"No Order Has Been Issued This Week!" Does The "Peak Season" Become A "Peak Season"? The Cloth Bosses Think So...

There is no doubt that this week's words about "Sino US trade tariff increase" have dominated the headlines of all information platforms:

In August 24th, the US side announced that it would raise tariffs on Tariffs of about 550 billion US dollars on China's exports to the US. A spokesman for the Ministry of Commerce said that China firmly opposes this. Such unilateral, bullying trade protectionism and extreme pressure act, contrary to the consensus of heads of state of China and the United States, violating the principle of mutual respect, equality and mutual benefit, seriously undermining the multilateral trading system and the normal international trade order, and will surely take its own fruit.

　　 The textile industry in 2019 is facing too many challenges, and the impact of Sino US trade friction is undoubtedly the biggest "black swan", and the textile foreign trade enterprises have received different orders. Now, during the peak season, the original textile market is taking advantage of the recent partial improvement in the domestic market. It may be able to move smoothly to the peak season, but this rhythm seems to have been disrupted again.

In August 26th, Xiaobian made use of cloth factory platform to announce a vote on this year's "Kim Gu" market. It was thought that the result would be mixed. The result was a surprise to Xiaobian: in nearly 200 polls, the choice of "no, too few people" with a 66% vote almost overwhelmingly defeated the other side.

The biggest black swan is coming again! Customers dare not place orders, cloth boss dare not take orders!

Now the US tariff rod has flown the original "fear" Kim Gu. Although the immediate impact has not yet appeared, the Sino US trade relations friction began last year, like poison, slowly penetrated into the industry, disrupting the market's order rhythm. "Our customers in the United States are quite numerous, but this year the orders have been significantly reduced. Orders for the US side have resumed since July, but no orders have been made this week. I wonder if it is because Trump is going to toss around again and wait." Chen Chang of Shaoxing said.

A tense atmosphere permeated the textile market. In the course of the survey, an American customer accounted for 9 of the textile foreign businessmen, said: "Trump is too unreliable. He always goes back on his word, and now he raises 10% to 15%. Now there is no response from customers, afraid to order, we dare not take orders, I heard that some customers have transferred to Southeast Asia to get goods...... " In addition, another former foreign trade business started to fight partly in domestic trade this year.

It can be seen that with the increasing uncertainties in the foreign trade market and the increasing pressure from Southeast Asia, this year's foreign trade bosses feel the pressure.

In Southeast Asia, garment exports and Africa are popular in the market.

Although the United States will raise taxes on Chinese exports, the first batch of tax increases will be put into effect in September 1st, and textiles will also be there. But with its excellent quality, China's position in the textile supply chain will not be changed in the near future. The so-called "west side does not brighten the east side bright", many American buyers through Southeast Asia such as Vietnam, Bangladesh and other places, the Chinese fabric processing clothing directly exported to the United States to avoid the tariff bar, and the "one belt" policy has led to China's foreign trade enterprises and these countries trade more closely.

　　 According to statistics from the General Administration of customs, 1-7 months in 2019, China's total exports of textiles amounted to US $69 billion 384 million, an increase of 1.5% over the same period last year. The total export clothing was 82 billion 356 million US dollars, down 3.9% from the same period. This shows that although garment exports are decreasing, textile exports still show an upward trend.

　　 In the first half of this year, China's textile exports grew by 1% over the same period last year, accounting for 48.2% of the total export volume of the industry, up 4.1 percentage points from 2018, while garment exports fell 4.7% over the same period. The export market structure shows that exports to emerging markets are better than traditional markets. In the first half of this year, China's exports of textiles and clothing to the United States, the European Union and Japan decreased by 0.7%, 4.2% and 4.7% respectively, and their exports to ASEAN, Mexico and Africa increased by 0.8%, 3.9% and 5.2%, respectively.

"Recently, Africa has become popular in the market," said Ma, who always trades. "There is a big order over there, and there is no requirement for color fastness." It is understood that in recent years, Jinhua, Zhuji and other places in the yarn dyed and jacquard fabric based Africa's orders increased significantly, the market has been partial to the good.

In addition, the Bangladesh order, which is mainly located in the middle and low end of taffeta, has been doing well in the market recently. A cloth boss, who specializes in Bangladesh market, said that although the profit on the list was low, the profit was huge, and there was no special quality requirement for the list.

Although the entire textile sector is affected by factors such as the weakening of the international economic recovery and the rising risk of trade environment, the export pressure of the industry has increased significantly compared with the same period last year. However, we do not need to be so pessimistic. China is the "world factory" status or can not replace it. Chinese products are cheap, quality and professionally high, which is currently no alternative to other countries, so no matter how extreme Trump is, the order to China still exists. Therefore, bosses do not have to lose confidence in the market, practice internal strength, wait for opportunities to stay dormant, wait for market recovery and outbreak.

Borrow a cloth boss's words: the current big environment is not easy for everyone, so a move is not as good as a quiet, take a step by step to see, with the change of the environment to change themselves, neither humble nor impetuous, not urgent, impetuous!