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    "Dividends" Appear! 2020 Let'S Fly The Price Of Textile And Clothing Market For A While.

    2020/2/17 12:51:00 0

    2020Textile And Garment Market

    Looking back at the market situation in 2019, most of the spinning factory owners are talking about the word "market cold winter". More and more textile people complain that business is becoming more and more difficult, operating costs are rising, sales promotion is becoming more and more difficult, and competition content is constantly refining.

    Give money to sell! Orders to reduce the price of low dumping into small and medium-sized textile enterprises helpless

    For small and medium-sized spinning enterprises, the reduction of orders is a common problem. "In the past year, we have received orders from cotton mills. But by the end of the year, inventories are still accumulating. The head of a spinning factory in Hebei regrets that many manufacturers are in the inventory stage at the moment, and even say that the cotton yarn is sold for money.

    It is understood that in 2019, some small factories with a smaller volume and weak market contention were suspended for production. With the rise of the cotton textile market, some small factories resumed production and processed some small and micro order products. For enterprises in normal production and sales, there is no plan to increase production at the close of the year. One is that the market is changing again. The two is that orders are not abundant. The three is the end of the year, which has already passed the peak season of production and marketing of cloth clothing market, and the demand for raw materials has been balanced or slightly reduced.

    Specifically, the production and operation status and plan of textile enterprises all over the country are also different. The driving rate of enterprises is based on the production status, such as the private textile enterprises in Nantong, Jiangsu, whose driving rate is about 5%~10% higher than that of Yancheng. The reason is that the textile industry in Shanghai and Hangzhou area, which is close to Nantong, is relatively developed. Nantong has always been the main raw material supply side for such areas as cotton spinning, clothing, bedding, and so on. The field condition is better than that of Northern Jiangsu Province.

    For some textile enterprises, the time before the new year is much more busier than usual. If you look closely, you will find that quite a part of the orders received in the textile market at the end of the year are foreign trade orders, because during the Chinese New Year holidays, they are actually working hours, and they are also the new year's day after Christmas. It is not surprising that foreign customers' holiday ends and the long overdue demand for fabrics is concentrated during this time. A jacquard and embroidery weaving enterprise in Shengze mainly exported to Arabia. It has just received an order not long ago. Now it is a busy time. Now, they are rushing to catch up with the order a year ago. It can be said that checking accounts, collecting money, maintaining customers and appeasing workers are the main tasks of most textile enterprises at present.

    In addition, many enterprises in the market focus on the order organization in order to achieve a smooth transition before and after the festival. Yancheng Dafeng textile enterprises visit customers, negotiate business and sign orders. It is understood that the local textile enterprises order production has been arranged until the Spring Festival, the focus of work is the first quarter of 2020 after the Spring Festival production orders. The local production and marketing situation of the textile enterprises in the hands of orders have been arranged to April 2020, but the bulk of the order is smaller.

    The game between raw material purchase and capital withdrawal is the choice of textile enterprises. Let the price fly for a while!

    In terms of raw material procurement, the reserve of textile enterprises is still limited. At the end of the year, in the face of sudden changes in the prices of raw materials, they can also analyze calmly, rather than rush to make judgments.

    Spinning enterprises have different plans for how many raw materials they prepare, but there are not many enterprises intending to increase their inventories. Zhu Hong, head of the main weaving plant of Chun Ya spinning and polyester taffe, said that after repeated fluctuations in raw materials this year, the price of raw materials will not be released for the first time. If it is not continuously rising, it will not change plans and buy more raw materials. Wu, the head of another Nantong weaving enterprise, also said that the price of raw materials is not stable recently, and it is unclear whether prices will really rise, so they will also choose to wait and see. Today's textile people often choose to "let the bullets fly for a while" in the face of rising prices of raw materials.


    At present, enterprises that choose to enter fast selling rapidly are still in the majority. The survey shows that it is quite common to reserve raw materials for 30 days ~45 days. Because the production transfer after the Spring Festival, there are not many special arrangements for enterprises to increase inventories. As long as there are orders and funds on hand, it is not a problem to organize raw materials on board production in real time.

    At the same time, for most textile enterprises, this year's market is not as good as expected. The upstream and downstream capital chains of textile industry are very tense, so the accounts period is much longer than in previous years. Shengze, an annual output value of 20 million yuan, the main producers of printing products traders Hu general complained that this year's account has been extended from one month to three months in the past year, now is almost new year, but there are still 1 million of the accounts did not receive back, do not know how much money before the new year can come back.

