After The Improvement Of Domestic Sales, Some Manufacturers Still Reduce Production By 1/3. This Wave Of Market Stamina Is Insufficient, Stock Big Mountains Remain Calm, Future Production Reduction Will Become The Norm.

Oil futures rose 8% in the evening of May 19th. The vaccine is good enough to detonate the market, and the stock market in Europe and America is rising. The recent good news from the market has led to the improvement of the grey fabric market. Orders in the domestic market increased, especially in the beginning of the market, and some of the grey fabrics were hot.

01

Looms start up rate, manufacturers confidence restored

Affected by the improvement of orders, the inventory of gray fabric market in Jiangsu and Zhejiang provinces has declined. According to the data of China silk net, the inventory of grey fabric weaving in Shengze is about 41 days, which is 3 days lower than that at the end of April. The start-up rate of weaving factories has also risen. According to the monitoring data of China silk net, at present, the rate of water injection and air-jet looms in Shengze is 75%.

　　 From these data, we can see that there is a certain degree of recovery in the market. For today's era of more confidence than gold, market recovery is not only an increase in orders, but also a revival of weaving manufacturers' confidence. The head of a local weaving enterprise in Shengze told Xiaobian: "my company is mainly producing silk like imitation. Recently, the market has improved. There are more monads, and the original boot rate is only 60%. Now the boot rate in the factory is 80%. At present, production and marketing can be done flat and order goods are the main ones.

Another large gray base production base in Fujian, the recent boot rate is also higher. It is understood that a Fujian area has 2000 looms manufacturers responsible person said: "nylon fine denier product is not very big, and almost the same as last year, so now the machine is full. And in the second half of the year, it will be the main force, and no production will be cut down.

02

Order recovery is not strong enough, and there is still a reduction in production by 1/3

There are differences in start-up rates in various regions, but overall optimism is biased. But most manufacturers said that even though the market in 2019 was not satisfactory, compared to this year, the machine was fully opened last year and there was no reduction in production. It can be seen that the improvement of orders is still not normal. Manufacturers still need to be cautious about the operation of the future market.

For example, outlying areas such as Hubei, Henan and Anhui, where production capacity is very large, is also reasonable because of the larger scale of factories there. Xiaobian understands that most of the weaving factories in Hubei have operations to reduce production. According to a boss who has a weaving mill in Hubei, "after May 1, Hubei manufacturers basically stop 1/3 machines and open 2/3. Although the market has improved, but the best selling is SPH extinction card, I mainly produce composite silk chiffon category, the impact is not very large, there are 2 months of inventory. So there is a reduction operation in Hubei.

03

High inventory, overcapacity is still a big mountain.

On the one hand, the capacity of the outlying areas has always been an important factor that can not be ignored. In this year's downturn, it is inevitable that the fate of high inventory of grey cloth can not be avoided. Although Xiaobian mentioned at the beginning that there was a slight decrease in the inventory of grey fabrics in recent years, it was still 2-3 days higher than in the same period of 2019, which was generally acknowledged to be in the doldrums. Overcapacity is still a big problem that puzzles grey cloth market.

　　 04

Rebound market momentum is insufficient, foreign trade orders slow down

On the other hand, domestic clothing demand to a certain extent began to rebound, and it is reasonable. Although many foreign countries have been lifted and resumed, the downstream foreign trade enterprises have not received foreign orders, and the recovery of the foreign trade market is very slow, which has continued to cause some obstacles to the comprehensive recovery of the textile market. This wave of market will follow or will not be enough. Overseas epidemic is still in the outbreak. Although clothes are just needed, it is not as good as food and other daily necessities. Clothing consumption will not recover too fast, so the rebound is not optimistic.

summary

Later, even if the market is down, it is reasonable, after all, it is the traditional off-season after June. Now we need to catch the tail of "red May" and then wait for the peak season in the second half of the year, which is the greatest comfort at present.