(Summary description)By convention, September is the traditional peak season for the textile industry, and textile companies will prepare enough raw materials and operate enough machines. Companies are full of expectations that terminal demand will rebound sharply after the G20 Summit. However, according to this year's view, the current corporate orders are still small, the weaving operation rate is also slow, and the market's expectations have failed.

As the weather turns cooler, although the market sales of finished fabrics have gradually rebounded, due to the main sales of pre-stocks, the current situation of weaving enterprises' orders is still not good, and the overall start of work remains low. After the end of the G20 summit, some restricted textile enterprises have continued Work was resumed, but the overall recovery was relatively slow. Some of the looms of the company were still in a state of shutdown, and the tensions of previous years when the machines were running at full capacity were eliminated. The market had little hope for the traditional gold, nine, and silver. What is the reason for suppressing the late arrival of the textile peak season? The author believes that the analysis is mainly from the following aspects:
First of all, the slowdown in domestic economic growth and the economic downturn in foreign countries have a direct impact on my country’s foreign trade sales. At the same time, the renminbi exchange rate has fluctuated sharply since this year, making textile companies afraid to take large and long orders rashly. Bring losses. The poor external economic environment has made the status quo of textile exports worse and worse. From January to August 2016, my country’s cumulative export of textiles and apparel was US$178.337 billion, a year-on-year decrease of 3.33%, of which the cumulative export value of textiles was US$71.815 billion, a year-on-year decrease. Decrease by 0.50%. Many export-oriented enterprises have turned to domestic sales, which has also increased the competitiveness of the domestic textile market for domestic sales, and many small processing textile companies are facing the risk of bankruptcy.
　　Secondly, as the price of textile raw materials has risen sharply, the profitability of weaving products has decreased, and manufacturers are not enthusiastic about production. Affected by the G20 summit in the early stage, polyester, nylon and other chemical fiber raw materials have risen. Stimulated by the production of reserve cotton, the price of cotton has risen rapidly, the price of viscose has also risen sharply, and the cost of raw materials has risen sharply, but the price of downstream textiles is showing Disconnected, unable to absorb the pressure brought by rising raw material costs. Coupled with this year's environmental protection policy pressure, dyeing fees continue to rise, and cost expenditures are increasing. Weaving companies are in the "sandwich layer" of the industrial chain, and industry profits have shrunk significantly. At present, most manufacturers focus on fulfilling regular orders, with fewer new orders and low production profits. Therefore, production enthusiasm is not high, and most manufacturers are looking forward to a better market outlook.
　　 Once again, the inventory pressure of enterprises remains high, and the weak demand in the weaving industry is hard to return. At this stage, the biggest problem in the terminal market is the order issue. Textile companies generally report that there are fewer orders, which has led to a slow decline in weaving companies' inventory. The inventory of textile raw material manufacturers is also high, which has led downstream factories to be cautious in purchasing raw materials and maintain rigid demand. Under the pressure of high inventory of conventional products of manufacturers, enterprises often produce according to orders, and the rate of vacancy in machine factories is high. The industry's enthusiasm for production is greatly reduced.
　　 In addition to the above-mentioned major factors, tight corporate capital chains, long payment periods, severe product homogeneity, and oversupply in the market have also contributed to the long-term downturn in the textile industry. Coupled with this year's supply-side policy pressure and increased national environmental protection efforts, many weak small and micro enterprises are facing survival difficulties. At present, the textile peak season has not started, the overall demand recovery is relatively slow, the start of the weaving industry is limited, and the mentality of the industry gradually stabilizes, waiting for the recovery of demand in the later period.

• Categories:Industry information
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• Time of issue:2018-04-13
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