Cut production? No, we don’t cut production! These signs reveal market conditions!

Jul 14, 2020  |  by Zhao xh


The sharp rise in raw materials, the continued decline in the price of grey cloths, the contradiction between the two has deepened, and the weaving market has once again fallen into a dilemma. Enterprises in the Jiangsu and Zhejiang textile markets are still insisting on production. The reason why the boss insists on production, in addition to taking into account some details of production, in fact, more important is their enthusiasm and confidence in production.

Let’s first look at the orders received by fabric manufacturers. At present, there is little sign of the decline in orders received by downstream traders, and the recovery of foreign trade has further improved. As foreign trade is just at the stage of recovery, foreign demand for clothing has also been on track.
 
In terms of domestic sales, new orders are constantly being placed. Although there are no hot-selling products in the market, conventional products are being sold. This year is a special year, the production plan has been disrupted, so the order does not necessarily follow the previous season of production and sales, the traditional off-season may not be weak.
 
It is said that the dyeing and printing market can best reflect the entire market. The market conditions of dyeing and printing factories have been relatively stable recently, and there has been no major ups and downs. At present, the operating rate of dyeing and printing factories in Wujiang area is maintained at about 60%, at a medium level, and can maintain normal operation. There are also some dyeing and printing factories are busy.
 
The situation of other finishing enterprises has also improved. The fabrics produced at this stage are mainly for autumn and winter clothing, most of them require finishing processing, so the orders of these manufacturers have increased.
 
The Binhai industrial park in Keqiao, Shaoxing, is located in the golden zone of the Yangtze River Delta, and is closely connected to China Textile City, the largest textile distribution and R&D center in Asia. Therefore, the enterprises in the park can be connected to the market terminal in time, and have unique advantages in terms of trade and industry information. From the actual situation, the flow of people in the park is still very large. It can be said that apart from the fact that people still wear masks and can still see the impact of the pandemic, everything else has gradually returned to the normal.
 
Various indications indicate that the current market has not entered the off-season as expected, but remains stable and showing signs that it may be better at a later stage. Businessmen have also seen this. Even though the current inventory of grey cloths is high, they still have hope and are unwilling to cut production easily. This year is a special year, the judgment of the market outlook will be more difficult, maybe the next wave of market is coming, no matter what, confidence must not be lost!

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