The Textile Industry Is Beset By Foreign Epidemics.

This year's textile industry is indeed very difficult. After the outbreak of the new crown virus outbreak in the country and the response of the provinces to the public health time response, all sectors of the industry were forced to press the "pause button", and the textile industry, which relies on traditional offline channels, single market and order business, was deeply hit.

With the gradual control of the epidemic in mid and late 2, the textile market slowly returned to work. However, before taking a breath, the outbreak of the new crown virus began to erupt in foreign countries in March, causing a sharp fall in the financial market. Raw materials dropped and orders dropped sharply. The turnover of the market was once again turning sharply. It should be the most difficult time for 3 and April of the peak season.

Because of the rapid spread of overseas epidemic, many countries including Italy, France and other countries have declared a state of emergency, and have issued a series of measures such as sealing up the country and sealing the city. Similar to the previous domestic situation, most enterprises also choose to enter home office or semi shutdown.

Under such a severe situation, the quantity of foreign trade orders in domestic textile industry is bound to be affected. Although the export will be resumed in the early stage, it will also face two problems: the export of goods will undergo more links, the efficiency of customs clearance and transhipment will be greatly reduced, and the time limit for transportation will be extended. Secondly, downstream traders may not take delivery or abandon goods. On the whole, exports have caused immeasurable losses.

It is reported that some enterprises feedback the recent sharp reduction in foreign trade orders, and domestic trade orders also appear to be a single order. From the survey of some large textile enterprises, there are 5000 tons of large customer turnover, mainly due to foreign fabric customers return.

At the same time, the domestic market demand is still in the doldrums. According to the relevant data, the inventory of weaving factories is generally around 38 days. Although the domestic epidemic situation has been well controlled, all enterprises have begun to resume work, but the downstream market has not changed much, and the later inventory cycle is relatively long.

According to the China clothing association's investigation of garment enterprises' resumption and resumption of production, as of March 6th, 29.4% of the survey enterprises reflected that the orders were reduced due to the low market demand and the cancellation of orders, and some enterprises reflected a sharp decline in domestic orders.

Under the condition of high inventory and low demand, the textile bosses are generally facing two heavy pressures of inventory and capital. The grey cloth accumulated in the warehouse has already occupied a lot of money. Artificial wages, water and electricity, rents and so on all need to be maintained by cash. Under such circumstances, if the gray cloth is not realized, small and medium-sized enterprises will be hard to support, and only enough cash can ensure the benign operation of the enterprise.