Downstream Textile Enterprises Start Downhill, Qingming Holidays Or Ingredients Water Ridge

The WHO real-time statistics show that as of April 1st, 18 hours in Central Europe (0 hours in Beijing time April 2nd), 827419 cases of newly diagnosed crown pneumonia and 40777 cases of death were diagnosed globally. Currently, there are 205 cases of new crown pneumonia in 205 countries and regions around the world, and over 740 thousand cases outside China, of which the number of confirmed cases in the United States exceeds 200 thousand. As a result, the US cotton market has been continuously explored recently, and the domestic cotton market has also maintained a low level of turbulence.

The domestic cotton textile industry relies heavily on exports. As the epidemic has shifted from domestic to foreign countries, the decline in cotton prices has also changed from the earlier stage of the anticipated panic to the basic demand. At present, the textile industry in the United States, India, Italy, Brazil and other countries are also affected by the epidemic. The impact of partial market suspension has been gradually manifested in China. Recently, the market has been circulating that more than 60% textile enterprises in Keqiao, Shaoxing, have cancelled orders, with the largest number of withdrawals in history. In addition, fast fashion ZARA closes nearly more than 4000 stores around the world, and clothing brands such as HM and UNIQLO are also closing shop upsurge. Terminal consumption is facing a sharp decline, and the textile and garment industry is gradually being transmitted from bottom to top.

Recent research shows that spinning enterprises and printing and dyeing factories have been reducing the load of enterprises, increasing work schedules and reducing human capital investment in the face of order shortage. Some enterprises are facing difficulties in recruiting workers in the early stage. After many setbacks, employees are recruited back to the post and are faced with the dilemma of another shutdown. Although some foreign trade enterprises begin to transform into the domestic market, the demand for domestic market is limited, and the pressure of competition is even greater. Near Qingming holidays, many enterprises such as Shandong, Henan, Jiangsu and other enterprises indicated that they would take the Qingming holiday to extend their holiday time appropriately to deal with the current market impact.

At present, downstream due to lack of orders, facing pressure is gradually increasing, enterprises started to decline. However, the spot price of cotton in the upper reaches is still at a historical low level, and the digestion of raw cotton is very difficult. During the Qingming vacation or the beginning of the downstream opening holiday tide, the domestic cotton market is facing a new round of shocks.