As soon as New Year’s Day passed, the market trend changed. The originally deserted market seems to be lively again recently. But behind the excitement, is the market really as smooth as textile people expect?
The market is warming up
Recently, some weaving companies and foreign trade companies in some areas, such as Jiangsu, Zhejiang, Guangdong and other places, have reported that since late December last year, spring and summer orders have begun to pick up. In particular, orders from some enterprises above a certain size have increased significantly compared with the previous period. Whether it is The number of inquiries and orders has increased.
The foreign trade companies visited by the editor also said that although foreign trade is still in a difficult situation, they have received orders in the early stage that will last until March and April this year. It is understood that a printing and dyeing factory in Zhejiang has been fully booked for the first quarter, including orders from Thailand with a production period of one month.
Another company that specializes in simulated silk also said that simulated silk has become popular in the early stage. In previous years, simulated silk was also popular during this period, and some specifications of product raw materials even had to be queued up to buy. As the price of raw materials continues to rise, market orders are also beginning to become popular.
Difficulties are just around the corner
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Although orders from some factories and traders have picked up, there are still many problems ahead.
First, the delivery time for orders approaching the Spring Festival is relatively tight. Generally, the order delivery period is about 20 days. If employees from other places in the factory need to buy tickets in advance to return to their hometowns for the New Year, they will encounter manpower shortages and it will be difficult to make orders on time. Delivery; second, payment collection this year has become more difficult due to various fluctuations in the textile market last year, and now orders for delivery near the holidays may take longer to be sold on credit, which has aggravated the company’s concerns about payment collection; third, Most dyeing factories in Jiangsu and Zhejiang are out of stock or taking early holidays. Even if they work overtime to complete orders, there are still many orders that dyeing factories have no time to take.
It is understood that some textile companies in other provinces have been affected by the epidemic, with slow supply of raw materials and insufficient new orders. They have prepared for a factory-wide holiday, nearly half a month earlier than in previous years. A garment processing company in Hebei even went on holiday one month in advance. According to the company, due to the early impact of the epidemic in Shaoxing, raw materials could not be supplied, so it had to stop work and go on holiday in advance. After all, there are many garment processing factories, and this company cannot do anything else. The factory can pick it up, and the customer won’t keep waiting. There’s nothing we can do about it.
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In fact, the early holiday for printing and dyeing factories is not only due to factors such as power supply and the epidemic, but also mainly because the pressure on the cost side becomes heavier in winter.
According to media reports, many provinces announced that they will increase time-of-use electricity prices by up to 70% starting from January 1, 2022. Jiangsu Province has fine-tuned the peak and valley periods of industrial electricity consumption and added a winter peak electricity price based on the peak electricity price, which will increase by 20%. The industrial and commercial electricity prices in Shandong Province fluctuate between 50% and 170% of the base price, with an increase of 70% during peak hours and a decrease of 50% during off-peak hours. In Jiangxi Province, the electricity prices are increased by 50% during peak hours, and the electricity prices during peak hours are further increased based on the electricity prices during peak hours. 20%.
Most of the provinces affected by the electricity price increase are major towns in the chemical industry, which will increase the operating costs of enterprises and even affect the upstream and downstream of the industrial chain.
Moreover, coal prices have been high since February and September. After New Year’s Day, thermal coal prices rose 6.38% during the day, and coal was temporarily in short supply. Recently, news circulated online from a company in Wenzhou City, Zhejiang Province, saying that due to the impact of dual energy consumption controls in January 2022, the industrial park where the company is located plans to have a power outage from January 17th to January 31st. This is really not good news for the textile market, which is now recovering.
The market has indeed improved due to the fluctuations in the upstream, but the current market situation is not an advantage, and there have been too many ups and downs in the early stage. For textile people, not every link is very powerful now, and it is very disappointing for the market. confused.
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