Weak market and insufficient opening
According to the survey of weaving enterprises in cotton textile cluster, the cluster weaving market has been weakening since June. By the end of June, the average operating rate of cluster weaving enterprises is about 50%, and the utilization rate of weaving capacity is less than 40%.
Most clusters said that the operation of enterprises in June was not better than that in May. Due to the superimposed influence of epidemic situation and the arrival of traditional off-season, market demand was weak and product inventory continued to increase. There are still some problems, such as the lack of orders and the pressure of funds. The enterprise adjusts the production, reduces the opening, maintains the operation.
Enterprises continue to bear pressure
From the market point of view, the market order of pure cotton grey fabric is relatively stable; the market demand of color woven fabric and denim fabric is relatively weak, and the order decline is relatively large year-on-year, and the enterprise reduces the sales price, and the profit space is further compressed.
From the domestic market point of view, affected by the foreign epidemic situation, export to domestic enterprises increased significantly, and competition for domestic sales orders intensified. The sales of a weaving cluster in June decreased by more than 20% compared with that in May. Enterprises use the network platform to explore online sales and develop new marketing models; the cluster governments also take measures to help enterprises run smoothly.
From the perspective of export market, the overall export orders have not improved significantly; for some enterprises exporting to Africa, the orders and goods volume have increased significantly compared with May. Affected by the epidemic situation in the early stage, orders in the African market have basically stagnated, and the current demand has increased, and the situation has improved.
