Recently, according to customs statistics, my country’s exports of textile yarns, fabrics and products from January to February 2020 were US$13.7725 billion, a year-on-year decrease of 19.9%. From January to February 2020, my country’s exports of clothing and clothing accessories were US$16.0623 billion, a year-on-year decrease of 20.0%.
This set of data shows that from January to February 2020, my country’s textile and clothing exports showed a downward trend. What is the reason for this?
Orders are delayed, and textile and clothing exports are affected in stages!
Due to the epidemic, the entire textile and clothing industry chain has been disrupted. Orders were delayed before the Spring Festival, and customers experienced order cancellations and claims. After the Spring Festival, the epidemic in China has been affected. Effective control, but overseas markets are suffering from the virus. The number of confirmed cases in Japan, South Korea, Italy, the United States, Iran and other countries is increasing day by day, and all countries have entered a state of emergency! This makes overseas customers hesitate to place orders and increases uncertainty.
“80% of our orders in the first quarter could not be delivered on time, and the amount was almost 5 million. Now customers have been urging them, and some have even canceled their orders. Now.” The person in charge of textile exports has deeply felt the severe impact of the epidemic. Coincidentally, another trader was also anxious and worried. He said: “The cutting fabric we make is more complex and the weaving speed is slow. However, only 20% of the workers in the gray fabric factory we cooperate with are on duty, because most of the core technical staff in the weaving workshop are from Hubei and other places. It is a key epidemic area, so the production capacity is very low. The day of shipment is coming soon, but the gray fabric is still stuck there, let alone dyeing later.” He estimated that even if this batch of fabrics is successfully delivered later, it will be made into ready-made clothes. , exported overseas, and the best time for spring clothing has passed.
Although the current operating rate in Jiangsu and Zhejiang has increased to about 70%, the epidemic has disrupted the entire market. Now weaving factories, dyeing factories, and finishing factories They are all suffering from lack of staff, so the delivery time is getting slower and slower!
Despite delays in export orders, many companies are still unwilling to give up these orders and customers. Therefore, they can only choose to pay more costs.
“Although we did not cancel the order, we changed the sea transportation to air transportation in order to ensure the delivery date. We need to pay more for air transportation, but in order to keep the order and customers, we can only ignore the cost.”
However, there are also many small and medium-sized enterprises that cannot afford such expensive air freight, so they can only bear the delay costs to customers. “In order to meet the delivery deadline, we originally dyed it at the dyeing factory we had been cooperating with, and the price was cheaper than locally. However, due to the epidemic, we could only dye it locally, and the cost was much higher. Now we finally completed it, but due to the delay, we had to dye it locally. Pay related expenses, our funds are very tight now.”
In addition to the impact on textile and clothing exports caused by order delays, the epidemic spread in overseas markets It is also an important reason why the export is cold.
WHO has upgraded the risk of global virus transmission to the “highest level”
As the new coronavirus spreads further around the world, confirmed cases in many countries have increased . The World Health Organization raises the global risk level to the highest level! Affected by this, global capital markets have fallen for days, and U.S. stocks have continued to fall. For textile companies, if the epidemic continues to spread, exports will definitely be affected!
“Nearly 50% of our company’s business is in European countries. If the epidemic abroad continues to spread, our business will definitely be affected. Now We are considering whether to adjust the proportion and focus on domestic production,” the trader said frankly.
In addition, due to the epidemic, China’s textile and clothing fabrics exhibitions have been postponed, which has also resulted in companies being unable to��Meeting new customers through exhibitions is also a big loss. Not only that, as the epidemic spreads, foreign exhibitions have also been postponed or even canceled.
It is understood that the current epidemic situation in South Korea, Italy, Japan, and Iran is relatively serious. Among them, Japan, Italy, and my country’s textile and clothing exports are very closely related.
But some textile bosses said they were not worried: “As long as the epidemic is under control, China’s complete industrial chain will still attract orders from overseas countries. The current reduction in orders is only temporary.”
It is difficult to return orders snatched away from Southeast Asian countries!
Last year’s foreign trade was more difficult. Many textile foreign traders believe that the culprit is the Sino-US trade war. The Sino-US trade relationship has gone back and forth, and is uncertain and long-term, resulting in textile problems. Companies have greatly reduced the number of orders they receive. Especially when tariffs were imposed in May and June last year, many companies said their orders were canceled. During this period, overseas customers transferred their orders to Southeast Asian countries, such as Vietnam and Bangladesh. , Cambodia and other places, especially Vietnam, textile exports have been on the rise last year.
China-U.S. trade relations have improved substantially this year, but the market does not seem to react much to this news , all behaved relatively calmly, perhaps frightened by the previous repetitions. A foreign trade textile boss said: “A major customer of our company had an order volume of US$1 million in 2018, but not in 2019.” To 500,000, it was directly cut in half. According to the customer, this is because the Sino-US trade has imposed additional tariffs, and many places in Southeast Asia have zero tariffs, so they chose to place the order in Southeast Asia.” And this part of the order has been placed in Southeast Asia , if you want to get it back, you have to spend some effort!
Afterword
The foreign trade situation last year was relatively difficult, which led to a decline in the number of orders received by textile companies and shrinking profits. Many textile workers They all pinned their hopes on 2020, but things went counterproductive. At the beginning of 2020, the rhythm was disrupted by an epidemic. At present, whether the trade situation can improve this year depends on whether the epidemic can be effectively controlled and whether the Sino-US trade war can be effectively controlled. Whether it will really ease, but the editor believes that the epidemic will end one day, it is just a matter of time, and China’s complete industrial chain is unmatched by other countries. Textile bosses, if you persist, you will definitely be able to usher in “spring” “! </p
