During the May Day holiday this year, basically all textile links have holidays, especially printing and dyeing factories. The holidays generally range from 2 to 3 days. And because there are many factories on holiday, the printing and dyeing operation rate during the May Day period also hit a record low of 32%. Last year, even under the epidemic, the operation rate was still above 50%, and in normal years it was basically above 70%. After May Day, the printing and dyeing operation rate began to recover rapidly. Around May 8, it had basically returned to the pre-holiday operation rate of about 85%. Although the operating rate has reached the pre-holiday level, the printing and dyeing market seems to be no longer as good as in the previous period.
The traditional peak season is over. Most of the orders are placed before the holidays
After all holidays, the printing and dyeing operation rate will rebound, mainly because the backlog of orders during the holidays requires rapid production and shipment. Therefore, the high printing and dyeing start-up rate after the holiday is to better digest early orders. This does not mean that current and future printing and dyeing orders will improve. And based on the changes in the opening rate in previous years, although there will be a rebound in the opening rate after the holiday, it will basically fall back sharply afterwards, and the market after May Day this year is hardly an exception.
According to a trader, their production in the printing and dyeing factory was very difficult in March and April this year. The phenomenon of queues for pressing cards in the dyeing factory was too common, and basically All for more than a week. However, after May Day, it is obvious that the market is not so busy. Although there are still factories pressing cards, they are much fewer. Moreover, those who are pressed are a few factories that still have “market orders”. Their purpose of pressing the cards is to make small and medium-sized orders quit in spite of difficulties and leave more production capacity to large customers.
The other is the orders currently being made by printing and dyeing factories Most of the orders were placed before the holiday. Due to the May Day holiday, downstream customers placed orders in advance, and to a certain extent, overdrafted post-holiday orders. According to the traditional pattern of slow and peak seasons for textile markets, as the weather gradually turns hotter, orders in the printing and dyeing market may further weaken. However, there is still great uncertainty in the international market under the epidemic.
As the epidemic worsens in South Asia and Southeast Asia, foreign trade orders may return
The news that the epidemic in India was out of control in April has affected the hearts of people all over the world. Data released by the Indian Ministry of Health on the 7th showed that the number of new confirmed cases of COVID-19 in India in a single day once again broke the record, reaching 414,188 cases, and the cumulative number of confirmed cases exceeded 21.4 million. ; There were 3,915 new deaths in a single day, and the total number of deaths exceeded 234,000. This string of figures also allows the country to see the possibility of Indian orders returning to the country again. However, in April, India did not implement strict prevention and control measures for the sake of domestic economic development, and the movement of people and factory production continued.
However, the worsening epidemic in India is penetrating into some countries in South Asia and Southeast Asia, and these countries are also facing the impact of a new wave of epidemics. Taking Thailand as an example, on May 4, local time, the Thailand COVID-19 Epidemic Management Center announced that there were 1,763 new confirmed cases of COVID-19 in a single day, and a total of 72,788 confirmed cases. Since April, clusters of new coronavirus infections have broken out in many places in Thailand, and the Thai government has taken emergency measures to curb the spread of the epidemic. Currently, among Thailand’s 77 prefectural-level administrative regions, 28 provinces, including Phrae, Uthai Thani and Chai Nar, have adopted curfew measures. Thailand’s Ministry of Interior requires people to abide by measures during the curfew and not to go out unless it is urgent or necessary. Vietnam has also raised the level of epidemic prevention and control due to the resurgence of the epidemic, implemented cross-regional blockades and implemented stricter restrictions. \Countries in South Asia and Southeast Asia are important textile and apparel production areas. The deterioration of their epidemic situation will inevitably lead to restrictions on textile production, which will, to a certain extent, bring about the return of orders to the country. Some institutions have predicted that overseas sales will increase in May-June. Orders will grow further. But we must also realize that the deterioration of the epidemic situation in these countries will also have a certain negative impact on our textile fabric exports.
According to customs data, in 2020, Thailand and Vietnam , Pakistan and other countries imported more than 140 billion yuan of various textiles from my country. Many domestic textile companies have more or less customers from these countries. Once their domestic textile and clothing production is restricted, they will inevitably reduce domestic fabric purchases. Although their orders may be returned to China, the orders are also in the form of clothing. Domestic clothing companies are usually limited to familiar suppliers. Companies that often do foreign trade in the market generally lack domestic trade customers and find it difficult to obtain the dividends of returning.
This year’s traditional peak season “gold, three, silver and four” are all of insufficient quality, and it is difficult to make a difference in the May market, which is gradually heading towards the off-season. Even if foreign trade orders return, only a small number of textile companies can really profit from them. Most foreign trade companiesThe potential loss is even greater.
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