The Spread Of Foreign Trade Clothing Industry Is The Hardest Hit Area

 

According to reports from various industries, the epidemic is spreading rapidly all over the world, which has made a significant impact on foreign trade enterprises and related industries which rely on the European and American markets. Among them, the clothing foreign trade industry is also one of the hardest hit areas. Affected by the new crown pneumonia epidemic, many well-known fast fading clothing brands in Europe and America have taken many measures such as closing stores around the world, and sales have been greatly affected.

 

At present, most of the textile enterprises are producing on a regular basis, similar to the description of the outside world, but they are not very pessimistic. A textile company in Jiangsu has said that there are still more than 10 days' orders. If no subsequent orders are received, the production reduction measures will be taken. The production of enterprises is in a state of loss, mainly due to the high price of cotton purchased before the festival, resulting in high production costs. Worried about future orders, after all, foreign consumption led to a sharp decline in consumption.

 

It is understood that a large number of high priced pre purchase cotton raw materials is the biggest crisis encountered by enterprises. Because before the festival, domestic textile enterprises have sufficient orders. In order to ensure the completion of orders, purchase large quantities of cotton and prepare for full production after the festival, the result is that the black swan has suffered from the epidemic situation, and cotton prices have gone through the flow. Cash flow has been challenged.

 

According to the statistics of relevant state departments, the rate of resumption of industrial enterprises in China is stable. As of March 28th, the average rate of industrial enterprises in China was 98.6%, the average rate of duplicate workers was 89.9%, the rate of resumption of SMEs was 76%, and the average daily increase was 1 percentage points since March.

 

A textile manufacturer in Henan said that the production is basically normal now. A considerable number of enterprises are arranging pre production orders, and the drop in post orders is expected. Despite the turning point in the European epidemic, orders may continue to fall sharply from 4 to May, which will have a greater impact on enterprises. At present, the production of enterprises has not been affected, if the subsequent orders can not be continued, we will consider reducing production. According to their understanding of the situation, the downstream customers cancel the order situation is not much, postponed delivery is more common.

 

For spinning enterprises, it is now necessary to prevent the sharp reduction in orders and reduce the prices of downstream factories from 4 to May. At present, the price of cotton yarn is basically stable, and the drop is far less than that of cotton. Downstream enterprises may reduce the price of yarn by pressing the spinning enterprises on the basis of the reduction of orders. Under the above double pressure, the possibility of cotton price descending is still greater.