Market Negative Factors Superimpose Export Orders

From the survey of Cotton Traders and cotton textile enterprises in recent days, the proportion of stopping production and holiday in the Dragon Boat Festival is not high. Most of the small and medium-sized weaving factories in Jiangsu, Zhejiang, Guangdong, Shandong and so on are mostly on holiday for 1-3 days, so as to cope with the pressure and risks of the domestic sales order off-season and the increasing inventory of products.

Jiangsu Xuzhou a 5-6 million cotton textile enterprises feedback, since mid June cotton yarn, grey cloth has been "to inventory" mainly, OE yarn, C21S-C40S conventional combed yarn bargaining space from the previous 50-100 yuan / ton to 100-200 yuan / ton, and "big favorably". The company's official said that the largest inventory is grey cloth, not only a large number of operating funds, but also fabrics, clothing, foreign trade companies credit payment phenomenon is very prominent, "no credit no customers, credit hard to get back", at present, the company's domestic yarn accounted for 30-40%, export yarn accounted for more than 60%.

Cotton textile enterprises are not optimistic about whether export orders can continue to turn into domestic market in 7-9 months, because from the feedback of costumes, clothing and foreign trade companies, the textile and clothing orders of Europe, America, Japan and Korea have not improved significantly. Among them, some textile and garment enterprises in Jiangsu and Zhejiang have only recovered 30-50%, and the growth is very difficult.

There are several negative factors in the second half of 2020: first, the United States has become the epicenter of the epidemic; 31 states have announced the outbreak of the epidemic; at least 11 states have suspended or postponed the restart plan; two, under the epidemic, textile and apparel orders in Europe and the United States have been transferred to Vietnam, Bangladesh, Indonesia and South America, and the trend of "made in China" has been more obvious; three, India and Pakistan. The raw materials of cotton and polyester staple fiber in China are much lower than those in China, and the competitiveness of gauze and clothing is strong. Four, compared with the RMB exchange rate range, India rupee, Bangladesh Taka and Vietnam shield continue to depreciate against the US dollar, and textile and clothing export advantages appear.