The industry has always believed that Jiangsu’s double control and production limit suspension is the king of this round of market. In fact, as the country’s dual control and production limit measures are intensified, there are varying degrees of reports not only in Jiangsu, but also in Fujian, Guangdong, Anhui and other places. The production restriction situation, especially the recent news about “All high-energy-consuming enterprises in Keqiao, Shaoxing will be shut down before the National Day” in Zhejiang, which is also a major textile printing and dyeing province, quickly hit the sensitive nerves of the market.
However, there seems to be more than just Wang Zha. On the 23rd, a piece of news circulated in the market It is said that news from textile mills about normalized production restriction registration forms until the end of the year has once again made the market uneasy! The notice shows that in accordance with the requirements of dual control work, orderly power consumption will be carried out from September to the end of the year. According to the power outage situation in the notice, the company will implement a limit of 5 on and 5 off.
Although it has entered the traditional peak season of “Golden Nine and Silver Ten”, the continuous increase in “dual control” and the changes in downstream production have made the textile market look grim. Will the “dual control” factor continue to ferment in the future? Is the peak season of the entire industry chain still worth looking forward to? These all affect the sensitive nerves of the market.
Since September, although the market has entered the traditional “Golden September and Silver Ten” peak season, the demand side has not rebounded significantly. Instead, it has continued to weaken, as if it has skipped autumn and entered winter ahead of schedule. . Downstream weaving factories have insufficient orders and poor demand. Some major manufacturers lowered prices and sold goods, but sales were still lower than expected. Market risks are increasing. Most traders are also reducing yarn ordering, selling at reduced prices, and destocking. Early orders are also delayed in picking up goods.
However, the market may usher in a turn for the better due to this limited production suspension! “Although the performance of orders during this year’s peak season was poor and there was still no significant improvement in mid-September, exports may have been completed ahead of schedule under the pressure of rising sea freight. However, the domestic ‘Double Eleven’ is still an important sales window period, and orders will be placed later in the year.” The greater the possibility of recovery.” Industry insiders said that last year’s orders appeared intensively at the end of September, which was reflected in concentrated emergency orders. This year, all aspects of upstream raw materials have been fully prepared for the expected peak season, but the order performance is average. The production limit in September will reduce output to a low level. Once peak season orders are reflected in October, it will accelerate the digestion of inventory in all links and be conducive to the restoration of profits in the industrial chain. “As for whether the peak season of the ‘Golden Nine and Silver Ten’ is worth looking forward to, currently we don’t have high expectations for exports, and domestic consumption is relatively weak, but window promotion orders are still worth looking forward to.”
When will the production suspension and restriction end?
At present, it seems that it has just begun!
The editor believes that energy consumption indicators will become the core bottleneck factor limiting the expansion of new production capacity.
Because the textile and chemical fiber industries are industries that consume relatively large amounts of energy. Under this background, if there are such strong constraints on existing enterprises, especially on operating rates, then it is conceivable that it will be more difficult to add new production capacity indicators. We believe that it will seriously affect the subsequent supply of raw materials, and the response speed to demand will prolong the time when supply exceeds demand. The impact of this wave of dual energy consumption control is currently just beginning. </p
