On June 11, the A-share textile and apparel sector continued to rise, among which Blum Oriental and Zhongyin Cashmere Industry reached their limit; Jiumuwang, Yingfeng Shares, Xinye Textile, Huafu Fashion, Semir Clothing, Jujie Microfiber, Fuchun Dyeing and Weaving and other stocks rose. The rise in textile and apparel stocks can also indicate, to a certain extent, that market confidence is recovering in the near future.
Especially the recently released national textile and apparel export data, the market has seen signs of order growth. According to customs statistics, from January to May this year, the country’s textile and clothing exports were US$112.69 billion, a year-on-year increase of 17.3%. Among them, textile exports were US$56.08 billion, an increase of 16.1% compared with the same period in 2019. In the month of May, clothing exports were US$12.20 billion. , a year-on-year increase of 37.1%.
The improvement in foreign trade exports is mainly affected by the blockade measures during the epidemic. The exports of the Indian garment industry have shrunk severely. my country’s textile companies have been less affected by the epidemic and have accepted some orders from South Asia. However, recent changes in the epidemic have caused the market to have certain concerns about the future textile market.
India partially unblocks, Vietnam and Thailand epidemic worsens
Early this month, India’s epidemic situation worsened on a single day The number of confirmed cases has dropped from 300,000 to 400,000 at the peak to about 100,000. Due to the early epidemic and blockade measures, many authoritative institutions predict that India’s economic growth from April to June will be affected. Faced with the improvement of the epidemic, various parts of India quickly started unblocking mode. New Delhi Chief Minister Kejriwal said that the epidemic situation in New Delhi is slowly improving, markets and shopping malls will reopen, and it is only a matter of time before various factories resume normal production.
India is about to resume production and resume work. Enjoy the early orders It is obviously not good news for textile companies returning home. Not only that, the epidemic situation in Vietnam and Thailand, our important textile exporting countries, has worsened again recently. From the end of January last year to the beginning of May this year, Vietnam recorded a total of about 3,000 new cases of COVID-19, but the number of cases increased by 5,300 in the following month, an alarming growth rate. At present, some factories in Vietnam have suspended production and are on holiday. The cumulative number of confirmed cases of the epidemic in Thailand reached 30,000 on April 8. Just two months later, the cumulative number of confirmed cases exceeded 180,000, a very rapid growth rate.
Thailand and Vietnam imported 21.8 billion and 103.9 billion yuan of various textiles from my country respectively in 2020. The recent epidemic growth rate in these two countries has exceeded that of last year, which will inevitably have a certain impact on my country’s textile exports, especially since some factories in the above-mentioned countries have begun to suspend production and quarantine.
Some fabrics are selling well, and it is difficult to prevent the weaving operation rate from falling
Recently, there has been a decline in the gray fabric market The hot situation has not been seen for a long time since the off-season. Products such as four-sided elastic, T400, pongee, nylon, and gallbladder are extremely popular in the market, making people feel that the off-season is far from over. But in fact, the operating rates of weaving, printing and dyeing have already gradually weakened.
In recent weeks, the weaving operation rates of various textile clusters in Jiangsu and Zhejiang have mostly maintained a decline of 1-2%. Due to the lower weaving operation rates in the downstream, the upstream polyester Production and sales have also hovered below 50% for a long time. The printing and dyeing situation is not optimistic either. The recent arrival of gray fabrics into warehouses has been decreasing, and the operating rate is also gradually declining. Why hasn’t the weaving and dyeing factories responded to the booming situation of some fabrics in the gray fabric market?
The current hot sales in the gray fabric market are mainly from For stocking and replenishment orders. As the price of spandex has continued to rise in the recent period, many textile companies have placed orders in advance and stocked up due to the mentality of “buying up, not buying down”, which has promoted the shipment of elastic fabrics to a certain extent. In addition, most of the more popular fabrics on the market are autumn and winter fabrics. This type of fabric is popular because, on the one hand, despite the global epidemic last year, the sales of autumn and winter textile clothing were still good in the second half of the year. Textile companies have seen the power of the autumn and winter market; on the other hand, The sales of autumn and winter clothing such as down were good last year, which also led to the inventory of related clothing falling to a low level. This year, there is a demand for replenishment in the market.
But these hot-selling gray fabrics to some extent It will overdraw future fabric orders and digest the peak season in September and October in advance, which will lead to a decrease in orders for this type of fabric in the second half of the year. Moreover, not all weaving companies are involved in the above-mentioned products. The number of companies that can profit from the recent hot sales is limited, and the natural start-up rate is also controlled. In addition, many companies are hoarding gray fabrics. It is still unknown which color orders will appear on the market in the second half of the year. Therefore, these gray fabrics have not yet been sent to the printing and dyeing factories in time. The market is in the off-season, and it is difficult for the market to reverse completely before major positive developments occur.
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