To What Extent Has The Factory Gone Out Of Stock

To What Extent Has The Factory Gone Out Of Stock
According to the report of foreign industry institutions, the international spot market transactions in the recent week are still weak, and the inquiries from all parties are sporadic, and the nature of the purchase is that the textile factory is basically still digesting the high inventory in the supply chain channel, and continues to cope with the painful situation of slow downstream orders.

The factory has made some progress in de stocking. According to the latest statistics of the European Union, the clothing import volume in September increased by 19.5% year on year. Although it is not up to the growth rate of 38.2% in August, it is still positive. These are the inventories formed by over booking in the early stage and are gradually transferred to the next link.

Compared with the decline of clothing imports in the United States (22.7% YoY in October), the EU’s clothing imports still maintained a rapid growth momentum. This data is not necessarily conflicting – on the contrary, it indicates that “ordered goods” may have reached the peak sometime in August/September. With the release of logistics, new orders and shipments have stalled. The current excess inventory is probably between wholesalers and retailers. Until this situation changes, orders are unlikely to recover significantly. Considering that there may be a delay of 1-2 months (and holidays), perhaps the best result that the market can expect is at the end of the first quarter or the beginning of the second quarter of 2023. Although these are not news, they are still worth mentioning here.