The new year is approaching. Recently, the market situation in various places has continued, and the overall shortfall is greater than the long. Textile enterprises are facing difficulties in receiving orders.
Textile "old problems"
Environmental protection production restrictions are here again!
Recently, according to market feedback, since December, some finishing factories in Wujiang, Jiangsu Province that have not been certified by the environmental assessment have been forced to suspend production due to environmental issues; and recently, it has been heard that Shengze area requires water spraying and related companies to suspend production for 10 days without a pollution discharge certificate. As an important domestic textile production base, Wujiang area has a large textile market supply. Therefore, the introduction of environmental protection policies in Wujiang area is bound to bring certain fluctuations to the entire textile industry.
The temporary suspension of production will have a greater impact on the cloth boss. Looking back on the sudden stop of production of the company in the past few times, the boss of the hit cloth was caught off guard. Weaving, printing and dyeing, and finishing, as the only way for the production and trade of finished fabrics, play a pivotal role. In particular, the production restriction at this node at the end of the year has a certain degree of impact on the entire downstream textile industry.
Zhejiang epidemic hits again
Increased risk of market order uncertainty!
Recently, the epidemic situation in Zhejiang has been acute. Zhejiang`s polyester filament production capacity accounts for more than 70% of the country`s total production capacity, while Ningbo, Shaoxing, and Xiaoshan account for about 28% of the country`s total production capacity. Among them, the texturing enterprises in Ningbo are more concentrated. The circular knitting and printing and dyeing enterprises in Shaoxing area are relatively concentrated. At present, the polyester filament production enterprises in Ningbo area have reduced production, and the rest of the enterprises also expressed that they are considering reducing the load according to the epidemic situation.
Some textile companies believe that although the possibility of an outbreak in Zhejiang and other places is unlikely, if a textile company or an operating company is affected by the epidemic, the normal supply and demand circulation of upstream suppliers will be synchronized. Those who have direct or indirect business contacts with the Zhejiang area are currently paying close attention to the dynamic trend of the epidemic and maintaining normal communication with the ordering companies.
The Zhejiang epidemic hit again. Due to the improvement of the prevention and control level, the import and export of raw materials and finished products in the weaving factory, and the normal delivery date of the printing and dyeing factory may be affected to varying degrees, which will also increase the risk of market uncertainty. , Which in turn affects the order and production of enterprises.
Epidemic limited production, environmental protection shutdown
The short-term operating rate may drop rapidly!
At the end of November, some polyester companies in Jiangsu and Zhejiang reduced production and insured prices. Although the early-stage reduction and shutdown devices in Jiangsu and Fujian were restarted in early November, and the industry started to increase slightly, some manufacturers have recently reduced production, and the polyester operating rate has dropped to below 80%.
At the same time, from the downstream market, this year is a warm winter, and the domestic market for autumn and winter fabrics appears to be particularly light. The inventory of weaving factories continues to rise, and the inventory is relatively large in the vicinity of 2 months. Entering December, foreign trade orders have not improved significantly, and the terminal weaving market has declined. In addition, the recent printing and dyeing factory orders have been significantly reduced, and subsequent or early holidays, the overall production enthusiasm of the weaving factory is not high, and the current operating load of Jiangsu and Zhejiang looms is about 65%.
In addition, as the new year approaches, the market is gradually entering the off-season, and the impact of RMB appreciation and other factors on foreign orders cannot be underestimated. It is not uncommon for my country's textile and apparel companies to reject orders and abandon orders due to low profits, short delivery times, soaring freight rates, and "difficult to find one ticket".
All in all, in the short term, the Jiangsu and Zhejiang chemical fiber textile market will see a situation of both supply and demand decline, so the expected decline in the industry's operating rate will accelerate significantly.
