Textile demand picks up, business quarterly high this year

The fast fashion craze in the apparel industry has subsided, causing domestic textile mills to experience a decline in operations and a decrease in orders in 2016. This year, although the sales of brand apparel and distributors have recovered, The speed is not as fast as expected. Whether it is the polyester, finishing yarn and nylon industries upstream and downstream, or the downstream garment OEM, they should be in a low growth or even recession situation in the first half of the year; in terms of overall apparel sales expectations, domestic fabrics industry, it is estimated that growth momentum will not really be felt until the second half of the year.

Judging from the above midstream polyester and finishing and nylon factories such as Lipeng, Hongyi, Jisheng, etc., driven by oil prices in the first quarter, product prices remained at a relatively high point. Therefore, The operating performance in the first quarter was good; however, in the second quarter, due to the drop in oil prices, the raw materials EG, PTA and CPL were also reduced. Therefore, the prices of finishing yarn and nylon were also affected and fell. In addition, the production capacity in mainland China increased. The decline in exports and demand has caused the operations of upstream and midstream textile fiber mills to face recession challenges in the second quarter.

As for the downstream garment foundries that were supposed to regain growth momentum in the second quarter, due to the weakening of orders from brand factories and inventory factories, many garment foundries in April Revenue was also lower than expected, which also caused the market to question the operating performance of the domestic garment OEM industry in the second quarter.

However, domestic textile mills are still cautiously optimistic about their performance this year; especially, with the arrival of summer, bottle polyester is expected to drive the peak season of finishing yarn and nylon, including UA, ADIDAS Brands such as apparel are still confident in their growth this year, and the operations of downstream garment factories in the second half of the year should also regain their past growth momentum.

AAASDFERHYTJTI

Disclaimer:

Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights, please contact us and we will change or delete it as soon as possible.