Affected by the epidemic in the first half of the year, the overall situation of offline companies was not favored by others. One after another textile factories and textile companies took the initiative or was forced to close down due to capital, inventory, and worker issues.
Even many people feel that they have no chance to make money this year and start to think about changing careers. After all, a large group of people are waiting to be paid, but just recently with the return of Indian “emergency” orders, the arrival of Double Eleven and Double 12. , The textile market is showing a turning point.
Foreign orders began to be placed in an endless stream, and the domestic market was slowly recovering as the epidemic stabilized. Even some countries and regions showed retaliatory centralized orders. Therefore, it can be said that the domestic textile industry can be grasped during this period. The opportunity to make money.
The epidemic broke out at the beginning of the year, and work resumed and then forced to stop
Wendy works for a home textile company in the United States. The company is headquartered in New York, but most of the suppliers are in China. She is responsible for purchasing home textiles such as bedding, curtains and towels from the factory.
In February, after the outbreak of the epidemic, factory workers were unable to arrive in time, but foreign customers have been urging orders for delivery. She can only coordinate from it to give customers a clear delivery time as much as possible. At the same time, the factory is constantly accumulating goods in the process of resuming work.
By early March, the factory basically resumed work. However, under the influence of the international pandemic, American customers have successively cancelled orders.
“For the factory, they started work late, but by March they had already done half or part of it, or maybe even just finished it. Okay, this product can’t be shipped. Put it here and hit the factory.” Wendy told Red Star News.
She even witnessed the unemployment of her peers. “There are many institutions like ours in China, all of which are representative offices and offices of foreign trading companies in China. Some of them have closed down, and they just shut down domestic offices. , Lay off employees.
Turning in June, orders surged
“Since mid-to-late June, orders have been very urgent, and a lot of orders have been placed.” Wendy suddenly became busy in the second half of the year. She said that she was even busier than the busiest period of the previous few years.
The factory has also entered a busy state. Now their factory’s orders have been placed in February next year, and they are all foreign trade orders. There is no excess capacity before the Spring Festival. Even if there is an order for door-to-door, they can only reluctantly refuse, leaving the contact information of the intended partner for the next cooperation.
According to media reports, in recent months, due to the spread of the new crown pneumonia epidemic, many large-scale export textile companies in India have been unable to deliver goods normally, and orders that should have been produced in India have been transferred to the country.
Although most of the suppliers of Wendy’s company are in China, they also purchase some products from India and Pakistan. According to what she has learned, most of the Indian and Pakistani factories currently only recover 30-40% of their production capacity, and the best-restored factories can only reach about 60%.
In Wendy’s view, the sharp increase in orders in the second half of the year was due to the impact of the epidemic, people in countries such as the United States also canceled many social activities, staying at home longer, and increasing demand for home textile products.
Freight is busy in September, textile and garment exports are booming
According to data released by the General Administration of Customs of China, in September 2021, China’s textile and apparel exports reached 283.7 billion U.S. dollars, an increase of 18.2% from the previous month. Among them, textile exports were 13.15 billion U.S. dollars, an increase of 35.8%, and apparel exports were 15.22 billion U.S. dollars, an increase from the previous month. 6.2%. According to customs data from January to September, my country’s textile and apparel exports totaled US$215.78 billion, an increase of 9.3%, of which textile exports were US$117.95 billion, an increase of 33.7%.
According to customs foreign trade data, China’s textile export industry has seen rapid growth in the past few months. At the same time, as the peak season approaches at the end of the year, foreign trade export orders have increased rapidly, resulting in a substantial increase in international ocean freight and the phenomenon of container dumping. Appear frequently.
According to the feedback from the relevant personnel of Ali International Station, “From the data point of view, international trade orders have been increasing rapidly recently. Ali’s internal development of double-hundred standards is to serve 1 million TEUs and 1 million tons of incremental trading products.”
On October 23, the Red Star Capital Bureau consulted with a number of maritime international logistics companies and learned that: currently departing from Dalian to the Port of Los Angeles, the quotation is mostly US$2800-3900/container (depending on the size of the container and the different types of goods. difference).
Among them, Angela, the person in charge of a logistics company that specializes in operating shipping routes to and from the United States, told the Red Star Capital Bureau that in previous years, the price of the Dalian-Los Angeles shipping route was generally US$1,000-2,000/container, but this year began in May and June. Prices have been rising.
The textile industry broke out in October, and foreign trade orders returned
“A few days after the National Day, the order quantity in the factory can be said to be very hot. The quantity of grey fabrics into the warehouse is 700-800,000 meters every day. Now all the machinery and equipment in the factory have been in full production. This situation rushed to the beginning of this year. It appeared at the time, and did not appear again until October. But now it is not enough to start full production according to the daily inventory volume, and it is estimated that it is not far from the warehouse explosion.” said the person in charge of the dye factory.
Orders have improved, in fact, it is very obvious before the holiday. It is understood that the market situation of this dyeing factory suddenly improved more than a week before the National Day, and the daily warehouse volume was able to stabilize at about 700,000 meters. You must know their daily warehouse volume in the middle of September. Most of them hover around 300,000 to 400,000 meters, and the overall operating rate remains at around 60%. The market flipped in just half a month, and it continues to be surprisingly gratifying. For this reason, their National Day holiday has been reduced from 3 days last year to 2 days this year.
Investigating the reason, the person in charge of a clothing company in Shengze, Jiangsu said that due to the current severe epidemic in foreign countries, many manufacturers are in a state of suspension, resulting in no shipments. In China’s textile industry, the operating rate has basically recovered. 90% or more, so many orders began to return. In addition to soaring orders, textile raw materials such as cotton, viscose, and polyester have also seen a surge in recent times. In the textile market, the domestic and international dual cycles have driven the prosperity of the upstream and downstream of the entire textile industry chain.
Post time: Nov-02-2020