Investigation Of Mid Autumn Holiday In Pure Cotton Mill

In September, the turnover of the "pure cotton" market in the "peak season" was not much better than that in August, and there was not enough confidence in the factories. For the upcoming Mid Autumn Festival, some textile factories arranged a holiday, and the holiday situation increased compared with last year. Below, the author enumerated some of the arrangements and the current situation of the Mid Autumn Festival holiday in the textile factory this year.

The arrangement of the holiday is 1-2 days: from the above table, we can see that because of the weakness of the market and the Mid Autumn Festival, there are more factories in the Mid Autumn Festival this year. Most of the small and medium-sized factories have not recovered well due to the poor order recovery, and the profit level and shipment are not ideal. Therefore, we should stop production and wait for the market to improve before we start. And the textile factory that does not leave is mainly considering the order and the loss of workers after the equipment is shut down.

Weaving factory shipments are not smooth: in September, the "peak season" has passed 1/3, but there has not been a substantial improvement in the shipment of the weaving mill. Most of the improved weaving factories are mostly weaving factories that produce fixed fabrics, and the amplitude is not large. Moreover, due to the large output of conventional pure cotton cloth, the average stock of the mills remains at 30-35 days, the market competition is fierce, the price is low, and the profit of the weaving mills is mostly near the profit and loss balance line, and some of them have been continuously losing money.

Pessimistic mentality: since the market has been in a weak position since May of this year, and September is the traditional peak season for textile industry, weaving factories and traders are not expecting high expectations in September, mainly due to the limited improvement in the current order level and the difficulty of inventory pressure in the off-season. At present, the overall mentality of the market is relatively pessimistic. Most believe that the market is difficult to improve in September. Some believe that the market will be dragged down in October, and the price of cotton cloth is difficult to rise.

So what is the reason why the textile mill is so pessimistic about the market outlook? Based on the survey, I think the main reasons are as follows:

(1) in September, the price of grey cloth was easy to fall and difficult to rise: in August, the strategy of maintaining the price of the fabric market was maintained. Although the textile mill had made a slight improvement at the end of the month, the inventory effect was not satisfactory, and the overall inventory pressure remained high. On the other hand, the supply of raw materials in the market was adequate in September. Without significant positive news, the price of raw materials will be narrowed, or the prices of downstream customers will be reduced. It is estimated that the price of pure cotton fabric will remain weak in September.

(2) textile mill inventory is insufficient: in September, due to the poor downstream demand and the impact of inventory pressure, the whole cotton grey fabric was widespread, but most of them still reflected that the terminal transaction was difficult to follow up after the price reduction. At present, judging from the production and marketing situation of the weaving mill, although the inventory level is still declining, the actual receipt is not ideal, and there is a shortage of large orders and long lists. The peak season is not as good as expected. Not only because of the shrinkage of terminal demand, but also to some extent, the environmental protection in the northern part of China has suppressed demand and affected the speed of shipment.

(3) the Sino US trade war has continued to influence: Sino US trade war has lasted for more than a year, and the global and Sino US economies have been affected. The textile and garment industry is no exception. Overseas customers are cautious about their risk aversion, and it is understood that some low-end textile and apparel orders are transferred to Southeast Asia. Of course, some high value-added products remain in China. Under the unstable macroeconomic environment, the fluctuation of the RMB exchange rate has increased, and the orders of the internal and external sales customers have also been gradually hesitant, or to shorten the order period or transfer part of the orders to other markets. Although some domestic enterprises have made plans to adjust export orders in succession, they need time to digest.

Summary: at present, the market is still in a state of weakness. During the Mid Autumn Festival and the National Day holiday, most of the small and medium-sized factories have holiday arrangements, and the overall holiday this year has increased over last year. In addition, the weave factory mentality is generally weak, and most of the market in October is not optimistic and lacks confidence.