In The First Half Of The Year, Textile Enterprises Were Wounded And Moved Forward. Is There Any Hope For The Market In The Second Half Of The Year?

According to Ali judicial auction website, Zhejiang Longxin Textile Co., Ltd., a textile company in Zhejiang Province, auctioned at a starting price of 35030000 yuan at the beginning of this month, but failed to sell after 24 hours on the shelves

According to public information, Zhejiang Longxin Textile Co., Ltd. was established in 2009 with a registered capital of 50 million yuan. It is an enterprise mainly engaged in the production of medium and high-grade clothing fabrics such as white cloth and denim imitation. The company has 64 Japanese Toyota air-jet looms, 96 Italian schumet air-jet looms, and 3 Sullair air compressors. It is also an old brand enterprise in the local area 。

Although there is no online announcement on why the company went bankrupt, the continued poor market this year is indeed the "last straw" to crush many enterprises. In the first half of the year, Taobao's bankruptcy was not affected by the weak economic conditions of Taobao's textile industry.

What was the textile market experience in the first half of the year?

Epidemic situation or epidemic situation!

The outbreak of new crown pneumonia in 2020 has a significant impact on global economic activities. The domestic epidemic began to break out in early February and was effectively controlled in early March. After March, the domestic market economic activities gradually began to recover. In May, the domestic market was once warmer. However, the outbreak of overseas epidemic started in mid March. Many countries took blockade measures and "disappeared" outside the market overnight. In May, countries began to restart their economy. However, due to the recent outbreak, the speed of issuing foreign trade orders slowed down again.

At present, from the global epidemic situation, the epidemic situation in America, such as the United States, Brazil and other countries is still relatively serious, the epidemic situation in Europe is gradually slowing down, and the epidemic situation in India can be described as a "time bomb". Generally speaking, due to the impact of the epidemic situation in the foreign trade market in the whole first half of the year, the demand for fabrics dropped sharply.  

The "seven points" of "fabric" are also needed in the "domestic market". With the domestic market into the seasonal sales off-season, the impact of the lack of foreign single on the enterprise is also growing.  

"Recently, we've only been running machines for a few and a half months since we've been short of orders." A knitting fabric boss Wang said. In fact, Mr. Wang's knitting fabric company has more than 20 circular machines, and the sales volume in previous years are relatively stable.

In his eyes, both domestic and foreign customers, orders will continue to be issued, so there are few holidays throughout the year. However, this year, the situation is different. Since the construction started in March, customers' orders in the United States, Japan and other places have "disappeared". However, before June, the company's domestic sales orders were relatively stable, and more than 400 tons of fabrics were produced in more than two months. However, in the late June, the market turned sharply downward, and Mr. Wang delivered less and less goods every day. In July, only a few tons of goods were delivered a week, and the factory was open From more than 20 to 15 to 10 It has been reduced to four at present.

"This year, one of our American customers did not place an order for one meter. Recently, I have also communicated with customers that their own orders have shrunk seriously. One customer said that the order volume has shrunk by 90%, and my order is dead. I really can't hold on. I have to prepare for a holiday! "

In fact, Mr. Wang's experience is also the experience of many textile owners this year. At present, the operation of market shutdown and production reduction has started gradually.

Is there any hope for the market in the second half of the year?

Many textile owners said that after the recent market into the off-season, inventory and capital pressure doubled, on the one hand, the stock accumulated in the weaving mill continued to rise, and it was difficult to realize; on the other hand, due to the continuous decline of raw materials and frequent price reduction in the downstream, resulting in low prices of high woven stocks and thin profits, which made it more difficult for enterprises to operate, and led to the gradual opening of measures to reduce production and stop production Give.

In a recent survey conducted by China silk capital, nearly 200 textile people participated in the survey. More than half of the voters believed that the market would continue to weaken, and only 15% of them were optimistic about the future market

Although the International Monetary Fund (IMF) is predicting that the global economy will shrink gradually in the second half of 2020, it will be better to control the global economic situation according to the IMF research. It is difficult to ease the situation of overcapacity and capital shortage in the whole market in the short term.

At present, it is the era of "more monks and less candidates". In the cruel competition, some enterprises have to face the risk of being eliminated. However, in the recent interim performance forecast of Listed Companies in the industry, we also see some highlights

Rongsheng Petrochemical's recent financial report shows that in the first half of 2020, its net profit increased by 196% - 221% year-on-year;

Another polyester leading enterprise Hengyi Petrochemical also increased its net profit by 82% in the first quarter;

According to the half year report of taipingniao clothing in 2020, the company's operating revenue reached 3.216 billion yuan, a year-on-year increase of 3.09%, and the net profit attributable to the shareholders of the parent company was 120 million yuan.

It can be seen that although the market environment is bad, enterprises can either integrate the whole industry chain, reduce the cost of intermediate links to obtain the maximum profit, or through the layout of online and offline development, to increase sales channels, showing their strong anti risk ability.

Xiaobian would like to say that in the second half of 2020, the whole industrial chain is still in the de stocking stage, and weaving manufacturers will face the problem of inventory digestion. Enterprises need to balance the relationship between their own capital and inventory, and wait for the end of the global epidemic, and the demand will be substantially restored, so that the bargaining power can return to their hands. At present, it is in the "cyclical trough" of the industry, and enterprises have to go through tough times. But the second half of the year can also be said to be a good time for layout. As long as enterprises find suitable products, there will be a certain outbreak of demand.