On May 6, Trump, who is keen on tweeting, went online again. Twitter said that the tariff on goods from 10% will be increased to 25% and will be implemented on Friday!
Although fickleness is a characteristic of the Trump administration, everyone was still shocked. Why did the Sino-US relations, which had been easing, suddenly deteriorate again? It can be said to be full of twists and turns and thrilling. For textile people, the ups and downs in Sino-US relations will affect the issuance of US orders. Although the impact is not directly apparent now, there is a certain lag. But this tweet undoubtedly stabbed the hearts of the textile industry in the quagmire! Textile people have already had a miserable life in April. Will May be even more difficult?
Orders are not being placed smoothly
It is already May, the market has slowly begun to enter the off-season, and the foreign trade orders in the first half of the year have basically come to an end.
At the just-concluded Canton Fair, officials released key data for this session in the afternoon: the number of buyers and export volume both dropped! The domestic and international environment facing China’s foreign trade development this year remains severe and complex. Unstable and uncertain factors are increasing, and exports are facing greater downward pressure. The textile and apparel industry has also been affected to a certain extent.
The editor visited the market and found that the kimono shopping area and boutique shopping area in Shengze area were extremely deserted. Even the people taking samples were sparse, which can be seen from the market situation. “Our current orders can last until the end of May, and we haven’t received any new orders yet. This year’s market is much worse than last year, and profits are also declining.” said a nylon spinning trader in Shengze area. Another manufacturer of simulated silk also reported that the gray fabric has been tired for half a month, and the price of simulated silk series products has dropped by 0.3 yuan/meter. The decline is relatively large. In previous years, there should have been a small uptrend, but this year this situation is indeed unexpected.
Will dyeing fees continue to rise?
We all know that life has not been easy for dyeing factories recently, mainly because of the skyrocketing price of dyes, which has led to rising costs. Among the more commonly used dyes, disperse black ETC 300% has increased from 38 yuan/kg to 70 yuan/kg, S-GL Cuilan has increased from 160 yuan/kg to 500 yuan/kg, and ZBLH blue has increased from 100 yuan/kg to 350 yuan/kg. Yuan/kg, ruby rose from 30 Yuan/kg to 60 Yuan/kg, and red rose from 30 Yuan/kg to 60 Yuan/kg.
Faced with the skyrocketing dye prices, dyeing factories are also suffering I can’t tell you, let’s increase the dyeing fee. The current market is not good, and the dyeing factory’s business is mediocre. We have lost the confidence to increase the price. Let’s not increase it. We really can’t bear the increasing dye price. Therefore, many dyeing factories use a euphemistic way to increase prices – “over-cost”. Currently, the over-cost increases for dark and bright colors such as red and black are relatively large.
So, will the dyeing fee increase again in the future? Recently, the General Office of the Jiangsu Provincial Party Committee officially issued the “Jiangsu Province Chemical Industry Safety and Environmental Protection Improvement Plan”, proposing to “promote rectification and improvement in accordance with laws and regulations”, “reduce the number of chemical production enterprises in areas along the river”, “reduce chemical industry in environmentally sensitive areas” “The number of manufacturing enterprises” and other stringent measures. It is believed that the supply of dyes will become increasingly severe in the future.
In addition, in recent times, middlemen, salesmen and even some production companies themselves are also “hoarding goods”. What’s more, they would rather pay liquidated damages than Delivery in accordance with contract. This behavior also makes the author have to guess that the price of dyes will most likely rise again in the future. Traders and dyeing factories need to be mentally prepared for the increase in dyeing fees in advance.
Editor’s Note
Looking at it from this point of view, the market situation in May may be worse than in April, and textile workers can only endure it. Come on, take one step at a time! </p
