[Weaving Cluster] Weak Market And Continued Pressure On Enterprises

Weak market and insufficient opening

According to the survey of weaving production in cotton textile cluster, the market of cluster weaving has been weakening since June. By the end of June, the average operating rate of cluster weaving enterprises was around 50%, and the utilization rate of weaving capacity was below 40%.

Most clusters indicated that the operation of enterprises in June was no better than that in May, and affected by the epidemic and the arrival of the traditional off-season. The market demand was weak, and the stock of products continued to increase. Problems such as lack of order and capital pressure still exist. Enterprises adjust production, reduce start-up and maintain operation.

Continued pressure on Enterprises

According to the market, the order of pure cotton fabric market is relatively stable, the market demand for colored fabrics and denim is rather weak, orders are relatively large year-on-year decline, and the profit margins of enterprises are further compressed.

From the domestic market, affected by foreign epidemic situation, exports to domestic enterprises increased significantly, domestic sales orders intensified, and sales of a weaving cluster in June decreased by more than 20% compared with May. Enterprises use the network platform to explore online sales and develop new marketing models. The governments of various clusters also take measures to help enterprises run smoothly.

From the export market, export orders have not seen a marked improvement as a whole. The number of orders and goods exported by individual enterprises in Africa has increased significantly compared with that in May. Affected by the epidemic, the African market orders basically stagnate, the current demand is increasing, and the situation has improved.

(the above contents and data are from a sample survey of cluster weaving enterprises for reference only).