2019 What problems textile manufacturers will face in textile printing and dyeing industry?

Against the background of weak global economic growth, lack of market demand and resource and environmental factors conditioned, resurgence of production capacity, difficulties of foreign trade, and soaring costs are becoming major obstacles to the development of the textile industry. Especially for the textile industry, 2019 will be a year of crisis and opportunity.。

1.The production capacity of gray fabric in allopatric state is expanding continually.

In recent years, along with the advancement of environmental protection and supply-side reforms, many relevant clusters of major textile provinces have issued policies that are not allowed to add new capacity, and they have to phase out and transfer backward textile production capacity. However, in the process of policy “Empty the cage and replace the birds”, it should have been a pattern of industrial transformation and resource integration. But many new factories have sprung up and formed in northern Jiangsu, Anhui, Jiangxi, Hubei and other places, new factories have sprung up and formed, that has been a great shock on the market.

At present, this sign has begun to emerge in the Jiangsu and Zhejiang markets. "There has been a lot of foreign sources coming in the market recently, and the market is beginning to be weak. I feel that the supply is not as tight as before." Insiders analyzed whether downstream demand can digest the new capacity in the market has undoubtedly become a puzzle. The problem of the market, if the expansion of allopatric production capacity of fabrics can’t be digested timely by the downstream, price war will be reopened in 2019.

2.The advantage of price has gone forever

As for the current situation of foreign trade, some people in the industry have used the word ‘Suffering’ to describe it. The day in which we can seize the opportunities depending on advantage of price is gone forever,  In the past, the days of relying on price advantage to seize the opportunities are gone forever. Nowadays, with the rising of labor costs and the weakening of international market demand, the textile foreign trade industry shows a trend of ‘aging’.

In addition to the greater impact of Sino-US trade friction, due to rising costs of labor, raw materials, etc., weakening demand in the international market and insufficient innovation capacity of enterprises, the trend of traditional foreign trade orders falling and fragmentation still exists in 2019.

However, due to the transfer of textile industry, the garment industry in Southeast Asia is constantly developing, but development of local supporting industries takes time. Therefore, the international market still needs to import a large amount of raw materials such as yarn, grey cloth and fabric from China. So overall, the 2019 foreign trade market for fabrics is still not clear.

3.The spot trading model has many advantages

At present, with the increase of foreign technical trade measures and the intensification of domestic competition, the contradiction of oversupply in the market has become increasingly prominent. However, in such a tough market environment, the market share of some world-renowned brands has not decreased, instead of becoming larger and larger, and space for companies without brands has become narrower and narrower. Therefore, starting your own brand and establishing a good brand image will become more important and urgent in 2019.

Industry experts remind enterprises that, in addition to the need to improve product quality and establish intellectual property protection mechanisms, it is also necessary to see that due to wide range, fast speed, low cost of popularizing brand by internet, and the increasing purchasing power of mainstream consumers, small and medium-sized enterprises Fabric printing and dyeing enterprises have ushered in a rare development opportunity, and relevant enterprises can vigorously develop their own brands from the aspects of differentiated strategy, new media promotion, innovative optimization products and so on.

4.The atmosphere of the dye market is getting better

Looking back at 2018, China's dye market is running at a high level. After the Obviously improving in 2016 and 2017, the dye market has made a good repair to the collapse of the industry in 2015.

Looking forward to the Chinese dye market in 2019, the decline in operating rates may be restored. In the fourth quarter of 2018, the parking plant in northern Jiangsu began to gradually resume work. It is expected that in second half of 2019, the effective capacity of the dyes in northern Jiangsu will be restored, and the industry start-up and production supply will gradually increase.

At the same time, many sets of large-scale dye relocation and expansion projects are gradually coming to an end. Some projects are expected to release new production capacity in 2019. This increase in production capacity will further lead to a loosening of supply in the dye industry.

In fact, no matter whether it is external factors or internal factors, it is not terrible. If you want to get rid of the confusion and rush out of the encirclement, you must pay attention to the market conditions and related policies in a timely manner. The most important thing is to keep steady and steady.

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Contact: Violet Liu

Phone: (+86)-1355-416-3949

Tel: (+86)-1355-416-3949

Company: Wuhan GeLiYuan Textile Co., LTD

Add: Building 7 Cube City 107 National Road Dongxihu Wuhan Hubei PR.China