered losses of more than 10 billion! Next, textile export companies will face a decrease in orders or even a loss.
“It will be difficult to do foreign trade this year” has become the consensus of many textile bosses. Especially for those who want to enter Japan, South Korea, the United States, and European countries, the first half of the year will be difficult. If the epidemic is effectively controlled, demand may recover in the second half of the year.
The anxiety index in the textile industry has increased unprecedentedly!
There are hundreds of textile and clothing companies, but in the face of the epidemic, everyone has the same anxiety.
A manufacturer of conventional products lamented: “After experiencing the difficulty of finding cloth in 2018 and overcapacity in 2019, I just want to survive in 2020!”
“ Last year, we damaged several batches of fabrics and suffered heavy losses due to customer claims. At the end of the year, we didn’t make much money at all. It was like working for the workers. Our life was very difficult before the epidemic, but now we have real cash on hand. There is not much left.” – From a boss who is trying to transform For spring clothingTo be sold after the year. But now even if the market resumes, the customer flow can be imagined. This season’s spring clothes can only become inventory. The longer the inventory is stored, the less valuable it will be! The clothing business is estimated to be in decline this year. Coupled with the high monthly rent, the loss is at least millions. “The operator of Guangzhou Zhongda Garment Business District revealed.
It can be seen that textile and garment companies are facing tight cash flow caused by reduced orders, shrinking profits, labor and rent costs during the epidemic. In addition, The stock market has plummeted in the past two days, and everyone’s panic index is increasing day by day. Fortunately, the government has introduced a series of “rescue” policies to give companies some room for buffering. However, the government’s help is limited after all. If companies want to survive, they must By relying on self-rescue and completing transformation and upgrading as soon as possible, you can remain invincible in the market.
Postscript
Nowadays, every industry We are all waiting for the day when spring flowers bloom, and we are looking forward to the day when we can take off our masks. Let us regard the 2020 epidemic and the stock market crash as a test. The test will eventually pass, and only the fittest can survive!</p
