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Why Textile Orders Are Few?

2011/7/1 15:51:00 84

Since March this year, cotton prices have dropped at a high level.

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The momentum of sales has also stopped abruptly. With the passage of time, textile operations are running low recently, and there are few orders in the downstream.

First, excess capacity in cotton textile production.

In 2010, the cotton textile industry was very proud. The small and medium-sized enterprises that had closed their doors were reunited.

Textile production capacity

It has also been restored to a higher level in a relatively short period of time.

However, since 2007, the growth of cotton textile exports has been declining steadily, the production capacity should have contracted steadily, but influenced by the economic stimulus policy after 2008, the increase in the amount of money has prompted the small and medium-sized textile enterprises to begin to reproduce in succession. The overcapacity expansion of the production capacity will inevitably lead to the excess capacity at this moment, and the competition in the textile industry is fierce.

In recent months, the global economy has slowed down, and downstream consumption capacity has declined. Raw material demand is no longer comparable with that of last year, and orders have naturally decreased.

The two is the sharp fluctuations in cotton prices affecting downstream orders.

In June 28th, the national cotton price B index, representing the average price of domestic 328 grade cotton, was 24306 yuan / ton, down by 6916 yuan / ton from 31222 yuan / ton in March 10th, or 22%, while Zheng cotton's September contract reached 33%. In June 29th, the lowest level was 23390 yuan / ton, which closed at 23695 yuan / ton.

Under the great fluctuation of cotton prices, cotton textile enterprises are in a state of panic and cautiously cautious. Many cotton textile enterprises in Jiangsu, Zhejiang, Shandong and Hebei have eased their pressure by stopping production and limiting production.

The three is the pressure of capital.

High value cotton

Cotton yarn

Inventory occupies a large amount of capital, and the product is unsalable and aggravates the tight financial situation. Coupled with the tight policy environment, the textile industry's capital chain is particularly strained, and some enterprises appear to be afraid to pick up the situation.

A sample survey of enterprises in Wenzhou showed that 42.9% of the enterprises with tight capital account at present.

Not only that, the textile industry is also facing the pressure of RMB appreciation, textile and garment export tax rebates or downgrading, shortage of labor and other pressures. In the next few days, the demand is very difficult to release.

Later, we need to pay attention to the macro environment at home and abroad, the clothing in autumn and winter and the holiday orders at home and abroad.