Lack Of Orders, Downstream, Forced To Extend Holidays

Since the resumption of the Chinese new year, most of the textile enterprises mainly focus on the implementation of pre season orders. However, with the outbreak of foreign epidemic, China's textile and clothing exports continued to decline. According to customs data, China's textile and apparel exports in March 2020 amounted to US $15 billion 430 million, down 15.13% from the same period last year, of which exports of textiles (including textiles, yarns, fabrics and articles) amounted to US $8 billion 922 million, down 6.32% compared with the same period last year. Exports of garments (including garments and accessories) were US $6 billion 508 million, down 24.83% from the same period last year. At the end of March, the main export destinations began to "seal up the country and seal the city" to curb the spread of the epidemic. As a result, exports are expected to decline or larger in April. Exports have been blocked, and the domestic market has not improved significantly.

According to the feedback from Henan, Jiangsu and other places of spinning, weaving and printing and dyeing enterprises, especially from mid April, many enterprises failed to get new orders, and the sales of yarn and grey fabric were also declining. Even though the price reduction or sales rebate had not been improved, the difficulties had not been improved. At the beginning of the month, some enterprises could still maintain production by reducing load. However, after the second half of the year, finished products were seized up, and new orders were nowhere to be found. Many enterprises began to shut down.

At present, oversupply of cotton yarn Market and insufficient orders are the biggest problems facing downstream cotton mills. As the May 1 holiday approaches, there is a continuous "holiday tide" throughout the cotton textile industry. Many enterprises are planning to reduce their pressure by way of early holidays or extended holidays. At the same time, expect the European and American countries to get better because of the recent improvement. In addition, all over the country, through online promotion and issuing vouchers to stimulate consumption, especially the Ministry of Commerce and the China Consumer Association and other departments will hold "double goods online shopping festival" from April 28th to May 10th, when there will be more than more than 100 platforms and enterprises to participate, which will bring strong stimulation to the subsequent domestic market recovery.

In the first half of the first half, it is difficult to change the situation that production enterprises and trade enterprises are hard to drop. However, at present, cotton prices have been relatively low in history, and May is the high incidence period of domestic disastrous weather. Therefore, it is worth paying close attention to the big dilemma.