Many Countries Shut Down Their Cities, And Textile Foreign Trade Enterprises Encountered A "Wave Of Refunds" In The Traditional Peak Season

Since the outbreak of COVID-19 in China, the economic trade, production and processing have been pressed the "pause" button. Affected by the delay of commencement and the outward transfer of some orders, the pressure on the textile industry has doubled. With the slow start of the resumption of work in the middle and late February, the market slowly improved. However, since the outbreak of the epidemic abroad, and triggered a sharp drop in the financial market, raw materials fell sharply and orders dropped sharply, the market transactions turned bad again, and some textile enterprises reported that the traditional peak season in March and April would become the most difficult time.

The outbreak of the epidemic increases the uncertainty of the textile market

According to the real-time statistics of WHO, 294110 cases of COVID-19 were confirmed globally and 12944 cases died as of 0:59 on March 23, Beijing time. At present, 186 countries and regions around the world have confirmed cases of COVID-19, and more than 210000 cases of COVID-19 have been confirmed outside China.

On March 22 local time, Italian, German, French and other European governments announced new measures to deal with the rapidly spreading epidemic.

Italy

As of 18:00 on March 22 local time, 5560 new confirmed cases had been confirmed in Italy within 24 hours, 59138 cases had been confirmed nationwide, and 5476 cases had died.

The Italian Prime Minister signed a decree to stop unnecessary production activities nationwide from the 23rd, and the decree is valid until April 3. The validity of the prevention and control laws and regulations previously passed by the government, such as restrictions on traffic and suspension of commercial activities, was extended to April 3.

Germany

German Chancellor Angela Merkel announced on the evening of the 22nd local time that Germany will not implement the nationwide "foot ban" for the time being, but will prohibit gathering activities of more than two people, and offenders will be fined (except for family members who live together).

After the press conference, the spokesman of the German federal government said that German Chancellor Merkel would be quarantined at home because the doctor who had treated her tested positive for COVID-19.

France

On the 22nd local time, the French Ministry of Health said that there were 1559 newly confirmed cases in France, with a total of 16018 confirmed cases and 674 deaths.

The French Senate and the National Assembly have passed bills successively, stipulating that France will establish a public health emergency for a period of two months from the date of the bill's entry into force. During this period, the French government can restrict the travel and mobility of personnel, requisition necessary materials and services, and provide economic assistance to enterprises and individuals by issuing administrative decrees.

britain

As of 9:00 on March 22 local time, the cumulative number of confirmed cases of COVID-19 in the UK reached 5683, with 281 deaths.

The British National Medical Service System plans to send advice to 1.5 million high-risk people nationwide, including those suffering from serious respiratory diseases and having received organ transplants, by letter and SMS next week, not to go out within 12 weeks to protect their personal health.

Spain

As of 11:00 on March 22 local time, the cumulative number of confirmed cases of COVID-19 in Spain had increased to 28572, with 1720 deaths, 3646 more than the same period on March 21.

Spain declared a state of emergency for another 15 days. Spain had previously declared a state of emergency on March 14 due to the COVID-19 epidemic.

Greece

The Ministry of Health of Greece announced on the afternoon of March 22 local time that there were 94 newly confirmed cases in Greece, 624 confirmed cases nationwide, and 15 deaths. The average age of the dead was 77 years old.

Greek Prime Minister Mizotakis announced that from 6:00 a.m. on the 23rd, the measures of comprehensive closure and nationwide foot ban will be implemented nationwide.

In addition, the epidemic situation in the United States is not optimistic. According to the latest data released by Johns Hopkins University in real time, as of 12:53 a.m. on the 23rd Eastern Time, there were 35211 confirmed cases and 471 deaths of COVID-19 in the United States. According to American media reports, as many places have issued "city closure orders", nearly 1/3 of Americans have received orders to stay at home to slow the spread of the epidemic.

Europe and the United States are important markets for Chinese textiles and clothing. Under the influence of the epidemic, many countries have taken emergency measures to seal cities and countries, close stores and shut down factories, and some economic and trade activities have stalled, which has a certain impact on textile and clothing exports.

At the time of the spread of COVID-19 in Europe and the United States, many luxury goods companies chose to suspend production temporarily. Following Hermes and the brand Gucci of Kaiyun Group, Chanel also decided to suspend production in the short term and close its factories in France, Switzerland and Italy in the next two weeks. Prior to that, Chanel also cancelled the early spring holiday fashion show scheduled to be held in Capri Island in May. Affected by the epidemic, Gucci, Versace, Masmara, Hermes and other brands also cancelled the 2021 early spring holiday show.

The long-term positive trend of foreign trade development has not changed

It is the domestic textile industry that has been hit hardest by the overseas epidemic. Recently, the whole international crude oil market has fluctuated violently, and the global economic situation is not optimistic. The demand for textile fabrics is limited, and the whole textile and clothing market is generally lack of confidence in the future market, so orders are placed cautiously and conservatively.

At the beginning of the resumption of work, the whole textile market showed a pleasant peak season because of the release of the backlog of orders before the year. However, with the obvious follow-up of subsequent orders and the continuous reduction and cancellation of orders, the durability of this wave of market began to be greatly reduced. Now, those textile factories specializing in export receive a large number of overseas cancellation orders every day, increasing market uncertainty.

According to a salesman of a garment foreign trade enterprise, they always purchase fabrics from China and export them to garment processing plants in Vietnam, and then export the ready-made garments to the European market. In other words, their end customers are actually clothing enterprises from Europe and the United States, and many of their major customers are Italian clothing brands. However, as the epidemic situation in Europe continues to ferment, many of their orders have been cancelled, especially in Italy, which has been closed down. In addition, some fashion exhibitions and fashion shows have to be postponed, and those clothing brands that place orders under the guidance of fashion trends are bound to postpone or reduce the number of orders.

The decrease of orders will not affect the long-term development of foreign trade

The government pays close attention to the problems faced by textile foreign trade enterprises.

On March 19, the Ministry of Commerce held an online news conference and said: The COVID-19 epidemic is spreading around the world. There have been confirmed cases in more than 160 countries and regions. Some countries' production, consumption and other fields have been impacted, trade activities have decreased, and the downward pressure on the global economy has increased. In the future, foreign trade enterprises may encounter weak external demand Order reduction and other issues.

However, the General Administration of Customs has also pointed out in its previous announcement that China's foreign trade development is resilient, and enterprises have strong adaptability and market development capabilities. With the positive results of epidemic prevention and control and the gradual implementation of various policies and measures, the pace of resumption of production of foreign trade enterprises has accelerated, and market confidence has steadily recovered. The impact of the epidemic on imports and exports is temporary and phased, and the long-term trend of foreign trade development has not changed.

Source | Economic Daily Cloth Factory Chemical Fiber Headline Global Textile Network