Before Stopping 2 Looms, Now Open To Full Strength! Can The Textile Market That Pulls Up Raw Materials And Increase Domestic Trade Can Break Through The Yoke Of The Epidemic?
In March, the outbreak of foreign epidemic, foreign trade orders were cancelled and postpone, foreign trade activities directly "stopped".
In late April, the market came out of polyester Taffa and Chun Ya spinning, which could be used for civilian protective clothing. At a time, orders for millions of meters and tens of millions of meters in the market were issued, and some of the specifications were stolen.
In May, with the sharp rise in international crude oil, polyester filament also kept pace with the increase in prices, especially in some parts of FDY, which increased by over 1000 yuan, which stimulated traders to store goods in the market.
Crude oil breaks through the 30 mark, and the bulk of textile materials is rising all the way.
In May, international oil prices continued to rise. On the 18 day, WTI6 futures rose more than 7% in the intraday trading, at 31.62 US dollars per barrel, and 30 US dollars at the international oil price station, which has also boosted the polyester market. Last week, with the addition of the loom and weaving factories, the local production and sales volume of polyester filament decreased, and the average stock of polyester factories dropped to 29 days, which was 5 days lower than the end of April. The price also increased by 200-500 yuan / ton before the festival. In addition, other products have also risen to a certain extent.
Orders are up. The boot is better than the end of April.
In the second quarter, due to the cancellation and delay of the previous orders, the market orders were continuously missing. The manufacturer's grey storage inventory once triggered a warning line, especially for the peripheral manufacturers. Because of its high production capacity and higher inventory pressure, most manufacturers of textile products were significantly weaker in their production enthusiasm. During the May 1 period, they had at least 5 days' leave, and even some manufacturers had a vacation for 7-10 days.
With the end of the holiday, the major manufacturers resumed production. However, unlike the investigation before the holiday, many factories returned to work after the May 1 holiday, and some even operated at full capacity.
It is reported that at present, the water injection rate in Shengze and Changxin has increased to 7-8 in the vicinity, Shaw in 5, and warp knitting rate is around 7, compared with the end of April, the market operating rate has generally increased by about 1.
"Recently, our factory started better than before. Before it stopped 35 looms, now it has opened 20 units. The rest of the market is watching. If we get better later, we will all start!" A textile owner with nearly 300 looms said.
Another textile factory owner also said that after the return of the holiday, the goods and enquiries in the lower reaches were obviously better than those in the early stage. The market looked promising, and the raw materials were also in low position. He opened the machine again, and had made 8 looms before.
The market is heating up, and manufacturers say they are going to take the goods every day!
Compared to the April tea owner's idle tea drinking, empty panic, in May, many cloth boss began to busy. "Our orders have improved a lot recently. We are mainly doing four rounds of ammunition. Recently, orders for goods in the market have increased significantly. For example, 100D plain four rounds, basically every day is a truck, about 8, 90 thousand meters!" A textile owner, who owns 300 looms, said Chen.
In addition, the recent summer clothing material is better than before. Some manufacturers have indicated that they have taken hundreds of thousands of orders after the holiday. Earlier, because of the lack of orders for domestic and foreign trade, the inventory of simulated silk fabrics manufacturers rose sharply. With the gradual warming of the domestic market, the sales of simulated silk in the market were stimulated. Some of the specifications and products even brought about a wave of market because of the tight supply of goods. Among them, the products sold last year were SPH, and the manufacturers said the downstream demand was better, and the market heat was obviously good. In other products, prices have steadily increased.
The improvement of domestic market sentiment has become a reality. Most people in the industry are more concerned about the foreign trade market. At present, the foreign trade market is also "warming up".
The general manager of a textile bosses enterprise said that the foreign trade orders were being restored in the near future, and the number of customers asking questions increased significantly. He also improved on the two quarter's production than in the first quarter.
"In the near future, the European market will also be reopened, and our customers will return to work, so more new orders will be received. At present, compared with the same period last year, our orders have shrunk by 5, but in the dark, it will always be over and orders will return.
Of course, there is a key factor that can not be ignored in the optimistic picture, Sino US trade war.
On 4 and 8 May, the US Trade Representative Office (USTR) announced a list of twenty-seventh and twenty-eighth lots of products that were subject to tariffs of 200 billion and 300 billion US dollars respectively. On the 12 day, USTR also announced the fourth batch (for 34 billion dollars tariff) to exclude the notice of extending the validity period of the commodity in the list, and added some tariffs to some commodities on the 14 th.
The batch list has been formally implemented since July 6, 2018, with an additional tax rate of 25% and fourth elimination in May 14, 2019. The expiry date was originally due in May 14, 2020. The announcement decided to exclude the validity of some commodities since December 31, 2020, and the 27 commodities resumed tariffs.
In May 14th, Trump was asked how to deal with China when he was interviewed by Fawkes TV. He could blurt out "sever the whole relationship".
The outbreak of the new crown pneumonia has made Sino US trade relations tense again and again. Although it has no impact on the textile and garment industry from the list, it also proves that Sino US trade frictions have not ended. In the second half of the year, with the general election in the United States, the uncertainty is even greater. This will definitely be a big bomb for the foreign trade market, which is anxious to revive.
But fortunately, the domestic textile foreign trade boss who has gone through more than a year of trade war baptism has done the corresponding measures, on the one hand, reducing the proportion of American customers, and developing new markets on the other hand. For the next textile market, most of the textile people are still in progress. "Although the traditional off-season is coming in June, there is always something to hope for in May." A textile boss said.
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