Orders Decline, Textile Companies Intend To Lower The Boot Rate To Meet The Traditional Off-Season Test!

Since June, foreign trade orders have resumed slowly, and the price pressure is serious. The retaliatory rebound of textile enterprises is not expected to arrive as scheduled. In the 7 and August, the traditional textile off-season will be ushered. Most textile enterprises are mainly "maintaining stability and cash security", and some enterprises are going to cut down the starting rate again to meet the test.

Orders are scarce, and dyeing mill is not fully open.

Since late May, the order volume of weaving enterprises has declined considerably compared with the beginning of May. According to data test of China silk net, as of May 29th, the opening rate of water jet looms in Jiangsu and Zhejiang provinces was 75%, down nearly 15% compared with the same period in previous years.

Xiaobian made a survey last week about the start up rate of weaving enterprises and subsequent measures to reduce production. Nearly 200 weaving enterprises participated.

Research shows that 31% of the weaving enterprises are full of looms in the recent stage, and 16% of the weaving enterprises are in the current stage of 7-9 of the starting rate, 27% of the weaving enterprises start up at 5-7 percent, while 26% of the weaving enterprises start up less than 50%.

In the surveyed enterprises, 69% of weaving enterprises had the intention of reducing the starting rate in June and July.

We can clearly see that in the case of the new crown epidemic is still raging, the actual order of weaving enterprises is scarce, and the dyeing factory has not recovered recently.

After investigation, it is found that half of the dyed factories are now open, and a little more than 7-8 have been opened.

Order recovery is slow, ensuring production and reducing losses is a top priority.

Our company is doing some silk fabrics, silk, acetic acid and other slightly high-end fabrics, and basically are foreign trade exports, mainly exported to the United States. In the past year, we can achieve more than one hundred million yuan a year, but this year because of the serious epidemic of pneumonia, the United States is the hardest hit, and our orders have fallen by more than 90%, "said one trader responsible. And their company has more staff and higher production costs, and the turnover is hard to guarantee normal production and operation. They are fully supporting at present. As for how long it can last, everyone has little confidence.

The reduction of orders is so large that enterprises will inevitably lose money. Of course, enterprises in this state are not only limited to them, but also in a small number, especially textile enterprises specializing in foreign trade or foreign trade.

According to the data of the National Bureau of statistics, in the past two years, the number of loss making enterprises in our textile industry is relatively stable every month, roughly 3000. But this year, the number of deficit spinning enterprises rapidly increased, reaching 6500 in February and March. Although the number of losses in April has decreased slightly, there is still no return to normal.

Loss seems to be an unavoidable problem for our textile industry at present. How to avoid losses or reduce losses is the top priority for all textile enterprises.

Some enterprises say that the market is thin is expected. At present, foreign trade has never been restored, and even can still be said to be stagnant, which will have a great impact on the entire textile market. Many domestic trade enterprises, clothing enterprises, their orders are mostly from abroad, so foreign trade has not been restored, the market is finally difficult to pick up.

After June, it will soon enter the traditional off-season, and the textile enterprises will be fully prepared for the off-season. At present, the downstream enterprises' orders are mainly clothing and bedding in autumn and winter, and textile and clothing exports to Europe, the United States, Japan and South Korea are still recovering slowly.

Although last week, domestic and foreign cotton prices have increased to varying degrees, zhengmian main contract in September broke through the 12000 yuan / ton integer mark, causing cotton spot prices to rise rapidly, but the consumer terminal customers such as grey cloth, clothing and so on have a very limited capacity to receive, so the gauze profit has declined compared with 4-5 months. Considering that 7 and August are the off-season of cotton textile industry, coupled with the worry that the second half of the epidemic is coming back again and the pressure of employment is greater, the willingness of textile enterprises to hold prices is not strong. "Ensuring production, maintaining stability and ensuring cash flow" is a pressing matter of the moment.

A foreign trade company in Suzhou, Jiangsu, reflects that up to now, orders from several major European customers such as Spain and Italy have returned to 40-50% at the same time last year. Not only is there a large list, but also the price of the contract is very low (the factors such as depreciation of the RMB exchange rate are taken into account by the buyer). Because of the continuous rising of raw material prices, high labor costs and worries about the frequent debugging of equipment and the influence of production capacity, the domestic textile and garment enterprises are more resistant to small batch and no profit orders. Some enterprises prefer to cut production or shut down and do not plan to receive such export orders.