According to a recent survey of the light textile market and some foreign trade companies in Guangdong, Jiangsu and Zhejiang, etc., since July, all aspects of weaving, fabrics, clothing and other terminal links have been relatively smooth in receiving orders. Basically, more than 80% or even full load can be started. , showing the pattern of “light, medium and strong”. However, the concerns of some textile and garment enterprises have also increased, and their expectations for the “Golden Nine and Silver Ten” continue to decline.
Many companies have reported that orders received since July and August have been mainly for Christmas and Easter in developed countries such as Europe, the United States, and Canada (particularly the return orders from Southeast Asia are obvious), which is higher than in previous years. Ordering 2-3 months in advance is characterized by large quantity, low grade, and poor profit, but the order arrangement and delivery time are long. Foreign trade and textile and apparel companies have relatively sufficient time to purchase raw materials, proofing, and start production and shipment.
Due to the “Double Festival” orders being overdrawn in advance, the order and export situation of textile and garment enterprises from October to November may be significantly lower than expected. According to feedback from exporters in Shaoxing, Yiwu and other places in Zhejiang, after February and March this year, domestic and foreign buyers began to stock up, and the peak sales season for cotton yarn, gray cloth, fabrics, etc. arrived early. The production load of the entire cotton textile and apparel industry continued to be at a high level, but ahead of schedule The impact of overdraft consumption has also begun to be reflected. Since August, the stocking trend of terminal buyers has gradually subsided, and companies in the textile market are scattered here and there.
As for the reasons why orders for this year’s “Double Festival” arrived several months in advance, the industry generally analyzed the following: First, due to the continued sharp rise in sea freight and “hard to find” containers, Foreign buyers and retailers place orders in advance to ensure that Chinese processing companies can arrange orders, ship, and deliver goods on time without affecting Christmas consumption and supply; second, since 2021, bulk commodity prices have continued to rise, and textile and clothing costs have continued to increase. Placing orders is beneficial to both buyers and sellers. Foreign retailers and buyers lock in the supply and cost of goods in advance, while domestic textile and clothing companies increase purchases of cotton, cotton yarn, etc. at low prices to weaken the interference of external factors; third, they are worried about the sharp adjustment of the RMB exchange rate , which will help domestic textile and garment enterprises avoid the risk of exchange rate fluctuations through various methods such as export bills, using financial instruments to lock in exchange rates and profits, and shortening the accounting period of foreign trade business. </p
