Textile thread market has been opened up
11 Oct / 2019The peak season of the textile market will be two months ahead of time relative to clothing. We textile workers should be in the pre-order preparation work now. However, the recent international situation has not been quite smooth. Major news such as interest rate cuts in the United States, tariff increases on China and the breaking of the "7" RMB exchange rate have not only affected market confidence, but also increased many uncertainties.
Content weakening, thread orders declining, profit shrinking
There is no doubt about the weakness of the textile market this year. The performance of the domestic trade market has been very flat in the face of both excess textile production capacity and shrinking garment market demand.
According to a knitting factory specializing in bamboo knitting, they are mainly engaged in the domestic market. The products are relatively small and special, so their customer groups are relatively fixed, and they have a voice in the fabric price. Although the profit per meter under their control is not much different from that of last year, the total order volume of this year has declined by 20%, that is, the total profit will also decline by 20%.
A company engaged in functional fabrics trade feedback to us that they do not have a weaving factory, in the off-season before their pressure burden is not so great. However, the recent order reduction is quite severe, reaching more than 20%, and the types of orders are also biased towards lower prices of fabrics, such as our recently popular mechanical elastic fabrics, which have similar quadrilateral elasticity, but the price is relatively much lower. Mainly this year, there are too many negative factors on the periphery, leading to customers and traders watching now. The entire industry chain lacks confidence and dares not venture forward, and the orders on hand can only be maintained until the end of August.
At present, the focus of domestic market is not on orders, but on proofing. A supplier specializing in polyester and cotton products complained to us that they have been proofing recently. The number is a little surprising, reaching more than 200, but even though there are so many proofers, no order has come down since the sample was sent. A merchandiser who often runs after finishing and processing factories also told us that he often went to a compound factory recently to sample. He made many orders in this factory in the past year, but this year almost half a year ago, there is no decent order. Nowadays, they can't be lifted when they walk into the compound factory. Even if the proofing is slow or damaged, they are embarrassed to blame them. But the client's request, the boss's arrangement can only be hard-headed, licking face, eager to have a compound order down, so that I can straighten my waist.
Foreign trade loosened,thread orders issued, profits improved
The textile foreign trade market suffered from a lack of confidence and reduced orders under the influence of tariffs imposed by the United States last year and the global economic downturn. However, with the construction of "one belt and one road" in China, the other international markets, especially Southeast Asia and the global market, have been greatly expanded. The foreign trade market gradually came out of the shadow and began to improve. The most direct manifestation is that the number of orders placed and the number of individual orders increased significantly.
According to an old weaving factory in Wujiang area, they are mainly engaged in foreign trade at present, and the overall situation of orders is fairly acceptable. Now we are working on the multi-F polyester taffeta cotton sense series. Although the total order volume has declined, the profit can be guaranteed. It should be said that elastic fabrics are the most popular products in foreign trade recently. Recently, their T400 fabrics have been ordered constantly, and their profits are much higher than those of conventional varieties. Another weaving factory also realized that the T400 is in the market, but the stock in the factory is at a high level. It is worried that the market will not be able to clear the stock in time. It can only move at a low price. At present, the profit per meter of cloth is only a few cents.
Another supplier who has been engaged in foreign trade for many years has introduced to us that their recent foreign trade orders have improved markedly, with orders of more than 50,000 meters issued in succession for several days, and orders of more than 100,000 meters being won with customers, and the possibility of obtaining them is quite high. At present, the main types of orders are quadrilateral bullets, which are of high gram weight and relatively thick. This kind of products are mainly made of autumn and winter trousers. Customers have higher requirements for each order to come for inspection. Fortunately, the profit is still good, and 15% is still guaranteed.
Recently, the elastic fabrics in the foreign trade market are in a popular position, and the characteristics like "King glory" and "T800" and the attractive elastic varieties with gimmicks are more attractive to customers. Although the sales price is not high, the profit is still good. At present, there are many inquiries and samples.
At the forefront of the clothing sales season at the end of the year, the performance of the textile domestic and foreign trade market is not consistent. Because of the problem of supply and demand, the domestic market has been in the situation of "oversupply" for a long time. It is difficult to get rid of the off-season and walk out of a "negative upward" road.
At present, the whole market performance is relatively conservative. In the same period of last year, many autumn and winter fabrics have been ordered, but now many suppliers are still staying in the stage of proofing and bitter orders. The foreign trade market began to improve after adapting to the changes of the international situation, especially the arrival of elastic fabric orders, gradually opened up the situation, making sales and profits better together.