The Textile Market Is Expected To Fade In July.

Since the outbreak of Xinguan epidemic and its continuous spread, the global textile output and order volume have been falling, and the retail turnover has dropped sharply, which may continue to be a long-term downturn. The sharp weakening of clothing consumption demand in the international market has directly led to the product structure of China's textile and clothing exports. Although some European countries have gradually relaxed the control policy recently, the global supply chain has shown signs of recovery, but overall, the negative impact on the industrial chain is inevitable.

After half of 2020, the textile industry enters the traditional off-season in July. Whether it is domestic demand or foreign trade, the pressure of the textile industry chain is doubled, and small and medium-sized enterprises may continue to be under pressure.

01 domestic demand: prelude to the off-season, enterprises under pressure

From the perspective of consumption habits and downstream replenishment time, July and August will enter the off-season, and the orders are in a state of shortage. Industry experts said that some of the small and medium-sized enterprises may face pressure to cut production, shut down, vacation or even shut down in the month of 6~9.

02 foreign trade: Holiday prelude, less orders

As a result, the orders from France and the Netherlands increase in September at least, compared with those in the EU and Italy, they will take more holidays in September. Therefore, the downstream market in July is generally not optimistic, and the market will not improve until August.

03 production status: weak market and insufficient opening

According to the survey of weaving enterprises in cotton textile cluster, the cluster weaving market has been weakening since June. By the end of June, the average operating rate of cluster weaving enterprises was around 50%, and the utilization rate of weaving capacity was below 40%.

Most clusters said that the operation of enterprises in June was not better than that in May. Due to the superimposed influence of epidemic situation and the arrival of traditional off-season, market demand was weak and product inventory continued to increase. Problems such as lack of order and capital pressure still exist. Enterprises adjust production, reduce start-up and maintain operation.

04 off season: limited shipment, reduced production and guaranteed price

At present, the textile peak season in the first half of the year has basically passed. In July, there will be sporadic transaction volume in stock mentality. The price upward pressure is great, and the demand side has no obvious improvement at present. The export orders are still facing the risk of repeated epidemic situation, and the shipment is relatively limited. Therefore, it is estimated that in the off-season market of 7-8 months, if the downstream demand is not significantly improved, the enterprise will take the strategy of reducing production and protecting prices in the future.

05 July market is expected to be weak, market recovery still needs to wait

In July, most textile people are still mentally prepared. After all, according to the historical situation, if there is a big market in the textile market, it usually happens in March to April and September to October, and it is not likely to happen from July to August. That is to say, under the off-season, the market will have to face the pressure of accumulated inventory, but this year's inventory pressure is too large, which may not have been encountered in the previous six years.

Therefore, it is necessary for textile workers to recognize their own position in the troubled times, consciously limit the inventory, rather than blindly produce, turn the capital into inventory, and avoid falling into a difficult situation under the pressure of competition.