On April 27, the textile and apparel sector made strong gains during the session, with Meibang Apparel, Ribo Fashion, Aokang International, and Jinhong Group, Langzi Shares, Anzheng Fashion, etc. hit the daily limit, Zhongwang Fabrics rose nearly 7%, Langsha Shares, Zhongyin Fashion rose more than 5%. On April 28, the upward trend continued. Jinhong Group, Meibang Apparel, and Langzhi shares once again reached their daily limit. Ribo Fashion and Peacebird all increased by about 5%.
The strong performance of apparel stocks is inseparable from the recent epidemic in India. According to the latest data released by the Ministry of Health of India, as of 8:00 local time on the 27th (10:30 Beijing time), in the past 24 hours, India had 323,144 new confirmed cases of new coronary pneumonia and 2,771 new deaths. This is already India has had more than 300,000 new confirmed cases in a single day for six consecutive days.
As the world’s largest cotton and jute As the second largest silk producer in the world, the out-of-control epidemic in India will inevitably affect the production of various textiles to a certain extent. The market seems to have seen the scene in September and October last year, especially when the epidemic in India is more fierce this time. The return of textile and apparel orders seems inevitable, and the domestic market is full of sounds and signs of a return of orders. So will foreign trade orders really flow domestically as the epidemic in India gets out of control?
The global epidemic is severe, severely suppressing the demand for clothing
When the eyes of the whole world are While in India, the epidemics in Thailand and Turkey also began to quietly escalate. On April 26, local time, the country reported 2,048 new confirmed cases of COVID-19 in a single day, bringing the total number of confirmed cases to 57,508. According to the Ministry of Interior of Thailand, as of the 27th local time, six provinces in Thailand have announced the implementation of curfews to control the further spread of the epidemic.
Data updated on the Turkish Ministry of Health website shows that there were 37,312 new confirmed cases of new coronavirus pneumonia on April 26, local time, and a total of 4,667,281 confirmed cases. Turkish President Erdogan announced that a comprehensive blockade will be implemented from April 29 to May 17, local time. During this period, face-to-face teaching in schools will be stopped and inter-provincial travel will continue to be restricted. This is the first time Turkey has implemented a comprehensive blockade since the outbreak of the epidemic in March last year.
India, Thailand and Turkey, In 2020, the total import value of various textiles from my country was close to 57 billion yuan. Currently, Thailand and Turkey have begun to implement curfews and city closures. These blockade measures will certainly reduce the demand for textiles and clothing to a certain extent, and domestic textile exports may be affected. Although India has made it clear that it will not implement a severe blockade policy, the current situation in India is obviously not what an ideal customer should be.
In addition, Kandla Port, the container port closest to New Delhi, announced that all terminal operators of Kandla Port have unilaterally decided to close terminals on weekends starting from April 24. Operating until further notice! There is a high probability that other Indian port terminals will join the ranks of closures in the future, which is obviously not good news for suppliers shipping to India. At the same time, the situation where the epidemic in India is out of control has also made the world worry about whether the epidemic in Europe and the United States will be dragged down. We must know that a large number of our end-customers for textile orders come from Europe and the United States. Last year, when the epidemic in Europe and the United States worsened, the cancellation and postponement of orders caused deep memories for all textile people.
It is difficult to return orders, and cost increases may come first
The epidemic in India The loss of control may threaten the effectiveness of the global fight against the epidemic. Under this danger, global textile and apparel demand will be suppressed again, order volume will be squeezed, and it will be difficult to wait for orders to return. Taking a step back, if orders from India have really returned, can our textile people really make profits from it? Will profits increase with the increase in order volume? It’s hard!
All kinds of clothing stocks in the domestic stock market have been trading in recent days. The sharp rise seems to have given us the answer. Before the horoscope was even written, the capital market had already caught wind of the situation and began to speculate on the concept of the return of orders from India. Under this market thinking model, it is difficult for underlying textile and apparel companies to profit from it. Looking back at the raw material, fabric, and dyeing fee markets in September and October last year, all kinds of costs took off with the news of the return of orders.
Upstream polyester prices saw a significant rise in September and October last year, and then started a big upward trend. Downstream printing and dyeing companies responded more quickly. After the National Day, the market saw a general increase in dyeing fees. Some printing and dyeing companies even raised their dyeing fees twice in just one week in October. These price increases are partly due to their It is related to the increase in their own costs, but it is more due to the increase in terminal orders, giving them the courage to raise prices. The textile raw material market has begun to loosen recently. On April 27, PTA futures closed up more than 3%, and on the 28th they rose more than 4%. .
Accustomed to hyping various concepts The market will not let go of the return of Indian orders in the near future. We textile people may not have received the order yet, but when we wait, there will be news of various cost increases. When many countries in the world are deep in the quagmire of the epidemic, textile people must be cautious Your order may be canceled, or the shipment may not be received, or the payment for the goods may be damaged, etc. You must also rationally judge the future textile market.
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