The Textile Market Is Still Unprofitable

Recently, the peripheral market is not peaceful.

On July 7, the U.S. government formally submitted a notice to the United Nations that it would withdraw from the World Health Organization from July 6, 2021. According to "Capitol Hill", a senior U.S. government official confirmed on July 7 local time that the White House has officially withdrawn the United States from who. The official said the U.S. withdrawal took effect on July 6 and has informed the U.N. Secretary General.

On July 6, local time, the office of the United States trade representative announced the Sixth Batch of products (34 billion products in the tariff exclusion list) whose validity period was originally scheduled to expire on July 9, 2020. The notice decided to extend the validity period of exclusion from July 9, 2020 to December 31, 2020. On July 9, 25% tariff will be imposed on some Chinese goods!

Since the beginning of this year, affected by the new epidemic, domestic and foreign trade market prices have suffered a continuous decline, especially in foreign trade, the recovery degree is far less than that of domestic trade. 3. In April, foreign trade orders were almost suspended, and orders were cancelled and delayed frequently. In May, some European and American countries gradually opened up their economic activities. The foreign trade proofing situation in the market began to increase, but the actual number of orders was very few.
Recently, an order of zojima fabric for making Arabian robes was placed in a centralized order, with a quantity of about 50.6 million meters. As a kind of conventional fabric, zojima fabric has a sudden hot sale, does it mean that the foreign trade orders of conventional products have improved? Is the foreign trade market beginning to pick up gradually?

After visiting the market, we found that there are some reasons for the improvement of zojima fabric. However, it is only a case in point, which does not have universality. It does not mean that the foreign trade market is improving. At present, the foreign trade situation of most enterprises is still not ideal.

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"It seems that the foreign trade market is hard to recover this year. In the past, our company's foreign trade accounted for 80% of the total, but this year we have not received any foreign trade orders. All of them are engaged in domestic trade, and the domestic trade market is highly competitive, so there are too many problems and can not meet the orders."
President Han, who has 400 looms and is mainly engaged in Nisi spinning, also said frankly: "the foreign trade orders this year are really unsatisfactory. There are few export orders. In the same period of previous years, it is much better. From the dyeing factory, it is obvious that 70% - 80% of the orders of our dyeing factory before May were export of protective clothing, but now there is basically no such thing as the export list of conventional products
The lack of foreign trade orders is still due to the serious shortage of terminal demand. From January to May of 2020, China's textile and garment exports amounted to US $97.965 billion, a year-on-year decrease of 0.80%. Among them, the cumulative export of textiles was US $59.751.7 billion, with a year-on-year increase of 21.30%; and that of clothing was US $38.213 billion, a year-on-year decrease of 22.80%.

In July, the traditional textile off-season has come, and this year's off-season may be even lighter than any other time in previous years. In addition to the prospect of terminal clothing market, there are still other factors restricting the recovery of foreign trade market.

The container prices in the United States and India soared by 20% and 475%!

Recently, many sellers revealed that the logistics of the United States is very serious. Some sellers said that since May, they have been dumping cabinets for seven consecutive weeks, "once a week!"

Time is poor, let alone, the cost of shipping containers has skyrocketed these days. Most freight forwarders said that the average price of seaborne containers from May to June was about $2500. Since July, container prices have risen to more than $3000, an increase of about 20%.

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According to the current announcement, the shipping cost of China to India is about US $1.15, and the domestic shipping cost of China to India is increasing by about US $1.5 due to the clamor of "domestic shipping" between China and India.

As we all know, since this year, the market volume and price of grey fabric and fabric have fallen. Especially, the stock of millions of meters of weaving manufacturers has become normal, and the production and sales are difficult to level, resulting in a serious decline in the price of grey fabric. And fabric prices, although there is a certain degree of decline, but the decline is less than gray cloth, it can be said that compared with grey fabric this year, there is still a profit margin, but it will not be very large, compared with previous years, there is still a certain gap. At this time, the shipping container costs will soar, and the profit margin of fabric will be greatly diluted, even loss, which is undoubtedly to the enterprise, facing not only the freight, but also the penalty for the goods not arriving on time.

New crown epidemic is still spreading, many countries suspend economic restart plan

At the same time, the epidemic is still spreading all over the world, especially in the United States. The total number of confirmed cases of new crown pneumonia has reached nearly 3 million, and the epidemic situation has not been alleviated. According to data from Johns Hopkins University, in less than 24 hours (6:12 on July 7 to 5:33 on July 8), nearly 70000 new cases were confirmed in the United States, setting a new high in recent history. The United States is still in the first wave of the epidemic, and "the situation is not good," the White House's chief adviser on the epidemic, Frank fouch, said.

Some countries have resumed the strict isolation policy again, and the level of prevention and control has also increased accordingly. At least 23 states in the United States have announced the suspension of economic plans; the Chilean government has extended quarantine control measures for 63 towns for a week; and Iranians have to wear masks in public places since May 5. In addition, the economic prospects of some countries are still uncertain: Germany is facing the "most serious recession" since the reunification of Germany and Germany; several months of city closure measures have made the Italian economy struggling.
The textile market has always been in the situation of "three points of domestic trade and seven points of foreign trade". However, due to the impact of the epidemic, the global economic recovery is slow, and the demand has been seriously hit. Between eating well and wearing well, clothing renewal is not an important choice at this stage. Therefore, when the foreign trade market can recover depends largely on the trend of the epidemic in the second half of the year.
This is the worst of times and the best of times. Danger and opportunity always coexist.
At present, it is difficult for the majority of foreign trade market bearers to recover. But from another perspective, a group of people will naturally stand up when they fall down.

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