July Market Is Expected To Fade, The Market Needs To Wait For The Warmer.

Since the outbreak and continued spread of the new crown disease, global textile production and orders have been falling down, and retail sales have collapsed, which may continue to be in a long-term downturn. The sharp weakening of clothing consumption demand in the international market has directly led to the product structure of China's textile and clothing exports. Although some European countries have gradually relaxed the control policy recently, the global supply chain has shown signs of recovery, but overall, the negative impact on the industrial chain is inevitable.

In 2020, when the textile industry entered the traditional off-season in July, the pressure of the textile industry chain was doubled.

01

Domestic demand: low season prelude, enterprise pressure

From the time of consumption habits and downstream replenishment, we will enter the off-season in 7 and August, and the order is in a state of slack. Industry experts said that some of the small and medium-sized enterprises may face pressure to cut production, shut down, vacation or even shut down in the month of 6~9.

02

Foreign trade: prelude to holiday, less orders.

The EU generally has high temperature holiday in 7~9 months. France, Italy, Holland and other countries need at least a month or so. Therefore, the export orders of the market in July are relatively small, and will increase again after 8 and September. Therefore, the downstream market in July is generally not optimistic, and the market will not improve until August.

03

Production status: weak market, lack of start-up

According to the survey of weaving production in cotton textile cluster, the market of cluster weaving has been weakening since June. By the end of June, the average operating rate of cluster weaving enterprises was around 50%, and the utilization rate of weaving capacity was below 40%.

Most clusters indicated that the operation of enterprises in June was no better than that in May, and affected by the epidemic and the arrival of the traditional off-season. The market demand was weak, and the stock of products continued to increase. Problems such as lack of order and capital pressure still exist. Enterprises adjust production, reduce start-up and maintain operation.

04

Arrival of off-season: limited shipment, reduced production and insured price.

From the present point of view, the peak season of textile industry in the first half of the year has basically passed. In July, there will be sporadic trading volume in the mentality of stockpiling goods, the upward pressure on prices is greater, and the demand side has no obvious improvement at present. Therefore, it is estimated that in the off-season market of 7-8 months, if the downstream demand is not significantly improved, the enterprise will take the strategy of reducing production and protecting prices in the future.

05

July market is expected to fade, the market needs to wait for the warmer.

In July, most textile people were prepared mentally. After all, according to the historical situation, if there is a big market in textile market, it usually happens in 3-4 or 9-10 months. Generally, there will not be a big market in 7-8 months. That is, under the off-season, the market will have to face the pressure of overstock. Only this year's stock pressure is too huge. It may not have encountered any market in the past 6 years.

Therefore, it is necessary for textile people to recognize their positions in the troubled times and consciously limit their inventories, instead of blindly producing them, and turn them into stocks, so as to avoid falling into a difficult position in the face of competition pressure.