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Pre-holiday sales continue to decline, textile enterprises are confident in production and sales

by:Chengyi     2021-03-15
It is understood that entering the end of January, some small textile and clothing enterprises in Henan, Jiangsu, Anhui and other places have stopped for holidays one after another, and some large and medium-sized cotton textile enterprises have also issued leave notices. A few enterprises still maintain a high operating rate and have not yet specified the holiday time. .   At present, the inquiries, purchases, and shipments of lint cotton in Xinjiang supervision warehouses have fallen sharply or even stagnated, and the enthusiasm of textile enterprises for purchasing Xinjiang cotton in inland warehouses, port bonded or customs clearance cotton has also cooled. First, the Spring Festival is approaching, and the work pressure of some cotton warehouses such as epidemic prevention and control, fire protection, and security inspections has risen. In addition to the shifting of employees, the inbound and outbound loading and unloading capabilities have declined; second, textile companies are generally busy with settlement of wages, bonuses, and payment of accessories and raw materials. , Utility bills, etc., cash flow expenditures are large, the order situation in the first and second quarters of 2021 is still not very clear (very cautious on large, medium and long-term orders), textile enterprises are not willing to hoard large amounts of raw materials and avoid rising cotton prices.   A medium-sized yarn factory in Jiangsu stated that, except for 50S and 60S cotton yarns, 80% of the orders for 40S and below cotton yarns are delivered before the Spring Festival. If the new crown epidemic prevention and control situation improves further during the Spring Festival holiday, and the domestic and foreign markets and news remain stable, the initial plan is to resume work and production before February 20. Even if the short-term orders for OE yarn and C16S-C40S are insufficient, it is not planned to delay the resumption of work. As there are fewer and fewer skilled and experienced skilled workers in spinning, if the start-up of production is delayed, resulting in a large loss of workers, the gain is not worth the loss. As of the Spring Festival, the cotton yarn inventory of the enterprise was relatively low, with only one week of output, and the enterprise also had a proper inventory plan.   At present, the new crown epidemic is still spreading more frequently. Stabilizing emotions, promoting employment, and boosting the economy are still top priorities. As a labor-intensive industry, cotton textile enterprises are obliged to do so. Since 2020, bank credit support has been strong and interest rates have been lowered more significantly than in previous years. Cotton textile enterprises have sufficient cash flow and strong anti-risk capabilities. From the survey, due to the increase in holidays for weaving factories and printing and dyeing factories in coastal areas such as Guangdong, Jiangsu, Zhejiang, and Shandong, and the closing of various textile markets, the shipment of cotton yarn in Shandong, Xinjiang, Henan and other places has been slowing down, and the inventory of finished products has generally rebounded slightly. . Textile enterprises are mostly optimistic about the cotton textile market in February and March 2021, believing that the global epidemic has seen an 'inflection point' due to the strong 'blockade' of various countries and the widespread vaccination of the new crown vaccine. Central banks of various countries continue to loosen monetary policies to stabilize the economy. The effect of promoting consumption and boosting the economy is gradually showing, and the textile and apparel market is expected to usher in opportunities for rebound and growth. Article Keywords:  Cotton Spinning Cotton Yarn Yarn Yarn Price
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