Foshan's textile weaving industry in Guangdong is enduring one of the coldest summers in recent years. According to publicly available industry data, the overall operating rate of circular knitting and flat knitting machines in the local area has fallen below 20%, with most small and medium-sized weaving factories choosing to suspend production or significantly reduce capacity. Cloth shops and factories are generally implementing employee rotation systems. This level of capacity utilization means that the operation of the entire industrial chain has almost come to a standstill, leading to a sharp contraction in upstream procurement demand for cotton yarn and chemical fiber raw materials.
Depth of Off-Season: High Inventory Pressure and Price Negotiations
The sluggishness of the cotton yarn market is evident from price trends. Currently, only sporadic orders for 32S and 40S high-compact yarn varieties exist, with local delivered prices in Foshan around 23,300 yuan/ton and 25,200 yuan/ton, respectively. However, these are not rigid price anchors; actual orders still have significant room for negotiation, and traders and end-users have a strong willingness to bargain for lower prices. This pattern of 'low prices and sporadic transactions' reflects extreme weakness in downstream demand, with buyers generally adopting a wait-and-see approach and lacking the motivation to build new inventory.
The inventory pressure in the grey fabric segment is even more intuitive. Currently, the grey fabric inventory cycle for cloth shops and weaving factories in Foshan generally exceeds 30 days, a relatively high inventory level. To free up capital and reduce storage costs, companies show an unprecedented strong desire to destock. This means that even if sporadic new orders emerge in the short term, companies are more inclined to digest existing inventory rather than actively increase raw material procurement or start new production lines. This 'destocking first' strategy further suppresses upstream raw material demand.
Industrial Transmission: Chain Reaction from End Consumption to Upstream Raw Materials
Behind the low capacity utilization and high inventory is the persistent weakness at the end-consumption stage. Market feedback indicates that only a few types of cotton-polyester blended fabrics have sample orders for trial production, lacking support from large substantive orders. This suggests that brands and retailers are cautious about future market expectations and are extremely conservative in their replenishment behavior. For buyers, the current market environment means that suppliers' bargaining power has significantly weakened, presenting a window to negotiate better prices and payment terms.
However, the duration of this downturn remains uncertain. The industry generally expects no significant improvement in local consumption in the short term, and a real market recovery may have to wait for the traditional peak season of 'Golden September and Silver October' in the textile industry. This means that from now until early September, Foshan's weaving industry may continue to endure the dual pressures of low capacity utilization and high inventory. For foreign trade companies, it is necessary to be vigilant about the risk of overseas orders being delayed simultaneously and to proactively adjust production plans and raw material stocking schedules.