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What? The printing and dyeing factory has also stopped production!



Following the voluntary suspension of production by weaving factories,printing and dyeing factories have joined the list of restricted production suspensions! This gust of wind has…

Following the voluntary suspension of production by weaving factories,printing and dyeing factories have joined the list of restricted production suspensions! This gust of wind has blown from weaving and finishing to various industries such as printing and dyeing. Overnight, various news of production suspensions came to our faces, causing quite a stir.

Downstream textile factories suddenly stopped production, especially coating factories and printing and dyeing factories, which caught most textile people off guard. What impact will this round of large-scale production suspension and production restrictions have on the downstream woven fabric market?


Orders in the weaving, printing and dyeing markets declined

To understand the impact of factory shutdowns on the woven fabric market, we must first understand the overall status of the entire market. In February, the market was mainly focused on resumption of work. But as soon as work resumed, many manufacturers received orders, especially orders for imitation silk, which required cash to be queued up. Later, due to the spread of the domestic epidemic, the number of orders received by manufacturers and traders weakened significantly. Entering March, not affected by the traditional peak season, the market still maintains a calm atmosphere of goods sales, and the inventories of weaving manufacturers gradually increase. In March, the domestic epidemic intensified, leading to a decline in the overall economy and consumption, and the number of orders received by factories and traders fell again.

As for printing and dyeing factories, the overall situation of the printing and dyeing market is average, with an operating rate of about 70%. Some dyeing plants with higher operating load can reach 80-90%, while a few have operating rates lower than 70%. Last week, the printing and dyeing operation rate also began to decline due to the decline in the number of gray fabrics entering warehouses, showing a downward trend. It is said that dyeing factories are the bellwether of the market, which shows that the overall market has indeed declined.


The delivery date of a small number of orders from weaving factories may be extended

In such a “off season”, the actual impact of limited production suspension on downstream companies is not great. Currently, according to data monitoring from China Silk City Network, the inventory of gray fabrics in weaving companies is about 34 days. Although this data is not a historical high, it is still a high level and shows an upward trend. For weaving companies, most conventional fabrics will have a certain amount of gray fabrics in stock, so even if the production stoppage comes suddenly, it will not have much impact. But for those custom-woven orders, the impact will be greater and extended delivery time is inevitable.

Trader orders face cancellation or losses

However, printing and dyeing plants and finishing plants have a greater impact on the entire market. The fabrics produced by printing, dyeing and finishing factories are all specially made according to orders, and there is basically no inventory to replace them. Therefore, once production is stopped, the entire order will be suspended.

A textile man who is engaged in foreign trade business said: “The coating factory suddenly closed down. The order on hand that is about to be completed is still short of the last three or four cylinders. Even the dyeing factory has stopped today. , almost all the orders on hand have been stopped. Now I am being pressed by foreign customers, but I can’t persuade them to extend the delivery deadline for a few days. It’s really frustrating.”

For traders, receiving orders is a long-term follow-up task, let alone foreign trade orders. Before you successfully receive a foreign trade order, you will go through countless inquiries, price comparisons, and silence… …I finally received an order. At this time, a sudden production suspension occurred. Obviously, the previously agreed delivery date could not be fulfilled. The delivery date could not be agreed upon, and the order received may have been scrapped. Not only that, it is very likely that sea freight will become air freight. Not only will you not make any profit on the last order, but you will also lose a lot of money.

Production reduction may become manufacturer’s wish

Except for some orders with normal production and tight delivery dates, companies have also been able to face the limited production suspension. The current market situation, under the influence of the epidemic, has caused some manufacturers to spontaneously suspend production. Faced with high raw materials, sluggish market conditions, unstable logistics, and high inventories, for weaving manufacturers, cutting production is self-help. Judging from various clusters in Jiangsu and Zhejiang, the weaving operation rate has also declined last week, indicating that even if there is no limit on production suspension, more and more manufacturers will reduce the operation rate on their own.

Last week, the operating rate of Shengze water-jet loom dropped to 6%, which was the most obvious; the operating rate of Changxing water-jet loom and Xiaoshan Shaoxing circular knitting machine both dropped by 3%. However, the start-up rate of warp knitting machines in Changshu and Haining has always remained at a low level, and the impact is smaller than other production clusters. The start-up rate has not changed much compared with last week.

In the short term, the production capacity of textile enterprises will decrease, and excess inventory will be further released. In the medium and long term,The vicious cycle of low profits in the textile industry will also be broken due to the decline in production capacity. “Rest is to fight better next time!” When the epidemic subsides in the second half of the year and spring blossoms, the textile industry will also have a new beginning!
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Author: clsrich

 
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