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With the increasingly severe global epidemic situation and the prolonged business shutdown of developed countries, the downward pressure on orders from Chinese textile companies, especially export orders, continues to increase. According to weekly reports and cluster survey data, 85.7% of companies and 89.3% of industrial clusters reported insufficient orders this week. Weekly data show that 57.1% of the companies surveyed this week reported encountering customer cancellations, an increase of 6.3 percentage points from the survey a week ago.
Among the 166 start-up enterprises that filled in the order status this week, the proportion of companies with orders reaching 80% of the normal situation was 31.3%, which was 2.4 percentage points lower than the survey ratio one week ago; the proportion of enterprises with orders less than 50% of the normal situation was 27.7 %, An increase of 4.5 percentage points from a week ago. The shortage of export orders is more prominent, and the proportion of enterprises whose export orders are less than 50% of the normal situation is as high as 70.2%, which is 9 percentage points higher than a week ago.
The pressure of insufficient end market demand and the decline in export orders has been transmitted to the entire industry chain. Textile companies are generally facing greater operating pressure. The capacity utilization rate that has been steadily increasing since the resumption of production has gradually declined. According to the survey data of the weekly report, among the 166 enterprises whose production capacity has been effectively resumed, 55.4% of the enterprises' capacity utilization rate reached 80%, which was 2 percentage points lower than the survey rate a week ago; 9%, which is basically the same as the survey result a week ago. According to industry cluster survey data, 42.8% of the cluster's capacity utilization rate was below 80% before the epidemic this week.
It is understood that due to the epidemic situation, market demand has fallen sharply. At present, many companies can only maintain short-term construction orders in hand, and it is expected that the capacity utilization level of the textile industry will face further decline in the next two months.
The impact of the epidemic will continue for a long time, and the lack of demand is the main contradiction. It is recommended that companies actively explore low-speed operations while actively exploring market opportunities, and steadily overcome difficult times.
Affected by insufficient demand and the decline in production and sales, many companies have recently experienced inventory backlogs, and the pressure on capital turnover has become prominent. Due to the need to recover capital or lack of confidence in the market prospects, many companies ship at low prices, and the market prices of textile raw materials and products continue to fall, further squeezing revenue. Insufficient orders and shortage of funds are the current practical problems that companies reflect more.
China Textile Federation submitted the dynamic information on the production and operation of textile enterprises to the relevant government departments, feedback on the outstanding difficulties faced by the enterprise, and once again emphasized the policies of strengthening financial support, reducing the burden of the enterprise, starting domestic consumption as soon as possible, and supporting export enterprises to overcome difficulties Appeal.
At present, the situation of overseas epidemic prevention and control is still grim. The lack of external demand and lack of orders caused by the epidemic will continue for a long time. Although China's epidemic prevention and control situation is steadily improving, the domestic demand market has not experienced rebound growth. On the one hand, the main reason is that out of the need for epidemic prevention, domestic commercial activities have not yet fully returned to normal, and the decrease in social activities also affects the consumer demand for textile and apparel products. On the other hand, the elasticity of demand for apparel commodities is higher than that for food and daily necessities. Under the current pressure of the economic and employment situation, textile and apparel products have become the object of consumer spending compression. The scale of China's export industry chain is relatively large, and there are obvious differences in the domestic and foreign export industry chains. The domestic demand market has insufficient growth momentum, which further increases the difficulty for export enterprises to resell the domestic demand market. It is recommended that while actively exploring market opportunities, the company aims to steadily overcome difficult times, make prudent business decisions, strengthen internal control, and prevent and control capital chain risks. At the same time, it is recommended to pay full attention to the support measures issued by local governments and financial institutions at all levels, and actively strive for policy support.
The polypropylene BCF yarns produced by Nantong Linjia Fiber Products Co., Ltd. are mainly used for: polypropylene BCF yarn for carpet, polypropylene BCF yarn for decorative cloth, polypropylene BCF yarn for curtain fabric, and polypropylene BCF yarn for sanitary ware.