Foreign Trade Orders Fell Sharply, And Businesses Were Fighting Hard. When Is The Off-Season?

Orders tumbled 90%

"Our company is doing some silk fabrics, silk, acetic acid and other slightly high-end fabrics, and basically are foreign trade exports, mainly exported to the United States. In the past year, we can achieve more than one hundred million yuan a year, but this year because of the serious epidemic of pneumonia, the United States is the hardest hit, and our orders have fallen by more than 90%, "said one trader responsible. And their company has more staff and higher production costs, and the turnover is hard to guarantee normal production and operation. They are fully supporting at present. As for how long it can last, everyone has little confidence.

The reduction of orders is so large that enterprises will inevitably lose money. Of course, enterprises in this state are not only limited to them, but also in a small number, especially textile enterprises specializing in foreign trade or foreign trade.

According to the data of the National Bureau of statistics, in the past two years, the number of loss making enterprises in our textile industry is relatively stable every month, roughly 3000. But this year, the number of deficit spinning enterprises rapidly increased, reaching 6500 in February and March. Although the number of losses in April has decreased slightly, there is still no return to normal.

Loss seems to be an unavoidable problem for our textile industry at present. How to avoid losses or reduce losses is the top priority for all textile enterprises.

This year, the textile market is affected by the epidemic and is in an unprecedented low season. But fortunately, the oil market has been in a historical low for a long time, due to the shrinking demand and the price war of oil producing countries. Affected by this, the price of raw materials for textile and chemical fiber also makes people feel "endless".

Although there is no demand for orders, raw material prices are low enough, and chemical fiber fabrics are also easy to store. Therefore, the vast majority of textile enterprises in the face of weak market conditions, the first thought is not to reduce the operating rate and reduce costs, but to reduce the cost of raw materials to store gray cloth, so that the market can improve.

But not all fabrics are suitable for large-scale storage, especially high-end and unconventional fabrics. Their general demand is not large at the same time. At the same time, the reserve requirements are high, and the natural production cost will be pulled up. It is very difficult to quickly release and return funds after the epidemic is over. And those conventional and ordinary fabrics do not have such problems. They have a large demand and a large number of customers. They are suitable for quick revitalize the gold chain after the epidemic is over. Therefore, some factories, and even some grey cloth factories that produce high-grade fabrics, do not hesitate to "kill chickens and use knife", but use advanced equipment to produce low-end fabrics.

But the textile off-season was a bit unexpected for everyone, it lasted for a long time and there was no sign of improvement. For textile enterprises, it is acceptable for most enterprises to produce two or three months' high load production. If half a year or even a year is in this state, it will be a bit difficult. So they adjust the strategy again, waiting for customers to place orders, and sell them to customers, especially the regular customers who are doing all the year round. Because they have already trusted each other, and the old customers of the year round must know that the price of grey cloth is very low now.

According to a trader, they have several fabric orders all year round, but the colors are different and the fabric types remain unchanged. The grey cloth factory that supplied them has been contacting them recently, so that they can make more ready supplies when the price of the cloth is low. Now the price of raw materials is low and the price of fabrics is low, which is known to all textile people. They really have a little bit of interest in counting tens of thousands of meters of grey cloth, waiting for the market to improve and expand their profit margins.

Many textile enterprises have encountered the situation of sharp decline in orders and widespread losses, and will continue to ferment along with the epidemic situation. Before the economic recovery in Europe and America, foreign trade orders are hard to satisfy all textile people's needs. Especially in the near future, the textile market is turning pale again. Although it is already summer, textile people will soon experience the most bitter winter.