I recently saw a piece of news: a stall in Shahe that used to make a fortune and sell 2,000 pieces of clothing a day is now selling only 10 or 20 pieces a day as the sun sets. The business in the market is deserted and unsustainable. The bosses don’t know Where is the road.
For the downstream clothing market in the textile industry chain, it can be said that the fluctuations were not small last year. Some clothing Factories are crowded with workers working overtime, and some have been forced to close. The market can be said to be a world of ice and fire. According to the practice in previous years, the production and purchase of goods in the clothing industry will generally heat up after the beginning of spring. The peak of summer clothing will appear before Labor Day, which is the most profitable time in the first half of the year. Therefore, the quality of the clothing industry will have a great influence on the fabrics. This link has a direct impact, which can be said to be both prosperous and destructive.
Now that the textile market has entered March, how is the market recovery going?
The operating rate has increased significantly, indicating an improvement in the market
At the end of February, the operating rate of major weaving clusters in Jiangsu and Zhejiang has increased significantly. As of last weekend, the operating rate of Shengze water-jet looms has recovered to more than 80%, the warp knitting market has recovered to 70-90%, and the round rate has recovered to 70-90%. The machine startup rate has returned to 60% to 70%, and the comprehensive machine startup rate of the entire market has almost reached 80%. Compared with the same period in previous years, the machine startup rate is about 7 percentage points higher. Although in February, many weaving manufacturers reported difficulties in recruiting workers, with the increase in wages and benefits, workers have basically been put in place and normal production has resumed. In addition, before the closure last year, many manufacturers were faced with the problem of recruiting workers. Orders have been placed, which has resulted in manufacturers being more motivated to produce after the start of the new year. In addition to completing normal shipments of orders before the Spring Festival, rushing to produce, stocking up, and reselling before the peak season is also one of their strategies, which has led to the start of production this year. Rates rebounded better than expected.
Preliminary verification of demand, the market is doing well and cherishing it
Judging from various signs, the start of demand this year has been gradually verified. Judging from the current shipments and inventory conditions of major manufacturers, most textile companies currently have many orders on hand to execute, whether it is domestic sales or foreign trade, and the market is still placing orders one after another.
A trader in Changxing said that he has received orders for more than 5 million meters after the New Year, which is not weaker than the same period last year. According to the current order volume, even if he does not accept orders, It can be guaranteed after March, not to mention that the market is recovering and there will be orders in the future, so the pressure in the first half of the year will not be great. Mr. Wang, another simulated silk manufacturer in Shengze, also said that the demand for simulated silk products is currently heating up. Manufacturers are busy receiving and shipping orders every day, and orders can be maintained until at least early April.
In addition, it is reported that dyeing factories in Hebei, Zhejiang, Guangzhou and other places are already queuing up gray fabrics to enter the factories, which is sending a positive signal to the market.
If you are drunk today, why worry about tomorrow? Time comes?
What is today? With the coming of various good news from the market, the previously predicted prosperity in 2019 will be at an inflection point or will be delayed: On the one hand, the United States has delayed the implementation of tax increases! The Office of the U.S. Trade Representative announced that the tariff rate for imported goods from China that will be subject to additional tariffs starting from September 2018 will not be increased and will remain at 10% until further notice. It can be seen that Sino-US relations are developing in a good direction, which will bring benefits to the foreign trade market; on the other hand, “One Belt and One Road, Deepening Reform, Internet +” and other key words related to the textile and garment industry during the Two Sessions will also drive the entire industry to actively transform and upgrade . When good news comes from both domestic and foreign markets, the author believes that the general environment is actually showing signs of recovery. Therefore, the author is relatively optimistic about the demand in March and the fabric market. After all, driven by the peak season of seasonal demand, light and thin fabrics sales will increase to a certain extent.
But how much better will the market get next? Now It’s all a mystery. We got to see “Tomorrow’s Sorrows”! As the author analyzed at the beginning of the year, this year’s fabric market is still deeply involved in “domestic and foreign troubles.” The internal worry is that foreign production capacity is gradually increasing, and the production capacity in many central and western regions has exploded. If the production capacity goes smoothly, it will have a great impact on the market, and may revive low-price competition and vicious competition that have been hard to contain; foreign troubles are the advantages of Southeast Asia. As their industrial chain continues to expand, labor costs are only half of domestic costs, and zero-tariff policies will attract many orders to Southeast Asia. We will see more and more “made in Vietnam” and “made in Myanmar” “etc.
In general, the “Golden Three” that textile people are looking forward to is actually on the way. The improvement of the market will take time to verify, so we should do it and cherish it!
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