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Industry News | Time: Jun 18 2020 1:47PM
Large-scale knitting and dyeing mills lack of production workers amid rising orders
 
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Knitting and dyeing mills in Guangdong emerge a production resumption boom 
On June 10, Shantou xinsanhe Textile Co., Ltd which is in Guangdong Chaonan printing and dyeing park has completed exploration, design, piling, infrastructure construction, decoration, equipment installation and commissioning. Qingyuan Chenli dyeing and Printing Co., Ltd. which locates in Qingyuanzhenyu printing and dyeing park also ushered in production resumption. It is reported that the three printing and dyeing parks in Guangdong Chaoshan are stepping up the installation of equipment and looking forward to the early resumption of production.

16 textile and garment mills in Cambodia have resumed production
Amid the easing lockdown measures across the globe, some mills have begun to return to work and receive orders for production.

According to Jianhuadaily, director general of the Preah Sihanouk labor and Vocational Training Bureau said on Jun 10, 38 mills in Sihanouk have applied for suspension of production during the pandemic, and 16 mills have reproduced so far.

Adidas, Nike and the other major brands have resumed placing orders
Amid further containment of COVID-19, major brands including Adidas and Nike have begun to resume ordering recently. The orders have shown signs of warming in Jun despite dull season.

Textile foreign trade orders pick up slightly from May
Recently, due to the easing lockdown measures across EU, there has been news of a recovery in the international market. Do foreign trade enterprises in China see orders? How about the textile and apparel export market? Judging from the recent data released in May, the current situation is mixed.

Since May, some countries have opened ports one after another, and international logistics has gradually recovered. At the same time, a few countries have also agreed to deliver goods which were delayed before. The foreign trade industry has finally broken the stagnation, and gradually started to improve.

From orders, many countries and regions began to relax the epidemic control measures and gradually eased the lockdown measures. The downstream grey fabric market has become lively, and domestic and foreign trade have witnessed actual orders. At present, various orders in Europe have slightly increased, the epidemic has little impact on Japanese and Korean orders, and the US economy is also recovering. The total export volume may depend on trade barriers. Bangladesh, Myanmar, Cambodia and Vietnam have also resumed production one after another. Among them, there are more than 7,600 apparel mills in Bangladesh, and about 3,000 have resumed production. 16 textiles and garments mills in Cambodia have resumed business.

The owner of a foreign trade company in Keqiao said that during the severe epidemic period in China, although most orders were postponed or cancelled, the customer's proofing was all underway in an orderly manner. Now that the epidemic gets better, the delayed orders return to normal.

Recently, a weaving company specializing in home textile products in Shaoxing enjoyed better orders, which were supplied to WalMart Inc. Due to large orders, the company has basically been out of stock recently. Another trader who also produces home textiles and apparel fabrics has recently received orders for home textiles sold to the United States. Although the volume was not large, it was still larger than that in earlier stage.

The international market showed signs of a turnaround, which strengthened confidence to printing and dyeing mills. In general, foreign trade orders have gradually improved relative to the domestic trade market, but the recovery was slow.

The orders received by various companies vary, but overall foreign trade business has indeed improved since May. Although most companies still report that orders have shrunk severely year-on-year, and sales ratio is still difficult to reach 100%, some companies are on the move in a positive direction.

Although the market is slowly picking up, it is not optimistic in terms of price. The reason is that the weak economy and demand hit hard by the epidemic have caused the global textile and apparel industry to suffer a critique. Enterprises have gone broke, and the demand has been difficult to improve. The epidemic has hit an unprecedented history. The prices of textile and apparel trade dropped, and the public orders were still insufficient.

It was traditional dull season in Jul and Aug, and the 2020 H2 foreign trade orders are mostly placed in May and Jun, when the orders cancelled or delayed by the epidemic factors or started to improve intensively. For the exports in Jun, textile and apparel exports are expected to inch up month-on-month. Although affected by the pandemic, new orders in Jun may increase slowly, and the inflection point may appear in the third quarter when the epidemic is relatively stable.

Source: Knitting Industries
[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
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