    Friction between China and the United States is a good omen for the 2020 textile market.

    In market research, textile people generally believe that in addition to excess capacity, Sino US trade friction is the main reason for this year's poor market, and recently there is good news about Sino US trade.

    One 13 June The US Treasury has removed China from the list of currency manipulator countries.

    January 15th Washington, the White House. Liu He, member of the Political Bureau of the CPC Central Committee, vice premier of the State Council and Chinese leader of the Sino US comprehensive economic dialogue, signed the first stage economic and trade agreement between China and the United States with President Trump. At this point, the Sino US economic and trade frictions have achieved a phased "stop war" and have taken a step towards the final solution.

    Recently, China signed the first stage economic and trade agreement with the US side. According to the information previously disclosed, when the agreement is reached, there will be a certain percentage of exemption from tariffs imposed by the United States before trade friction. In 2019, although Sino US trade frictions had also experienced several mitigating situations, the United States eventually reversed itself, without substantial progress. And the agreement reached is different. The exemption of tariff increases can be said to be real.

    In addition, the inventory of grey fabric manufacturers is larger this year, and another main factor is that there are more stock in downstream garment industry. Due to the anticipation of the cold winter in the previous year, most clothing enterprises have hoarding a lot of winter clothes, and coupled with the warm winter this year has led to the further down sale of down garments and cotton clothes, and the clothing industry is afraid to store up goods to the upstream, causing the imbalance between supply and demand of grey fabrics.

    In 2020, new spring and summer costumes are being prepared. Unlike the down jacket, spring and summer fashions demand higher style, so they need to re play and purchase. Therefore, the rigid demand for fabrics still exists. "At present, our orders have been received in April, all of which are simulated silk fabrics. Recently, there are not many stocks in the factory. They are busy making fixed fabrics. Next year they will start to imitate silk or raise their points." A textile owner with hundreds of looms in Shengze said.

    The renminbi is soaring, textile foreign trade people want to weep no tears!

    Although most of the mills and dyeing factories have been on holiday, traders are still fighting. For foreign trade bosses, the trend of future exchange rate is a key factor affecting their orders and profits.

    Some experts believe that many factors such as the warming of the trade situation, the improvement of the economic expectation, the recovery of market risk preference and the weakening of the US dollar all support the strong operation of the RMB. So what will be the impact of RMB appreciation on cloth boss?

    Generally speaking, foreign trade enterprises mostly use the US dollar to settle their foreign exchange. When the exchange rate of RMB decreases against the US dollar, it represents a decrease in profits brought about by the original good price. For example, if a textile trade owner and a client offer a successful bid, they will pay 50% dollars for the next one hundred thousand dollar list and pay the remaining 50 thousand dollars when the transaction is completed. At this point, if the RMB appreciation against the US dollar is 6.85 from the original 6.95, then the boss's 50 thousand dollar will shrink, and it will lose 5000 yuan at once.

    Therefore, for cloth boss, it is an important factor to earn a good time to collect foreign exchange. Xiaobian once heard a cloth boss advance the order before, the price has already been discussed, the contract has also been confirmed by mail, but because the exchange rate fluctuation is too big, the order is almost no profit, and it can not change the contract price. This part of the price difference can only be eaten by oneself. If the RMB exchange rate fluctuates frequently, it will also cause the enterprises to quote difficult. Therefore, for the cloth boss, the exchange rate rise or fall is not a good thing, only the exchange rate stability is the situation they want to see.

    Apart from the uncertainty of Sino US trade relations and the risk of foreign exchange settlement brought by RMB appreciation, China's competitive advantage in product competitiveness is not obvious enough. With the continuous upgrading of raw materials, rents and water and electricity costs, domestic enterprises have lost the advantage of being a machining center. At present, the global textile and garment manufacturing is accelerating from China to Southeast Asia and other places where labor costs are lower. The textile and garment industry, which has always been mainly exported to foreign trade, has been greatly affected. Especially the low and medium end products, the profit is not high, and it has always won by running volume. However, since 2019, the volume of single volume has declined significantly, so that even the most basic profits can not be guaranteed. In the future, textile exports will occupy a place in the world. I am afraid they will have to go to high-end and high profit fabrics.

    For the new year's market, in spite of the big market situation in 2019, textile enterprises, though not too optimistic, are also full of hope.

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