Recently, there have been “unusual movements” in dyeing factories. There are signals from Shengze and Changshu that individual dyeing factories have begun to increase their activity. Is the market about to rebound in the off-season?
The printing and dyeing market is heating up, and dyeing factories are queuing up again
Recently, a dyeing factory salesperson I told the editor that the work in the dyeing factory has increased significantly recently. The dyeing factory is operating at full capacity and the queuing phenomenon is also obvious. “Recently, there have been a lot of orders for sofas in our factory, and the queue lasts for about half a month. Many customers are urging me to ship the goods quickly, but they can only wait in line.”
In late July, the printing and dyeing market in Shengze area has improved compared with the previous period. Some dyeing factory salesmen said that the number of warehouses has begun to increase, and the number of dyeing factories has begun to increase. The operating rate has also increased. According to monitoring by China Silk City Network, the current operating rate of dyeing factories has increased from 55% in the previous period to 65%. Although it has not increased to the level of the same period last year, it is about 10% better than the previous month. “We only opened 50% of the machines before, but now we have 80% of them. Although there are still not many large orders in the factory, the orders are indeed more than before.”
It is understood that in the second half of the year, the transaction volume of spring and summer clothing fabrics continues to shrink, and orders mainly for imitation silk begin to weaken, while the autumn and winter clothing in the domestic trade market Fabric proofing, testing and orders have gradually begun to increase. Therefore, during this period, the dyeing factory’s orders for autumn and winter fabrics have increased significantly, especially for stretch fabrics, and the market transaction atmosphere is more prominent.
However, due to the impact of the epidemic, the ordering mode of terminal traders has changed this year. In the past, orders were mostly based on “large quantity and good price”, but this year they have mostly changed to “small batch” , multi-batch” mode. “Currently, the work in the dyeing factory has improved, but the transactions are relatively complicated. The order quantity of 20,000 to 30,000 yuan in the factory is already considered a large order.” said a salesperson of a dyeing factory. Therefore, the current market situation has not broken out on a large scale, and the dyeing factories are only partially overcrowded, and there are queues waiting in some links.
From the perspective of the industrial chain, printing and dyeing is in the downstream link of the fabric market. Now that the downstream market has released signals of improvement, is the trade end also performing better? This is not the case. According to the editor’s visit and research, the orders on hand of traders have not improved much at present, and many traders even started taking holidays and taking turns in July.
As we enter the off-season, sales staff are notified of a holiday!
“Our boss notified us of a holiday last week. Now all the company’s salespeople are on holiday. We don’t know when the holiday will end.” Specializing in fabrics Xiao Shen, a salesperson in the trade, said that after 10 years of working in the textile industry, it was the first time he was given a summer vacation. Xiao Shen felt quite uneasy, “There have been no orders since mid-June. In the past, there would be no orders during this period.” There are no orders for gabardine or anything else, so the boss can only take holidays to reduce costs.”
In fact, Xiao Shen’s case is not an exception. Looking at the entire market, whether it is weaving or trade On the other hand, holiday operations are becoming more and more frequent. For textile bosses, although there are currently orders placed by downstream customers, in the face of a market with overcapacity, these limited orders cannot fill the “belly” of every trading company. Therefore, the overall market situation is still relatively tepid and has not appeared. The large-scale recovery in the market has also led to an improvement in the orders of a small number of trading companies, while most companies are still in a “lack of orders” state.
The reason is still caused by poor sales in the downstream clothing industry.
In the recent news focusing on the clothing industry in CCTV’s “Economic Information Broadcast”, the phenomenon of shrinking demand in the clothing market in Guangzhou and Wuhan and the normalization of discounts was also explained. One of the clothing store clerks said in an interview: “The turnover used to be tens of thousands a day, but now the turnover is sometimes zero. This phenomenon of not opening orders has never happened before, but this year it often happens .” It can be seen that the shrinking demand in the clothing industry has become a “certain fact”, which also makes it difficult for the demand for fabrics to improve.
1. Marketable products are heating up and orders have not disappeared
Looking at the current market, there are very few companies that have successfully escaped the epidemic and still maintain normal order volume, but it is not impossible. Especially in the second quarter, demand for highlight products has been reported in the market from time to time. Strong news, such as imitation acetic acid, Sph card breaking, four-sided elastic, etc. The same is true in the third quarter. Although the overall environment is not performing well and July is a seasonal demand off-season, it does not prevent marketable products from appearing on the market.
It is said that in addition to the good performance in proofing and ordering of elastic fabrics such as four-way elastic, T400, T800, etc., fashionable fabrics such as reflective bronzing, colorful coating, Fabrics such as temperature-sensitive fabrics also performed well. Some finishing factories said that orders were abundant and the market outlook was expected to be good.
Therefore, in the case of a poor general environment, it does not mean that The market has “disappeared”, but “survival of the fittest”. As long as the products are suitable, the market share will not be lost.
2. The improvement of orders is limited, and the transmission and weaving end is weak
The recent improvement in the dyeing factory market has surprised many market participants, and has even left weavers puzzled: Why have their own orders not improved, and the factory is still hoarding more and more gray fabric inventory?
After all, this is the traditional off-season. Even if the domestic trade market suddenly develops and ushered in a small wave of market conditions, the transmission to the weaving end is still relatively weak. At present, there is obvious overcapacity in gray fabrics, and many weaving companies The inventory on hand of manufacturers has been at the warning line for about two months, and it is difficult to destock in the market. Therefore, many weaving factories have still begun to implement high-temperature holidays and load reduction plans, preparing to have a good “summer vacation” during this special period.
In addition, there are still many uncertainties in the recovery of the foreign trade market, especially the Sino-US trade friction The situation continues to heat up, causing some countries to be resistant to Chinese products. Therefore, it is still unknown what state the foreign trade market will return to in September and October this year.
Although The market is full of various opinions about the current market situation, but the editor believes that the current wave of market conditions has come too suddenly and there are great variables. At present, for enterprises, no matter whether the market is good or bad, they must first survive the off-season, and then survive A period of recovery will usher in spring flowers!
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