Shrinking foreign trade demand

Since September, European countries have ushered in high outbreaks, and the number of newly diagnosed new coronary pneumonia in a single day has continued to rise. According to reports, the number of newly diagnosed patients with new coronary pneumonia in Europe last week reached 300,000, breaking the highest record since the outbreak. As the epidemic continues to ferment, many European countries have implemented stricter social distancing restrictions.

"We have been keeping in touch with customers in Europe these days, and we are afraid that we will cancel the order halfway, and the story of the first half of the year will be repeated." Trader Mr. Zhang said. Coincidentally, a boss who has been in the textile auxiliaries market for more than 20 years revealed: "Now we are very worried about the situation in Europe and South American. If some European countries adopt measures such as lockdowns, our goods will be very It’s hard to get past and it has to be cancelled."

Recently, foreign trade orders have improved. This is because according to the usual practice in previous years, in order to prepare for the Christmas season, foreign customers will place orders in advance. The end of September to October is the time point for centralized release, and the rebound of the epidemic in Europe happened at this time. Now traders are exporting to Europe. Will this part of the order be cancelled or delayed again due to the epidemic? Because of the poor business of foreign dyeing factories, the demand for textile auxiliaries has dropped a lot.

In addition to the epidemic, the appreciation of the renminbi has also aggravated the uncertainty of orders. Those who do foreign trade are most worried about the fluctuation of the RMB exchange rate. The recent appreciation of the RMB is a huge loss for foreigners who have not settled foreign exchange. In the foreign trade market, the phenomenon of grabbing orders and lowering prices has occurred frequently, and the fluctuation of exchange rate has exacerbated the uncertainty of foreign trade orders.