Do Not Be Confused By Temporary Busyness. The Real Demand Determines The Market!

Recently, most textile enterprises in Jiangsu and Zhejiang provinces have officially returned to work, but the workers have not been fully put in place. The capacity of weaving mills and dyeing mills has only recovered about 3. The current market can only be said to be "exploratory resumption".

Traders take the opportunity to hoard goods, weaving manufacturers take the opportunity to inventory.

It is reported that the Wujiang area has just returned to the market, and some of the grey fabrics have begun to increase. In depth understanding, this part of the price of gray cloth is mostly order goods, the quality requirements are higher, so the manufacturer's inventory is not much.

A large trader in Shengze revealed: "now a lot of grey fabrics have gone up. The main reason is low productivity. Basically, there are only a few years ago. For the good sale of grey cloth, such as imitation silk, T400 and so on, many traders have the idea of hoarding goods, which results in a shortage of supply."

At present, traders are more cautious about hoarding goods and do not rush to hoard goods. This also leads to the fact that the inventory of weaving enterprises has not declined very much. From last year's experience, traders who store more goods to the off-season can only face the embarrassing situation of cloth in the warehouse.

But for the market goods with low quality requirements, most manufacturers say there is no bottom price. "We have not increased the price, but we will not fall in price in the short term. Now we just want to reduce the inventory. The inventory reached 3 months ago. Now we have customers to deliver the goods. We sent 40 thousand meters yesterday. Today, we have sent 50 thousand meters, so inventory reduction is the most important thing." A manufacturer of spring Asia spinning said.

Coincidentally, a factory specializing in peach skin is also said: "recently, because of low productivity, many goods have been taken in the market, and many enterprises have taken the opportunity to go to a wave of inventory. But the market is ultimately determined by demand, and the epidemic affects consumers' demand. When the latter capacity comes up, the inventory pressure will be reproduced.

The excessive inventory of grey fabric is directly related to capital turnover, and the longer the inventory is, the less valuable it is. Therefore, when the market is slightly improving, cloth boss wants to turn his stock into cash. Through this epidemic, I believe we all understand the importance of cash. It takes cash to pay for raw materials, wages and rent.

"There are 50 people in our company who haven't worked for a month, and at least have to prepare hundreds of thousands of cash flows." In 2019, the market took a plunge. Many manufacturers were losing money. Taking Tak Tak as an example, the machine platform rate had dropped to 10 yuan or even lower, which led to the fact that manufacturers of conventional products were not well-off at hand. Moreover, many receivables at the end of the year did not arrive smoothly, which made the textile industry's "money shortage" even more serious.

Terminal orders determine textile market

The textile market is still determined by the terminal order, and the order of the terminal is deficient, and the purchasing strength can not keep up. At present, the prosperity and price rise of the textile market may be just a flash in the pan.

As the largest clothing wholesale market in China, the thirteen lines of Guangzhou and Sijiqing are also closed down under the influence of the epidemic. It is reported that Guangzhou's thirteen industry will be postponed indefinitely, and the opening time of Sijiqing in Hangzhou will be delayed until March 1st. On the more than 20 days that postponed, sales opportunities for spring sales were reduced by 1/3. "Even if the market is open, there will not be many people who will take the goods for the time being. This year, it seems necessary to prepare for less business." A clothing store lady said.

From the consumer's point of view, until the end of the epidemic, many people's consumption concept will also change. Clothing is a necessity, but in front of the epidemic, it seems that clothing is not so important. Safety needs are the top priority. For example, masks, disinfectants and food expenses are increasing. The consumption of clothing will probably not recover for a long time.

Moreover, in recent years, South Korea has entered a high alert, and the epidemic in Europe has also deteriorated. Consumer demand in these areas will also change, and will also affect the order of foreign trade enterprises.