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[Really "rat" is not easy: take stock of the year-end difficulties in the textile industry]
Release date:[2021/1/4] Read a total of[465]time

2020 is coming to an end, but the market at the end of the year is still facing various difficulties. 2021 is coming, what will happen to the market in the coming year?


  Rising raw materials: not losing money has become the biggest luxury


   While profits have been compressed to the extreme, raw material prices have begun to rise on a large scale. First, nylon and spandex, and finally polyester filament, and the price of grey cloth has risen to varying degrees driven by raw materials.


Trader Manager Yang complained that there was no profit from receiving orders, and the price of raw materials has risen again, resulting in more expensive costs. Some orders are still at a loss, and now they are able to complete a few orders at a loss. The greatest luxury.


   Freight transportation is difficult: containers need to be "lottery" to fight luck


  The goods are made, but it is a troublesome thing to ship them out.


   The foreign epidemic counterattacked, local production was greatly affected, and the demand for Chinese products continued to increase. In addition, the shortage of overseas manpower made it impossible to unload cargoes, resulting in a large number of containers being pressed at European and American ports. The container "has no return" has also made many cloth bosses watch a large number of orders and good products, but they can't be shipped out. This situation has been going on for half a year. For this reason, the time for exporters to book in advance continues to extend, from one week in advance to one month in advance, and sometimes even a lottery is needed to fight for luck.


   As the end of the year approaches, the situation of "hard to find a box" has not improved, and has even worsened.


  The price is difficult: if the price is pressed down, the money will be deducted


   Mr. Wang, the person in charge of an artificial silk fabric manufacturing company, said that the export market of artificial silk was not good this year, resulting in a large amount of inventory in the market, severely oversupply. Therefore, traders tend to keep prices very low with almost no profit. Not only that, while driving down prices, there will be all sorts of faultfinding. In previous years, some small mistakes that were unavoidable in the production process that were acceptable will become reasons for deductions this year, which further compresses the small profits. .


   Mr. Wang’s experience is not an isolated case, but a common phenomenon every year when the market is not good. Under the general environment of this year’s epidemic, the artificial silk that sells poorly is even more “eaten to death”.


   Difficulties in foreign trade: "Christmas" and "New Year's Day" may be silent


China’s textile and apparel industry is highly dependent on exports. At the beginning of the year, the export volume of textile and apparel products did not decrease but increased. This was mainly due to the strong demand for anti-epidemic supplies from countries with outbreaks overseas, which drove our anti-epidemic fabrics, clothing and masks The exit. However, the number of domestic companies involved in epidemic prevention is still limited. Most of them are ordinary garment fabric factories, and there are not many companies that can profit from this wave.


   Since December, the out-of-control epidemic situation in Europe and America has once again cast a shadow over the export of textile and apparel fabrics. There are generally 600,000-700,000 new cases every day in the world, and sometimes even close to 800,000. The number of new confirmed cases in the United States every day is generally more than 200,000. The British epidemic is even more exaggerated. British Health Secretary Hancock said that the new strain of the new coronavirus found in the country has been out of control, and the mutated new virus is 70% more transmissible than the original strain. London, UK has begun to stage a big escape .


  Uncertain expectations: inventory may affect the textile and apparel market next year


   The Christmas season in Europe and America in 2020 will inevitably lead to unsalable clothing market due to the outbreak of the epidemic and restrictions on people's travel. This part of the inventory clothing will undoubtedly appear in the autumn and winter market next year, which will certainly lead to a decrease in orders for next year’s autumn and winter apparel fabrics to a certain extent.


   On the other hand, the current textile and apparel market is generally optimistic about the market in the second half of next year. This view is mainly based on the gradual investment in vaccines. But the emergence of new strains in the UK will cause the current vaccine to fail? Of course, there is no definite evidence that new strains may affect vaccines and treatments, but the possibility of impact still exists.


   In the first half of next year, due to the backlog of clothing stocks in this spring and summer, it is basically not optimistic, and there is a high probability that orders will not improve. Once the market loses its optimistic view of the second half of next year, the lack of orders will continue throughout 2021. The vast majority of textile companies have been struggling to support this year. If the market does not improve next year, many textile companies may close down and leave.


   Before the global epidemic is brought under control, there are still big uncertainties in the textile market. In particular, the recent worsening and out-of-control epidemics in Europe and the United States have made the textile market in 2021 even more confusing.


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