Recently, the production and sales of small and medium-sized textile enterprises in coastal areas have ushered in the best period since 2020. The operating rate of most textile enterprises in Jiangsu Province has continued to increase, and the average order holdings are in January-February. Affected by the positive factors in the cotton market, corporate bullish confidence has increased. Up to now, the quotation price of standard grade lint in Yancheng, Jiangsu Province has been stable at around 15,500 yuan/ton, and the yarns of enterprises have maintained profitability.
Currently, the rebound of the epidemic in some areas of the country has brought tension to the cotton market. From the perspective of production and sales, enterprise shipments must be related to the circulation of social materials. If one place is blocked, everything will be restricted. If a large amount of raw materials is purchased, not only will the financial strength be limited, but it will also increase corporate risks. Therefore, textile companies are cautious in accepting large and long-term orders, and still adhere to the business model of diligent purchase and fast sales.
The Spring Festival is approaching, and a large number of migrant workers are returning home one after another. In order to reduce the risk of the epidemic, some textile companies in Yancheng, Jiangsu Province provide holiday subsidies of 500-1,000 yuan to employees who do not go home or leave the factory during the Spring Festival. Several heads of textile companies interviewed said that the epidemic develops irregularly and cannot be controlled, and it is now impossible to make holiday plans for employees during the Spring Festival. Based on the analysis of the current situation, the next step of the company’s business arrangements is more “determined” by the epidemic. The company must obey the overall situation and obey the leadership and management of the local government and disease control department. Most textile companies with a large number of non-local employees may adopt the method of “persuading them to stay” and spend their holidays by taking less holidays during holidays or taking rotational leave at the factory. It is expected that textile companies will maintain half of their operating rate during holidays. For the raw materials required for continued startup, the company will increase purchases accordingly and plans to implement them by the year. </p
