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    Guangdong Textile And Garment Market: US Orders Decreasing, Market Anticipation Pessimism

    2019/9/12 11:20:00 4

    GuangdongTextile And Apparel MarketResearch And Survey

    In September 6, 2019, China's cotton network correspondent visited the major textile and garment markets in Guangzhou to explore the current industrial status. From the survey, the downstream market has improved, but there is still a clear gap compared with the peak season. As follows:

    First, the wholesale clothing market in Zhongshan, Guangzhou, has been popular before, but now it is very crowded. The reason for this phenomenon is not only the decline in demand caused by the economic downturn, but also the transformation of business models, as well as the government's regulation and control of the Zhongshan market.

    Second, during the peak season, the printing and dyeing plant is full of grey cloth stacked with warehouses and has a long list. But most of the enterprises surveyed by the survey reflect less than 60% of the start-up rate of Guangdong dyeing and printing plant.

    Third, for the intermediate products such as colored yarn, colored cloth, shirt cloth and so on, during the peak season, there will be successive explosions according to the clothing styles and fabric needs. This year, traders and processing factories both said that there were only one or two explosions at the stage, and some traders even said they did not see any explosion.

    Fourth, the surveyed companies believe that the finished product inventory of their respective industrial chains is very large, whether the import yarn of the port, or the stock of colored yarn, grey cloth and clothing are at a historical high level.

    On the whole, the downstream market is pessimistic about the overall market, and the survey researchers all say that the industry status is the worst year ever seen. At the same time, most believe that there will be no improvement in the trend. The reason is that the global economy is down and demand continues to decrease. In particular, the US manufacturing PMI set a new low, the long and short debt yield upside down, and the sharp rise in gold all showed strong investor risk aversion. Coupled with the voice of the Fed's interest rate cuts, it shows its pessimistic expectations of the US economy. At the same time, the downward pressure of China's economy is bigger, and the starting rate of grey cloth and cotton yarn is less than 50% in the traditional peak season.

    In addition, the impact of Sino US trade friction on the reduction of us orders. In August 23, 2019, the United States decided to raise the tariff raised to 10% in September 1st to 15%, which contains textile and clothing products. Research shows that some orders from the United States have been transferred to Southeast Asia in the early stage. The existing US orders are also required to reduce the price of products, and the loss of us orders is obvious.

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