Wave goodbye to 2019, and we are about to usher in 2020. A new year is worth looking forward to, but the past year cannot be passed. 2019 can be said to be a difficult year for the textile industry. Because of this, it is more worthy of review and summary by the textile people.

Xiaobian heard the most emotional sentence of Bo's boss in 2019: I'm too difficult!

1

Weaving companies and chemical fiber companies are too difficult!

High stock of grey fabrics, less raw material requirements

The overcapacity of downstream grey fabrics is a huge challenge encountered by the textile industry this year. Excessive production capacity of grey fabrics directly leads to fierce competition among enterprises. In order to destock, some weaving bosses have repeatedly lowered prices "without a lower limit", which has caused the price of the entire grey fabrics market to fall sharply, and weaving manufacturers' profits have been severely compressed. And indirectly affected the sales of upstream raw material companies, weaving companies under high inventory pressure, had to reduce the operating rate, reducing the demand for raw materials. Weaving manufacturers are becoming more cautious about purchasing raw materials, and the annual stocking at the end of the year is obviously less than last year. Grey fabric companies and chemical fiber companies are dying, and 2019 will not be easy!

2

Fabric companies and printing and dyeing companies are too difficult!

Less orders for fabrics, printing and dyeing companies "not enough"

The weakening demand of the entire textile market has also greatly affected textile enterprises. As people's purchasing power for clothing declines, apparel companies' orders to reach fabric traders also decrease accordingly. The orders received by some traders this year have decreased by 50% compared with last year, and profits have fallen by about 30%. Similarly, the number of grey fabric dyeings received by printing and dyeing factories has also dropped a lot, causing the phenomenon of "unsatisfaction", and the days of full-load operation are gone. The grey cloth does not need to be lined up most of the time, and the shipment is smooth. Fabric traders and printing and dyeing factories are all damaged, and 2019 will not be easy!

3

Foreign trade companies are too difficult!

Sino-U.S. Trade friction is unstable and orders are blocked

The turbulent environment has also affected the entire textile industry. Since 2018, Sino-U.S. Trade frictions have gradually escalated. In 2019, Sino-U.S. Trade frictions have entered a white-hot stage. China and the United States have repeatedly negotiated on the issue of tariffs. The tariff policy has changed a lot, which has a great impact on the export of clothing to the United States. The proportion of the US's imports of textiles and clothing from China has fallen sharply, while the number of imports from India, Vietnam, Pakistan and other countries has increased significantly. The Sino-US trade friction has accelerated the transfer of textile and apparel orders to other countries, leading to a sharp decline in orders from foreign trade companies, which has affected the entire textile industry. It's not easy for textile companies in foreign trade in 2019!

4

Textile factory is too difficult!

Machinery and equipment are constantly updated and the cost is too high

This year, the profits of downstream textile companies, including finishing factories, have shrunk, in part because of the high cost. With the stricter environmental protection policies in recent years, manufacturers must update their machines and environmental protection equipment, and the prices of some environmental protection equipment want to be expensive. On the other hand, the market has higher and higher requirements for product quality and more and more product designs. The previous equipment has failed to meet the market demand, the old equipment is facing obsolescence, and the equipment maintenance costs are getting higher and higher. The equipment has been updated, and some companies have abandoned the expensive idea and can only make some products that they can survive. Therefore, no matter the equipment is not updated, the textile factory in 2019 will not be easy!

There are many reasons why textile people are too difficult in 2019, and I will not list them one by one. What concerns people more is that it will be so difficult in 2020? I will analyze this issue for everyone.

1

Grey fabric destocking is slow, but declines at the end of the year

First look at the problem of overcapacity. From the end of the year's weaving manufacturers' grey cloth inventory, the overcapacity has not been effectively alleviated. According to the data feedback from the sample companies monitored by China Silk Capital Network, the current grey cloth inventory is about 37 days, most of the year is more than 37 days, and most of the whole year of 2018 is not more than 30 days. It can be seen from the grey cloth inventory data that the inventory is still at a high level and the production capacity is still too high. Next year, there will be a problem of excess fabric capacity. Fortunately, production capacity is falling at the end of the year, and patience is needed. The road to inventory is difficult and long-term.

2

Next spring and summer orders are average, clothing purchasing power is not strong

People's purchasing power for clothing has not actually improved much. Especially in the warm winter of this year, the sales of down jackets have greatly decreased, and even some thick cotton jackets and other jackets have also suffered from slow sales. Next year's spring clothing, some clothing brands have already been new, but the sales volume is also average, and there are generally not many spring clothing orders that are returned to the downstream. The artificial silk fabrics, which have always been popular in spring and summer clothing, are also overshadowed. The quantity of grey fabrics is average, and there is no hot sign.

3

Sino-US trade friction eases at the end of the year and is expected to stabilize next year

As for the Sino-U.S. Trade frictions, recent good news has continued to spread, frictions have continued to decrease, and tariffs will also be stable, which is undoubtedly a great thing for textile companies. China's exports to the United States may increase, trade orders between the two countries increase, and textile foreign trade companies' orders are expected to pick up, meaning that their difficult days will be eased. But it can't be too early, the chances of recurrence of the relations between the two countries still exist.

Postscript

In general, Xiaobian believes that the days of next year's textile enterprises will not be too difficult, but it will not be too easy, and they need to work hard! The era of easy textile industry has passed, but the era of super potential in the textile industry has come. This road is long and uneven, and it takes textiles to step by step.

Source: Global Textile Network

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