Shanghai International Textile Supply Chain Industry Expo 2019 was held recently, which mainly involved digital printing, dyes, additives, digital printing machinery and intelligent apparel making management. There are market situations for reference.
1. Insufficient orders for printing and dyes and chemicals mills
Amid weak end-users demand, overall orders of the industry chain is limited. Some printing and dyeing mills in Shaoxing Binhai Printing and Dyeing Industrial Park reflected that orders in Mar 2019 were significantly less than that in same period of last year. And affected by an explosion in the Chenjiagang Chemical Park in Xiangshui County on Mar 21, cost of printing and dyeing mills went higher, and the profit of orders dropped accordingly. While orders in early-Jun were higher than that in May, and there was holidays in Jul. Therefore, printing and dyeing mills hold pessimistic mood towards the market outlook.
2. Due to insufficient orders from printing and dyeing mills, purchase frequency of dye decreases
Although dye price soared in Mar-Apr, in the case of declining demand, the dye price lacked support and gradually moved down. At the same time, large-scaled dye mills are actively developing new products aimed at improving core competitiveness of products in the market due to persistence of environmental protection policies.
3. Transfer of domestic apparel orders will continue
Rise of textile industry in Southeast Asian countries and other factors led to transfer of some domestic orders. However, amid the fact that there is still a certain gap between the textile industry in Southeast Asia and domestic textiles, handling orders in Southeast Asia is relatively simple, and it is still unable to undertake China high-quality apparel orders. However, supported by local government for the textile industry, the textile industry in Southeast Asia will continue to develop and undertake more apparel orders.
4. Smart management may witness a very promising future
Due to gradual disappearance of China demographic dividend and the textile industry in Southeast Asia, upgrading of apparel industry is imperative. Therefore, apparel management emerges as the times require. Proven that apparel mills can save 10%-30% in cost after adopting intelligent systems, but they still lack cost advantages compared with Vietnamese apparel mills. Therefore, in line with continuous transformation of China apparel industry, intelligent management will become more and more perfect, and the support for China apparel industry will continue to improve.
On the whole, end-users demand in Jul will be hard to boost, the market will continue to be plain, and upstream yarn and grey fabric destocking pressure will still exist. In the long run, transformation and upgrading of apparel industry is imperative. Intelligent management is a key way for apparel industry. Therefore, China textile and apparel industry will have a long way to go.
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