Terminal demand is sluggish, July textile industry chain or everywhere "high inventory"

Xiao Bian: Boss, what products are selling well recently?

Boss: No! Probably in addition to non-woven fabrics, the market is not what hot products.

Entering June, the off-season atmosphere has deepened, the market has entered the status quo of "a pool of stagnant water", lack of bright product support, and poor market transaction performance. Especially in terms of conventional products, the gray cloth inventory of weaving manufacturers has reached the high level in recent years.

According to the sample enterprises tested by China Silk Capital Network, the gray cloth inventory in Shengze area has risen to about 43-44 days, about 2-3 days higher than the same period last year, about 19 days higher than the same period in 2018, and about 16 days higher than the same period in 2017.

Weaving enterprises inventory is difficult to go, on the one hand, the reason comes from the low price of polyester in the upstream, it is difficult to drive the gray cloth to go; on the other hand, the reason comes from the sluggish terminal demand.

Polyester filament "floor price", can not sell!

Since June, international crude oil has risen, driving up the price of polyester raw materials, thus stimulating the price of polyester. But in recent days, polyester prices began to fall. Throughout the first half of this year, the overall price of polyester is still declining, and the price of each product is about 20% lower than that of the beginning of the year. Compared with the same period last year, it is even worse. Specifically, FDY products have dropped by nearly 28% compared with the same period last year, POY products have dropped by more than 30% compared with the same period last year, and DTY products have also dropped by about 26% compared with the same period last year.

According to the experience of previous years, the increase in the price of polyester can drive some gray cloth to go, but now the price of polyester itself is at a low level, and the increase cannot go up, which is even more unspeakable for the benefit of gray cloth.

In terms of production and marketing, generally speaking, manufacturers will stock up more or less before the holiday, but before the Dragon Boat Festival holiday, manufacturers have poor enthusiasm for replenishment. In addition to the hot sales of POY products driven by the promotion of polyester manufacturers, the production and sales of other products are average, with production and sales exceeding 100 prices for only one day, which can even be described as "barely.

Terminal clothing "in hot water", no demand!

Recently, the clothing brand announced the sales performance of the first quarter, the data can not help but make people sad.

Adidas: First-quarter operating profit fell 93% to 65 million euros; sales fell 19% to 4.753 billion euros (about $5.32 billion).

Puma; Sales fell 1.3 percent to 1.3 billion euros (about $1.4 billion) in the first quarter, adjusted for exchange rates; operating profit fell 50 percent to 71.2 million euros.

The TJX Companies, Inc: Net sales of $4.409 billion in the first quarter, compared with $9.278 billion in the same period last year. Net loss of $0.887 billion for the quarter.

Zara parent company Inditex Group: sales fell to 3.303 billion euros (about $3.7 billion) in the first quarter, with an operating loss of 0.508 billion euros and a net loss of 0.409 billion euros.

More data show that Nike in March-May, which coincided with the peak of the epidemic in Europe and the United States, operating income fell 4% year-on-year, quarterly net loss of $0.79 billion.

Foreign epidemics are still spreading, and the serious losses of garment enterprises caused by the epidemic have not stopped, and are still continuing......

Large clothing brands are still struggling to avoid losses under the impact of the epidemic, not to mention other apparel companies. At present, the domestic epidemic has been basically controlled, but the end demand is still difficult to recover. For the textile industry, garment enterprises continue to lose money and accumulate inventory, and the demand for fabrics and gray fabrics is naturally shrinking sharply. Last year, we have been saying that the order mode of clothing enterprises has changed to "small batch, multi batch". However, according to the situation this year, clothing enterprises are also experiencing unprecedented situation, and even it is difficult to protect themselves, so "small batch" may be unsustainable.

On June 24, the International Monetary Fund (IMF) released the latest issue of the "Global Economic Outlook Report". The IMF predicts that the global economy will shrink by 4.9 this year, while the data released in April was a contraction of 3%, down 1.9 percentage points. Economy and demand in the impact of the epidemic devastated, coupled with the upstream polyester is difficult to pull the goods market, in July, weaving manufacturers will fall into the difficult situation of going to the warehouse, continued tired inventory and part of the production reduction or will become the next main tone.