Revival Of Foreign Trade Demand Is Not Clear. Weaving Factories And Traders Are Willing To Let Prices Go To Stock.

"Since the middle of March, foreign orders have been cancelled and suspended. Up to now, no orders have been received. Our customers are distributed in East Asia, such as Malaysia, Japan and Australia." A foreign trader who makes men's and women's clothing and home textile fabrics has no choice but to speak.

Recently, with the gradual control of the epidemic, many countries in Europe, America and Southeast Asia have begun to resume work and resume production. However, in some countries, there is still a potential risk of a rebound in the process of social isolation. Foreign trade demand recovery is not obvious. For the post market foreign trade market trend, pessimistic textile majority, part of cloth boss said: "foreign trade this year, or even next year will not be good."
Weaving factories and traders voluntarily let the price go to stock.

A foreign trader in Wujiang said that due to the cancellation and suspension of foreign trade orders in mid March, the warehouse has accumulated a lot of stock. "Now that the epidemic has improved, we want to ask our customers if we want to, and we will let the price go, but almost no one wants it. We do not have any stock in trade, and now we have 300 thousand meters of cloth in the warehouse."
Coincidentally, a trader who imitated silk said: "the order of silk imitation is OK, but now that the stock market is very high, we have to reduce 1-2 wool in order to win the order."

The lack of terminal orders leads to the fact that the whole industry chain is facing high inventory situation. From raw material end to terminal garment enterprises, a large number of stocks have been accumulated. At this point, although the crude oil continues to rise, the polyester market is also getting warmer. However, the price rise of raw materials has absolutely no effect on enterprises that do not have enough to do. "Now, raw materials are rising or falling. We don't care at all. Orders are not valid. How can we afford to raise prices? We used to work overtime every day at this time of the past year. Now we can only sit in the market and drink tea.

The damage of the epidemic is too great. A foreign trade enterprise shut down all the looms outside.

An industry and trade integrated enterprise with more than 1000 looms said: "we can't support it. Our Anhui branch's more than 300 looms have stopped completely, and half of Shengze's local machines are resting. 80% of us are foreign trade. This year, the foreign trade is cold. We are ready to turn to domestic sales, but the effect is not very good. The domestic market is not good enough. We have already had enough money and can only get the price down very low before we can receive the order. Under such circumstances, we choose to stop the Anhui branch and save money. When the workers wait until they need it, we believe that the difficulty is not great. "

Xiaobian calculated an account. Taking 300 looms as an example, the rent in the Anhui area is about 60-70 yuan / year / square. More than 300 looms probably need 6000 square meters of factory buildings. The rent is also in the area of 36-42 million / year. In terms of wages, the skilled workers are 6000-7000 yuan / month, the new employees are 4000 yuan or so, and generally require 50 people, so the monthly employment expenditure is more than 300 thousand, plus raw materials and water. Electricity and other expenses will cost at least 1 million a month.

For many cloth owners, it is better to stop production than to occupy space and occupy liquidity, which only wastes rent and machine depreciation fees. Moreover, in general, the number of units built in the field has increased by hundreds or thousands of times, no matter whether they are diverted from the past or because of their own development needs. It can be imagined that if there is no order, how much liquidity will be generated by the inventory that is woven? The higher the inventory is, the more capital it will occupy. In the future, it will be a good way to recuperate and reduce production if the future prospect is uncertain.
afterword

Although there has been a revival in the domestic market recently, traders have received orders for hundreds of thousands of meters, but the foreign trade is still "no surprise". Although some countries have been unsealed, the cancellation is not equal to the return of orders. Under the epidemic situation, the economic situation of various countries is not optimistic, the number of unemployed is rising, and retaliatory consumption is hard to emerge. Moreover, the epidemic situation in foreign countries is not fully controlled. The number of confirmed cases in some countries is still increasing. There is a possibility of "two outbreaks". As time goes on, by the end of August, there will be a wave of foreign trade orders coming out, but there is no way to compare single volume with previous years. It will take a long time for foreign trade orders to go back to their previous levels.