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[Foreign trade orders have plummeted, and companies are struggling! When is the low season heading?]
Release date:[2020/6/2] Read a total of[524]time

"Our company is making some high-end fabrics such as silk, rayon, acetate, etc., and basically all are foreign trade exports, the exporting country is mainly the United States. In the past years, our annual sales can be more than 100 million yuan, but this year Because the pneumonia epidemic is severe and the United States is again the hardest hit area, our orders have fallen by more than 90%," said a trader official. In addition, their company has a large number of employees, and the production cost of the company is relatively high. However, it is difficult to guarantee the normal production and operation of the current turnover. At present, they are completely supporting. As to how long they can last, everyone has little confidence.


With such a large reduction in orders, companies will inevitably be at a loss. Of course, enterprises in this state are not the only ones, and the number is not small, especially for textile enterprises that specialize in foreign trade or have a large proportion of foreign trade.


According to the data analysis of the National Bureau of Statistics, the number of loss-making enterprises in our textile industry has been relatively stable in the past two years, about 3,000. However, the number of loss-making textile companies has rapidly increased this year, and it reached about 6,500 in February and March. Although the number of losses decreased slightly in April, it has not returned to the normal number.


Loss seems to be a problem that is difficult for our textile industry to avoid. How to avoid losses or reduce losses is now the top priority of all textile companies.


This year, the textile market was affected by the epidemic and is in an unprecedented off-season. But fortunately, spurred by the shrinking demand and price wars in oil-producing countries, oil prices have been historically low for a long time. Affected by this, the prices of textile and chemical fiber raw materials also make people feel what is meant by "endless."


Although there is no demand for orders, the price of raw materials is low enough, and chemical fiber fabrics are also easy to store. Therefore, the vast majority of textile companies faced with weak market conditions, the first thought is not to reduce the operating rate and reduce costs, but to save raw materials with the help of lower raw material costs, waiting for the market to improve.


But not all fabrics are suitable for large-scale storage, especially high-end and unconventional fabrics. Their general demand is not large at the same time. At the same time, the storage requirements are high, and natural production costs will be increased. It is difficult to quickly sell after the epidemic. ,Return of funds. Those conventional and ordinary fabrics do not have these problems. They have a large demand and a wide customer base, which is suitable for quickly revitalizing the capital chain after the epidemic. As a result, there are some factories, even some grey fabric factories that produce high-end fabrics, and they use high-end equipment to produce low-end fabrics.


However, this off-season textile season is a bit beyond everyone's expectations, the duration is too long, and there is no sign of improvement. For textile enterprises, two or three months of high-load production and stocking are acceptable to most enterprises, but if they are in this state for half a year or even a year, it is a bit difficult. So they adjusted their strategy again, from waiting for customers to place orders in the past, to selling to customers, especially old customers who have been doing it all year round. Because they already trust each other, and at the same time, these old customers who always take cloth must understand that the current gray cloth price is very low.


According to a trader, they have made several orders for fabrics all year round, but the colors are different and the types of fabrics have remained the same. The grey cloth factory that supplied them has been contacting them recently, so that they can take advantage of the current low grey cloth prices to prepare for stocking. Now the price of raw materials is low, and the price of fabrics is low, which is known to all textile people. They are indeed a little bit tempted, and are planning to prepare tens of thousands of meters of grey cloth, and waiting for the market to improve can expand their profit margins.


Many textile companies have encountered the collapse of orders and large-scale loss operations, and will continue to ferment with the epidemic. Before the economic recovery in Europe and the United States, it was difficult for foreign trade orders to meet the needs of all textile workers. Especially recently, the textile market has turned weak again. Although it is summer now, textile people are about to experience the bitter "winter".


Haian County Qinfeng Chemical Fiber Co., Ltd. ranks among the high-quality enterprises in the industry with its single-stream professional technical strength, front-end quality inspection system and perfect quality inspection system, specializing in the production of pp staple fiber, polypropylene staple fiberpolyester staple fiber, and functional polypropylene staple fiber Fiberfunctional polyester staple fiber, etc.


If you want to know more product information, please contact: Mr. Qian 13962787918, 13813743991 Website: http://www.glory-fiber.com/


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