China Fabric Factory Fabric News A textile trade center is temporarily closed! There is a shortage of fabric orders, and this situation makes people feel at a loss!

A textile trade center is temporarily closed! There is a shortage of fabric orders, and this situation makes people feel at a loss!



Recently, some areas have been affected by the epidemic, including some important textile cities. Not long ago, the epidemic in Jiangsu was properly, effectively and timely control…

Recently, some areas have been affected by the epidemic, including some important textile cities. Not long ago, the epidemic in Jiangsu was properly, effectively and timely controlled, but just as the Golden Three and Silver Four were about to begin, Guangdong was once again troubled by the epidemic.

01

Dalang Woolen Trade Center closed

On February 28, 31 new locally confirmed cases were reported in Guangzhou Province, 23 cases were reported in Shenzhen, 7 cases were reported in Dongguan, and 1 case was reported in Zhongshan. There were 25 new local asymptomatic infections, with 5 cases reported in Shenzhen and 20 cases reported in Dongguan. From 18:00 to 24:00, Dongguan City had 6 new locally confirmed cases (mild cases) and 15 asymptomatic infections. Among them, there are 16 cases in Dalang Town, 3 cases in Humen Town, and 2 cases in Changping Town.

Dongguan is also an important position in the textile market. Among them, Dalang, which has been affected by the epidemic, is one of the top 100 towns in the country and an important place for the production of woolen fabrics. In 2020, the market transaction volume of Dalang woolen weaving industry chain reached 60 billion yuan, with an annual output of 800 million sweaters, accounting for 18% of the national output, and sweater output accounting for 1/6 of the world. Now affected by the epidemic, Dalang Woolen Trade Center has been closed. At this moment when we are about to usher in three gold medals and four silver medals, it can be described as a heavy blow.

02

The impact of the epidemic

The semi-finished products that were originally produced on the machine or are now half-finished can only be placed there and cannot be produced. However, the semi-finished products placed there cannot be sold. Factors such as financial pressure and raw material costs will put pressure on the bosses. It was hard to breathe. Spring and summer fabrics have already been launched, especially in Dongguan. The market should have opened earlier, but now we can only stop it, and there is no way to do it even if we have orders.

Although affected by the climate, the temperature in most parts of the country did not rise significantly after the Lantern Festival this year. The launch of spring clothing was hindered to a certain extent. The order volume of garment factories was not as “hot” as in previous years. However, the climate in various places is gradually warming up. The peak season is for the Guangzhou area. It will arrive sooner or later, but now affected by the epidemic, the market, which had initially improved a little, has been brought back to its original shape.

Moreover, the current international situation has also affected the price fluctuations in the upstream end of the entire textile market. If the epidemic situation in Dongguan is cleared and work resumes again, the price of raw materials will have completely changed. I don’t know whether to cry or laugh.

03

market situation

Returning to our Jiangsu and Zhejiang regions, weaving enterprises are still in the process of gradually restoring their operating rates. According to data from China Silk City Network, the current operating rates in Jiangsu and Zhejiang have risen to about 64%, an increase of 6% from last week. . The operating rate is rising and is at the level of the same period in previous years. Although the current market is mainly dominated by orders before production, the operating rate just meets the current production.

However, manufacturers have always been less enthusiastic about purchasing raw materials because they are worried that raw material prices will skyrocket. Nowadays, there is no significant sustained growth in terminal demand, and the price of gray fabrics has been at a low level. It can be said that the gray fabrics of weaving enterprises are sold at a guaranteed cost. Therefore, the price changes of raw materials will directly affect profits, so manufacturers will inevitably be cautious.

At present, the textile market is basically in a cost-led situation, and the price of raw materials has increased significantly. The epidemic is still continuing, which will be a big blow to the market, causing market demand to continue to shrink and the recovery cycle to continue to increase, which will be a big test for terminal demand. Secondly, the international environment has been relatively complex recently, and the future direction of the situation is also very unclear. It will not only affect the upstream, but also have an impact on foreign trade, which will have an unpredictable impact on the industry. Negative factors will continue to surround us for some time to come.

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Author: clsrich

 
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