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    Raw Materials Prices, Yarn Prices Stopped, Knitwear, Home Textiles Market Came Good News!

    2020/5/27 13:39:00 0

    Market Quotation

    With the easing of foreign epidemic situation, business activities have been restarted, and some export orders have been suspended. A small number of orders appeared in autumn and winter, and sales of medium and coarse cotton yarn improved. With the support of raw material prices, the price of yarn has stabilized, and a small number of varieties such as air spinning have been raised slightly. After the restart of the global economy for some time, there are good news both at home and abroad.

    01

    Rebound in raw material prices

       (source: China cotton net)

    Since April, the negative effects of the epidemic have gradually weakened, leading to a rebound in global stock market and crude oil prices, and cotton prices are showing signs of rising. According to the statistics of China's yarn network (micro signal: newyarn), in May, only cotton prices rose slightly in the raw materials. As of May 25th, the average price of the national cotton price was 11593 yuan / ton, which rose 201 yuan / ton compared with the average price in April, while the average price of viscose, polyester and short May was 8646 yuan / ton, 5728 yuan / ton, respectively, compared with the average price in April. According to the tracking data of China yarn network last week, the price of domestic cotton and polyester staple fiber has increased significantly, and viscose staple fiber has also stabilized.

       02

    Cotton yarn prices gradually stabilized

    Due to the cancellation of foreign trade orders and weak demand, in March, the price of 32 pure cotton combed yarn continued to decline, and continued to decline in April. Recently, 32 cotton combed yarn showed signs of stabilization, and the price is stable at 18700 yuan / ton. The sales volume of the weaving enterprises is not good, the raw material enthusiasm is not high, and the inquiry price is reduced. However, the current market of the knitted fabric is relatively good, and the order quantity is still good. Some enterprises say that the current market is getting back to the temperature of knitted fabric consumption, and the purchase quantity of the order is generally 10-50 tons, which can barely maintain the normal operation of the enterprise.

       03

    Textile industry takes the lead

    With the quickening pace of domestic resumption of production and resumption of production, the textile industry in April has obviously recovered further, and the growth rate of main indicators has been greatly changed from negative to large. According to the statistics of National Bureau of statistics, in April, the industrial added value of textile industry above designated size increased from 5.5% in March to 2.2%. The textile industry has achieved positive results, approaching the normal level in recent two years.

    04

    Domestic demand continues to narrow in retail sales

    Since April, domestic consumption has further improved, and retail sales have continued to narrow year-on-year. According to the National Bureau of statistics, the total retail sales of consumer goods decreased by 7.5% in nominal terms in April, a decrease of 8.3 percentage points from March. After May, holiday consumption accelerated the recovery of the market. On May 1st -5, the Ministry of Commerce focused on monitoring the average daily sales of retail businesses by 32.1%. Compared with the Qingming holidays, the average daily sales of clothing increased by 31.2% over the Qingming holiday. This means that the potential of domestic demand is constantly being released and consumption is expected to be compensated.

    05

    Textile exports improved

    The main export markets, such as the US and Europe, have been suspended and consumer demand has been sluggish. Since late March, export orders for textile enterprises in China have dropped sharply, overseas customers have cancelled orders and delayed delivery.

    European and American markets: recovery

    Beginning in May, the epidemic control measures in Europe and the United States gradually relaxed, and the shopping malls in many cities began to resume business, and the market demand began to recover slowly. A main weaving enterprise of home textile products said that the order was better recently, mainly for home textile products, and for WAL-MART in the US. There are still some stocks in the factory. There is basically no inventory recently. At the same time, another trader who made home textiles and clothing materials said that they had recently received orders for home textiles sold to the United States, though not large, but the volume was larger than the previous one, which is a signal for the slow recovery of foreign trade. According to statistics from relevant institutions, the inventory of grey cloth in Jiangsu and Zhejiang provinces has declined since the early days, and now the inventory of grey cloth is concentrated in about 41 days.

    06

    The market of knitwear is getting warmer.

    Affected by the epidemic, many foreign orders of knitting foreign trade enterprises declined after the Spring Festival this year. Recently, with the continuous improvement of the domestic epidemic prevention and control situation, in the various industrial cluster areas, with the help of many "real gold and silver" policy measures, the process of resuming and resuming production in the knitting industry has accelerated.

    Liao Ming, director of Zhejiang Tian Pai Knitting Co. Ltd., one of the leading enterprises in the world seamless underwear industry, said: "orders are now in the middle of August." Liao Ming said frankly, although mid March to mid April, there was a partial customer request to suspend shipment, but due to the previous order delivery date has been discharged to the beginning of July, so production has never stopped.

    "Now that the workshop is catching up, the order was placed in December last year. The goods that will be exported in May and June were ordered years ago. The major customers of the company have also been delivering the goods on schedule, but they have adjusted the way of shipment and converted them to sea by air. " Liao Ming introduced that from the end of April, enterprises gradually received new orders from European and American countries, and orders for partial shipments were also resumed.

    For the two quarter of production, Liao Ming is very optimistic. He expects that the European market will also restart in the near future, and enterprises will receive more new orders. Compared with the same period last year, orders from European and American countries have recovered about 80%. In the first quarter, the growth rate of enterprise capacity was flat last year, and the two quarter will gradually exert strength.

    Haining's Sam Knitting Co., Ltd., which mainly produces and exports socks and knitted underwear garments, sells well in Japan and Europe. Under the epidemic, the rapid adjustment strategy of Sam knitting has turned the development of enterprises to the domestic market, leveraging the sales platform of e-commerce and the form of live goods, and opened up a new prospect for the development of enterprises. "The first quarter, the company's performance is gratifying, achieving sales of 16 million yuan, capacity to maintain the same period last year." Shen Qiang, director of Haining Sam Knitting Co., Ltd., has confidence in the domestic market. At present, the company has begun preparations for some new products in autumn and winter. With the further expansion of the domestic market, the next two new production lines will continue to expand recruitment.

    07

    Great potential in domestic demand market

    In the early stage, international logistics and demand were basically at a standstill due to the epidemic, and foreign trade orders were almost stagnant. The global epidemic prevention and control will be normalized, and countries will restart the economy, and the consumer market will have some compensatory recovery.

    According to convention, the foreign trade orders in the second half of the year are generally issued in 5 and June, while 7 and August are the traditional textile off-season, so it is a relatively good time. The order that has been cancelled or delayed by epidemic factors will be released centrally at this time.

    With the gradual recovery of consumer market and support policy, it is estimated that the operation level of cotton textile and garment industry in the second half of 2020 will be improved significantly compared with the first half of the year. In the long run, the epidemic will enlarge the global cotton textile industry chain, and China's textile enterprises are still facing serious problems. The domestic demand market potential has become a new advantage of industrial development. In order to solve the constraints of external demand environment, enterprises need to make efforts from strategic management, innovation breakthroughs, value reengineering and other aspects, so as to enhance their international competitiveness and risk tolerance.

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