1. The production reduction storm is coming! Four major chemical fiber manufacturers plan to reduce production by 20% (Hot: ★★★★★★★★)
Terminal demand has weakened significantly recently, and polyester factories are under increased pressure to reduce production. It is reported that starting from Monday this week, Tongkun, Xinfengming, Hengyi, and Tiansheng each plan to reduce production by 20%, with a total production reduction of about 4.5 million tons. The recovery time is to be determined. The varieties currently reduced are mainly those with large losses and high inventories. Mainly based on varieties, it is expected that other companies with higher inventories will also reduce production accordingly.
2. Following Vietnam’s lockdown, another Southeast Asian textile powerhouse cannot hold on anymore (Hot: ★★★★★★★)
According to the “Daily Star” report on August 11, local export manufacturers in Bangladesh are facing increasingly prominent problems such as delivery delays and price increases. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), in order to avoid losses such as reduced shipments and inability to deliver on time due to re-intensification of the problem, have cooperated with Bangladesh textile mills The Association (BTMA) urgently held an online meeting.
The presidents of BGMEA and BKMEA proposed at the meeting that spinning mills should reduce yarn prices and maintain stable supply when export orders are growing rapidly. The chairman added that yarn prices have remained high since September 2020 and have become less competitive compared to other countries.
3. “Buy-up” failed and “promotion” failed, life for the polyester factory became increasingly difficult! (Popularity: ★★★★★★)
The decline in international oil prices has driven the entire polyester industry chain downward. The road to destocking the originally profitable polyester filament has once again cast a shadow.
Since August, polyester filament has been promoted many times, with prices reduced by 100-200 yuan/ton. On the 12th, polyester factories lowered prices by another 100-150 yuan/ton. However, the promotions since August ended up with average weekly production and sales at about 50%, and the trading atmosphere was quite sluggish. The “buying increase” failed, and the “promotion” also failed. The factory inventory pressure is slowly increasing under the current situation of continued light production and sales, and the life of the polyester factory is getting more and more difficult!
4. Ministry of Commerce warning: Vietnam’s textile and garment industry faces the risk of delivery delays and loss of orders (Hot: ★★★ ★★)
According to Vietnam’s “Investment News” report on August 4, Vu Duc Giang, chairman of the Vietnam Textile and Garment Association, said that due to the severe impact of the new crown epidemic, Vietnam’s textile and garment industry faces severe challenges. In the southern region where the epidemic is most severe, a large number of textile and garment companies have suspended production. After many companies implemented the “three locals” (local production, local dining, local accommodation) model for a period of time, they were unable to persist because the cost of maintaining production was too high, production efficiency was low, and workers had to be arranged for food and accommodation. The pressure was so great that many factories were forced to suspend production. Some companies’ 19 factories were forced to suspend production completely because they were unable to implement the “three local policies.” Currently, only spinning, weaving, and printing and dyeing enterprises can maintain the “three local” model. The common feature of these enterprises is that they use a large amount of machinery and equipment, employ less labor, and it is relatively easy to arrange for workers to have on-site accommodation and meals. However, clothing production enterprises employ a large amount of labor, and some enterprises have tens of thousands of employees. It is not feasible to implement the “three local” model.
At the same time, under the complicated Covid-19 situation in August, Vietnam, the world’s second largest clothing exporter, is facing the risk of orders being taken away by competitors. Jiading Group JSC, located in the southern province of Binh Duong, has secured orders until the end of December, but faces higher material prices, delayed shipments and higher logistics costs. The company’s management board said it would be unable to fulfill its orders if the pandemic continues. More than 80% of garment and textile companies in the southern region had to reduce labor productivity or suspend production to fight the epidemic.
5. Xinxiang Chemical Fiber’s net profit increased nearly 25 times in the first half of the year, and the price of spandex has increased by 178% in 2021 (Hot: ★★★★)
The semi-annual report disclosed by Xinxiang Chemical Fiber in the evening on August 10 showed that the income was due to the sharp rise in spandex prices, and the performance in the first half of the year increased by nearly 25 times. Xiao Shubin, secretary of the company’s board of directors, said: “Spandex products have zero inventory and even need to queue up. The epidemic has broken the cyclical fluctuation characteristics of the textile industry. We need to continue to observe the future fluctuation patterns of the industry.”
Data from the China Chemical Fiber Economic Information Network shows that the average price of spandex 40D in the first half of this year was 58,787 yuan/ton, a year-on-year increase of 101% from 29,199 yuan/ton in the same period in 2020. At the end of June, the price was raised to 71,500 yuan/ton, setting a record high since August 2010. So far, spandex prices have increased by 178%.
6. Cancel registration and revoke license! Nearly 2,000 factories were fined! (Popularity: ★★★)
Nearly In the past two years, amid the raging epidemic and rising raw material prices, many chemical companies have struggled to survive. What’s more, some chemical companies were forced to close down because they were unable to survive.
According to public information on the China Market Supervision Administrative Penalty Documents Network: more than 70% of companies have not opened for more than 6 months without justifiable reasons. The Market Supervision Administration has conducted punished according to law.
According to incomplete statistics, since 2021, an alarming number of chemical companies have been punished by the official website of China’s market supervision. Among them, nearly 2,000 chemical companies have been punished in the first seven months of 2021 alone. Home.
7. Esquel Group won an initial victory in suing the US government and is expected to be removed from the entity list (Popularity: ★★)
On August 4, according to the Hong Kong media South China Morning Post, one of the world’s largest shirt manufacturers, Hong Kong Esquel Group (EsquelGroup) won a rare victory. Previously, Esquel Group filed a lawsuit with the U.S. District Court for the District of Columbia and sought legal help for the economic and reputational losses caused to the entire group.
According to a joint motion filed in the U.S. District Court for the District of Columbia last Tuesday, the U.S. End-User Review Committee (End-UserReviewCommittee) ultimately voted to Changji Esquel, a subsidiary of Hong Kong textile and apparel maker Esquel Group, was removed from the so-called entity list.
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