Europe Suffered The Second Wave Of Epidemic, Foreign Trade Enterprises Faced With New Orders In A Dilemma

On the evening of the 21st, the European and American stock markets suffered a fierce sell-off, and the price of gold and oil continued to fall!

The main reason for the second wave of panic in the stock market is that many investors are worried about the second wave of economic recovery. In addition to investors, boss Bu is also very worried about this wave of epidemic, and foreign trade orders that have just improved will be "cool"? Is there a risk of cancellation of the order now placed?

Foreign trade demand shrinks, order cancellation worries rise again

Since September, there has been another high outbreak in European countries, and the number of newly diagnosed cases of new coronal pneumonia in a single day continues to rise. It is reported that in Europe, 300000 new cases of new pneumonia were diagnosed last week, breaking the highest record since the outbreak. As the epidemic continues to ferment, European countries have implemented more stringent social distance restrictions.

"These days we have been keeping in touch with our customers in Europe. We are afraid that if we cancel the order, we will repeat the story of the first half of the year." Mr. Zhang, a trader, said. Coincidentally, a textile boss who has been in the textile market for more than 20 years said: "now we are very worried about the situation in Europe and the United States, because our customers are from European and American countries. If some European countries take measures such as closing down cities, it will be very difficult for our goods to be transported, and we can only be forced to cancel them."

Recently, foreign trade orders have improved, and many traders have received orders of tens of thousands of meters. This is because, according to the Convention of previous years, in order to prepare for the Christmas season, foreign customers will place orders in advance. From the end of September to October is the time point for centralized delivery, and the rebound of European epidemic situation happens at this time. Now, whether the orders exported to Europe on hand by traders will be cancelled or delayed again due to the epidemic situation is one of the most worrying problems of boss bu 。

"In a word, we can't make delivery as soon as possible. We can only make a series of problems within one week from the time of placing an order to the textile factory. We can only make a series of problems within one week from now on." One trader sighed.

In addition to the epidemic, the appreciation of the RMB has also increased the uncertainty of orders

In foreign trade, the most worrying thing is the fluctuation of RMB exchange rate. The recent appreciation of RMB is a great loss for foreign traders who have no settlement of foreign exchange. A foreign trade boss said: "our net profit this year is only about 5%. Because we usually settle the exchange rate once every three months, if the appreciation of RMB in these three months exceeds 5%, then we have not made any profit, or even lose money."

Due to the scarcity of foreign trade orders this year, many enterprises have agreed to the price reduction and price reduction requirements of customers in order to win over customers. The above-mentioned trader disclosed: "our profit point was about 10% last year, but this year it is only 5%. Although the gray cloth and dyeing fees have decreased compared with last year, the customers have to lower the price more fiercely. In order to maintain the operation of the company, they have to bear the pain However, if the RMB rises sharply, our 5% profit will not be able to survive. "

The foreign trade market is now the phenomenon of grabbing orders and pushing down prices repeatedly. The fluctuation of exchange rate has exacerbated the uncertainty of foreign trade orders. Next, textile owners need to be more cautious in quoting, and be careful not to dilute profits in the settlement of foreign exchange because of exchange rate changes.

END

For cloth owners who have experienced the impact of the first wave of the epidemic, they are already scarred. With the arrival of September, many textile owners have just gone to a wave of inventory, but now the epidemic situation abroad is rebounding, people have to worry about whether the same situation will occur in the first half of the year. But too much worry is useless, the order to receive or have to accept, just to control the risk. Of course, we also hope that the epidemic situation in Europe can be brought under control as soon as possible. After all, only when global demand recovers can foreign trade orders be hopeful!