Buy Fabric Fabric News Weaving, printing and dyeing are ushering in the May Day holiday, and the operating rate has dropped again. Is the off-season in May even weaker?

Weaving, printing and dyeing are ushering in the May Day holiday, and the operating rate has dropped again. Is the off-season in May even weaker?



Since the spread of the domestic epidemic in February this year, the textile industry has been affected by it. The overall performance of the textile market has continued to weaken…

Since the spread of the domestic epidemic in February this year, the textile industry has been affected by it. The overall performance of the textile market has continued to weaken, and the weaving and printing and dyeing markets have been in a relatively passive situation for more time. In particular, weaving factories are severely under-operated, and some factories have even postponed the Tomb-Sweeping Day holiday to the May Day holiday.

Printing and dyeing factories usher in a longer “May Day” holiday

In terms of printing and dyeing, many manufacturers have also received notices of the May Day holiday. Although no formal written notice has been issued, verbal notices have been conveyed. Most manufacturers have a holiday of 2-3 days. This year’s printing and dyeing holiday overall feels a bit long. In previous years, most manufacturers only had one day or even no holiday. Even during a long holiday like the National Day, dyeing factories generally only have about two days off. It is rare to have a general holiday of 2-3 days like this year.

Obviously, textile factories will be able to enjoy a longer holiday this year than in previous years, mainly because the order volume is not large! In late February, the domestic epidemic situation was severe, which led to poor trading atmosphere on the trade side. Downstream orders were cautious. The printing and dyeing market was affected by this, and the amount of gray fabrics entering the warehouse decreased compared with the previous period. Printing and dyeing enterprises have been affected by the dual impact of environmental protection and the epidemic, and their operating rates have been slightly lowered to around 68%. Then, the epidemic situation in the Yangtze River Delta region became more serious, and logistics problems were difficult to alleviate in the short term. Clothing cluster markets and shopping malls in various places were affected by the epidemic, and stores were closed. This made it more difficult for downstream companies to receive orders, which led to the restart of printing and dyeing companies. The rate dropped again to about 66%.

The quantity of printing and dyeing warehouses increased slightly

In mid-to-late April, the epidemic in the Yangtze River Delta region was gradually brought under control, and logistics problems were also improved. The order-taking atmosphere of downstream companies improved slightly, and the circulation speed of the entire market accelerated. Printing and dyeing companies were also affected, and the number of gray fabrics entering warehouses increased slightly. Under this influence, the printing and dyeing operation rate has been increased, rising to 70%.

According to a salesperson from a local dyeing factory, the number of gray fabrics entering the warehouse has increased since mid-to-late April, but there are also cases where some gray fabrics only enter the warehouse without coloring. Originally, 6-7 of the 11 shaping machines were opened, but now they are open for 7-8 days, which is a slight increase.

It can be seen from the fact that the gray fabrics are not colored after entering the warehouse that some orders have not actually been placed. The reason for this may be that customers are hesitant and waiting for a long time; it may also be that the manufacturer’s inventory has increased, causing the warehouse to be stacked and transferred. Or, due to the influence of logistics, the order delivery time has been doubled. In order to complete the order as soon as possible, traders put the gray fabric into the warehouse in advance.

The textile operating rate in Jiangsu and Zhejiang is still declining

Although the printing and dyeing enterprises in Shengze area have improved their order-taking situation due to the gradual smoothing of logistics, the situation in the entire Jiangsu and Zhejiang regions has still not improved significantly, and has even declined slightly. At present, the operating rate of the entire Jiangsu and Zhejiang regions is still hovering at a low level. As of this week, according to data monitoring from Silk City, the weaving operating rate in Jiangsu and Zhejiang is only 48%. This is the seventh consecutive week that the operating rate has dropped. Judging from the current market conditions, to a large extent, the May Day holiday will cause some weaving manufacturers to take a holiday, and the market operating rate may be further reduced.

Although the weaving operating rate is at the lowest level in the same period in the past six years, the inventory of gray fabrics is constantly rising. Currently, according to the monitoring data of Silkdu.com, the inventory of gray fabrics in Shengze area is around 35.8 days, which has been rising continuously since January this year and increased by 2 days compared with the beginning of January.

The current epidemic has had a great impact on both domestic and export sales. Domestic spring and summer orders have been completed, and the high cost of foreign exports has restricted the delay of some orders, and some terminal orders have even flowed out to countries such as Southeast Asia. There is obviously a lack of sales in the spring clothing market this year, which has affected the stocking demand in the autumn clothing market. The country is currently in the development and procurement season of autumn and winter fabrics. In this environment, brand owners and garment factories will be more cautious in their purchasing plans to prevent increased inventory from occupying funds. Most weaving companies consider taking 3-5 days off during the May Day holiday, and the operating rate is expected to continue to weaken next week.


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Author: clsrich

 
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