Why has the textile market come to this?

If asked how the recent business, I believe that most textile people will say that the recent business is not good, but the demand is really poor? Not so much. But if you like, it's not much better.

There is no shortage of demand.

Whether from a macro or micro point of view, the overall market demand has not shrunk significantly compared with the past, and even some links are still growing.

From a macro point of view, in October, China's textile and apparel exports were 25.48 billion US dollars, an increase of 11.9%, of which textile exports were 12.39 billion US dollars, an increase of 16.1%; Garment exports were $13.09 billion, up 8.1% year on year. From January to October, the cumulative export of textiles and clothing was 247.885 billion US dollars. In the case of obvious export growth in October, the cumulative export of textiles and clothing returned to positive growth in January to October, of which the cumulative export of textiles was 116.686 billion US dollars, an increase of 4.1%, and the cumulative export of clothing was 131.199 billion US dollars, a decline of 0.7%. Month-on-month point of view, October textile and apparel exports increased by 2.83%, there is a clear counter-seasonal growth situation, for the first time in more than a decade October month-on-month export growth, according to customs data show that from 2011 to 2023, domestic textile and apparel exports in October each year are falling trend. The decline ranged from -14.49% to -0.67%, and on average, from 2011 to 2023, the average month-on-month decline in October exports was -9.44%.

From a micro point of view, there is no shortage of orders in the market, including large orders up to millions of meters, and the number of small orders is more, as long as you are willing to accept, orders are always there.

Quality orders scarce

Although there is no shortage of orders in the market, high-quality orders are indeed very scarce.

In the current market, textile enterprises are often in a low-profit, high-risk environment, the order account period is getting longer and longer, the profit is getting lower and lower, the inventory is getting higher and higher, and the cash flow is getting tighter and tighter.

In the past, textile companies like to open up new customers, but now many textile people reflect that they only do business with old customers who know everything, and are afraid of crooks.

Even if there are some very high-quality lists, it is difficult to circulate in the market, and several fixed companies have been truncated. If there are really good profits, payment is very easy customers, and even consider whether the other party is a liar.

Fabrics lose room for price increases

Commodities to sell the price, pay attention to a poor information and scarcity, the textile industry as a day to eat industry, scarcity is often reflected in the aging.

Why did gallbladder catch fire last year? Because the weather suddenly cooled, clothing enterprises in the short term urgently need bile cloth, but bile cloth inventory is very concentrated, even if the bile cloth production is not difficult, the market idle capacity is also a lot, but within a few days of cooling, these production capacity can not immediately become cloth, so bile cloth produced scarcity at that time.

But this year the situation is completely different, the temperature has not dropped, but the bile cloth bosses have been under pressure because of the inventory.

In addition, with the rise of off-the-shelf fabrics, for conventional products, the market has long been fully stocked, unless suddenly there are some fabrics, such as the new Chinese style at the beginning of this year, some conventional demand has been unable to produce an imbalance between supply and demand.

Poor information is even more so, with the continuous popularization of the Internet, the poor information in the textile industry has been gradually erased, the price of a lot of cloth sent a circle of friends, brush shake Yin all know, there is no secret in the industry, naturally it is difficult to produce a premium.

How will the future market go?

According to the statistics of Longzhong Information, the first two weeks of November, the average production and sales of domestic polyester filament at 40% and 46%, continued to maintain a low level, which has some of the reasons for the recent weakness of polyester raw materials, but also weaving enterprises are not good at receiving orders.

From the perspective of orders, although it is said that before the inauguration of the new president of the United States next year, there is a certain expectation that domestic textiles and clothing will grab exports, and there is a certain expectation that the short-term market will turn better. However, the domestic textile and garment exports will still face a certain pressure, after January next year, some countries may take trade restrictions, the international trade environment is still more complex, which will produce a certain pressure on foreign trade exports. And with the development of the textile and garment industry chain in other overseas countries, such as Southeast Asia, it has also formed a squeeze on China's textile and garment export market.