Weaving and knitting mills may keep low run rate in Oct

Starting from mid-Sep, Shaoxing, Yiwu (Zhejiang), Wujiang (Jiangsu), Chaoshan, Dongguan (Guangdong) and other regions have gradually implemented the dual control policy, and weaving factories have reduced and stopped production.

For example, more than 160 textile-related enterprises in the Keqiao Binhai Industrial Park in Shaoxing (Zhejiang) have all stopped; the dyeing industry in Wujiang have largely been suspended for holiday; production is generally restricted in Yiwu, and so on. Since mid-Sep, the average operating rate of Zhejiang circular knitting machines and Guangdong warp knitting devices has generally dropped by 5-10%, while that of Wujiang water jet looms has dropped by 55%.

The production restriction will be ended by the end of Sep, however, the week-long holiday in Oct may still affect a certain part of weaving and knitting plants, who have not received enough orders. Their production shutdown may be extended. It is probable that the recovery in weaving and knitting mills’operation after the National Day holiday (Oct 1-7) will be limited, and they may keep running at low-capacity for a period of time.