Since the new crown epidemic occurred and continued to spread since the global textile production and orders continue to double down, the retail side of the turnover fell suddenly, may continue to longer-term downturn trend. Sharp weakness in the international market consumer demand for clothing has led directly to the product mix of China's textile and apparel exports. Although some European countries have gradually relaxed control policies a few days ago, the global supply chain has shown signs of recovery, but overall it seems that the negative effects of the impact on the industry chain is inevitable.

   2020 hastily passed the halfway point, into July, the textile industry into the traditional off-season, whether it is domestic demand or foreign trade, the textile industry chain pressure doubled, small and medium-sized enterprises or continue to be under pressure.

Domestic demand: prelude to off-season, companies under pressure

From the perspective of consumption habits, downstream replenishment timing, July and August will enter the off-season, the order is in a green state. Industry experts said that June to September may be a part of the small and medium-sized enterprises will face the pressure to reduce production, downtime, vacation or even closed.

Foreign trade: prelude to vacation, fewer orders

The European Union generally in July to September high temperature vacation, France, Italy, the Netherlands and other countries at least a month or so, and thus the market in July export orders are relatively small, only after August and September will increase again. Therefore, the downstream market in July is generally not optimistic, and the market will only take off in August if it is fast.

Production status: weak market, insufficient opening of the station

According to the cotton textile cluster weaving enterprises in the production of the survey to understand, since June, the cluster weaving market was weakening trend. As of the end of June, the cluster weaving enterprises average start rate of about 50%, weaving capacity utilization rate of less than 40%.

Most of the clusters said that the enterprise operation in June than in May did not see any improvement, by the epidemic and the traditional off-season and other factors such as the impact of the superposition of weak market demand, product inventories continue to increase. Lack of enterprise orders, capital pressure and other problems still exist. Enterprises to adjust production, reduce the opening of the station to maintain operations.

The off-season is coming: limited shipments, cut production to protect prices

From the present point of view, the first half of the textile season has basically passed, July or only in the hoarding mentality, there are only sporadic transactions volume, price upward pressure, the demand side is currently no significant improvement, the foreign single is still faced with the risk of recurring epidemics, shipments are more limited. Therefore, it is expected that in July-August in the off-season market, if the downstream demand has not improved significantly, enterprises in the future or to take the strategy of production reduction and price protection.

The market is expected to be slow in July, and the market will have to wait for a rebound.

The market in July, most textile people are still psychologically prepared. After all, according to history, the textile market, if there is a big market, generally occurring in 3-4, September-October, July-August generally less likely to happen in the big market, that is, under the off-season, the market was originally going to face the pressure of tired inventory, just this year's inventory pressure is too large, may be ahead of the number of 6 years have not been encountered in the market.

Therefore, the need for textile people to recognize their own position in the chaotic world, conscious of the limit under the inventory, rather than blind production, the funds are turned into inventory, to avoid the pressure of competition into a difficult situation.