Global Trade Market Earthquake, Textile Enterprises: Order Reduction, Price Decline, Stock Increase. Can You Support It?

US President Trump said on 1 afternoon through social media that the United States will levy a 10% tariff on 300 billion US dollars imported from China from September 1st this year.

Once again, the external negative factors have made the textile market in a difficult market even more remote.

　　 The United States once again imposed an additional tariff of 10% on 3000 of China's goods, and the risk of trade increased sharply. Orders for textile enterprises were at stake.

Since last year's war between China and the United States, the textile market and even the entire Chinese manufacturing industry have been affected by this, and orders have dropped sharply.

Since May, the volume of fabric has been reduced, and the start-up rate of weaving factories has declined.

Since then, the textile market orders have been decreasing since May, and now they are in the traditional off-season stage, and the market is relatively low. Affected by the off-season, coupled with the hot summer heat, the production of grey cloth manufacturers is not good. Some manufacturers have reduced the operating rate, and a small number of weaving manufacturers have issued high temperature holiday notice, which lasted for about 10 days. According to the monitoring data of Chinese silk net samples, the loom rate in Jiangsu and Zhejiang provinces has dropped to about 7. Among them, the opening rate of water looms in Shengze and Changxin is 7-8, and that in Changshu and Haining is 6-7. The opening rate of the Shaw machine is about 5. Compared with the first half of the month, the start-up rate dropped by nearly 1.

　　 Orders for weaving factories are insufficient and raw material demand is reduced.

In July 30th, the price of PTA stabilized and rebounded, and the production and sale of polyester filament exploded. However, the production and marketing level lasted for only 3 days. In August 1st, the production and sales of polyester filament dropped to 40%-50% and returned to the plain. The main reason is that the downstream weaving factories do not have the support of orders, and the demand for raw materials is not large.

The owner of a Loom factory with 100 looms said that the PTA rose and did not purchase raw materials because of the shortage of orders in the recent stage, lack of funds, and more prudent purchasing of raw materials. Coincidentally, another owner of about 1000 large scale weaving factories also said that no raw materials were purchased at the end of July. There was no need to store raw materials with the purchase and use. First, the price of raw materials was unstable and the floats were large. Two, because of the shortage of orders, the demand for raw materials was not large.

Foreign trade orders are missing, foreign companies are on holiday.

This year, the foreign trade market situation is not satisfactory, foreign textile enterprises reflect the reduction of orders this year compared with last year 20%-50%. In accordance with past practice, the foreign trade market mainly develops orders in the second half of 7 and August, and orders will be placed in 9-10 months to start the next spring order.

　　 However, the recent development of textile enterprises is not much, and has declined compared with previous years. A salesman of a foreign trade enterprise in Shengze said that although this year was also a low season last year, there were still some small bills and lots of proofing development. They were still busy. At present, there are no orders, and there are not many proofing samples. The employees of the company are relatively idle and are considering holidays.

The exchange rate of the US dollar fluctuates frequently.

In addition, as the Sino US trade worries intensified, the US stock market and crude oil plummeted, and the exchange rate of RMB against the US dollar was also affected, and the fluctuation was more frequent. As of Friday, the RMB exchange rate on the shore has reached 6.9 yuan, or 6.7 yuan in early May, or 2.99%. The fluctuation of exchange rate has a certain effect on the order of foreign trade enterprises. Most enterprises quote according to the real time exchange rate of the day, and the exchange rate is also based on the real exchange rate. For a large number of orders, the exchange rate difference is likely to be the profit of the entire order, so the exchange rate has a greater impact on foreign trade enterprises.

　　 The Sino US meeting ended in late June, easing the bilateral relations and easing the textile market. But with the warming of Sino US trade friction, the market will be in a predicament again.

And then, August is a seasonal transition period. In the traditional sense, it is a transitional period from the off-season to the peak season. In late August, it is also the wind vane of the second half of the market. According to the orders of late August, orders will be issued one after another. The new round of US tariffs on China and Canada will directly affect the order of textile enterprises this month, so it will also directly affect the market of the whole Kim Gu season.

Especially since this year, the overcapacity of the Western looms has increased, and the black swan is coming again. Global trade market earthquake, the reduction of orders, price decline and inventory increase haunt textile enterprises. Next, for textile enterprises, it will be a painful torment.