The New Round Of Shuffling Is Preliminarily Completed. Details Of The Operation Of The Filament Weaving Industry In 2018 Are Here.

In 2018, China's filament weaving industry striving to adapt to the changing situation and transform and develop in the industrial transfer. Through the positive promotion of the transformation and upgrading of the whole industry and industrial transfer by local governments and trade associations, a new round of industry reshuffle has been preliminarily completed. The results of the supply side reform in various regions show that China's chemical fiber weaving processing industry has entered an orderly competitive environment. Since the two quarter of 2018, the economic indicators of China's chemical fiber weaving processing industry have shown steady growth.

Steady growth in whole industry production

According to the Association statistics, as of the end of 2018, the loom size of China's filament weaving industry reached 640 thousand, of which 580 thousand were water jet looms, an increase of 16% over the same period last year. In 2018, the total output of China's chemical filament fabrics reached 50 billion 800 million meters, an increase of 5.39% over the same period last year. The main reason for the increase in output is slower than the growth rate of production capacity. In the process of industrial transfer, some new equipment is put into production in the second half of the year, and the capacity is not completely released.

According to statistics from various clustered areas, the output of six chemical fiber filament fabrics in Shengze, Changxin, Xiuzhou, Longhu, Ping Wang and Keqiao reached 27 billion 968 million meters in 2018, up 2.46% over the same period last year. The growth rate of industrial cluster production is lower than that of the whole country, indicating that the trend of industrial transfer has been initially formed. In 2018, the output of new industrial clusters, Siyang and Xiao Hai, reached 1 billion 131 million and 467 million meters respectively, up 16.97% and 18.23% respectively from the same period last year. The emergence of new industrial clusters has provided strong support for maintaining steady growth in the whole industry.

Regulation enterprise revenue profit double growth

According to the statistics of National Bureau of statistics, in 2018, the income of owner's business in China's above scale chemical fiber weaving processing totaled 110 billion 331 million yuan, an increase of 8.77% over the same period, and the growth rate was 0.88 percentage points lower than that in 2017. The total profit amounted to 4 billion 465 million yuan, up 12.65% from the same period last year, and the growth rate dropped by 10.48 percentage points compared with 2017.

Data show that in 2018, China's above scale chemical fiber weaving and processing industry's main business revenue and total profit grew significantly over the same period last year, one of the reasons is the fall in the three fee of enterprises. Data show that the financial cost of enterprises decreased by 10.44% compared with the same period last year, and the pressure was alleviated. In addition, based on the booming market demand, the enterprises' orders were good, and the sales expenses increased by 2.46 percentage points lower than that in 2017. The enterprises increased investment in staff training and talent team construction, and the management fees increased by 12.7% over the same period. In 2018, the ratio of assets and liabilities of our chemical fiber weaving and processing industry was 62.29%, and the liabilities of enterprises were in good condition. The profit margin is 4.05%, and the profit margin of enterprises keeps in the normal range. The survey information shows that the actual profit margin of some excellent enterprises in the industry is around 10%. After a round of shuffling in 2017, some smaller and less capable enterprises have vanished from the competition.

Export is complex and changeable.

The frequent Sino US trade frictions and the fluctuation of exchange rate in 2018 have brought some influence to China's textile exports. According to the statistics of the National Bureau of statistics, the export value of textile industry increased by 1.67% over the same period in 2018, of which the delivery value of filament fabrics increased by 16.17% over the same period last year, and the growth rate increased by 4.65 percentage points compared with that in 2017. However, according to the data collected by various industrial clusters, the delivery value of China's main filament weaving industrial clusters in 2018 was 0.76% lower than that in the same period in 2017, indicating that the export environment is not friendly. As can be seen from the chart below, the market sentiment index has plummeted after May 2018, and foreign trade entrepreneurs have not enough confidence in the international market.

According to the US Department of Commerce and textile office data, in 2018, the total amount of imported silk fabrics from the United States increased by 2.71% over the same period last year, of which household clothing fabrics increased by 3.68% compared to the same period last year, and industrial fabrics increased by 2.45% over the same period last year. The market share of Chinese products in household apparel fabrics in the United States dropped from 43.43% in 2017 to 42.62%. The market share of major competitors in Korea also declined, from 19.66% in 2017 to 17.15%, and the market share of Canada increased significantly. In addition, the market share of Chinese products in the United States increased from 22.94% in 2017 to 27.36% in 2018, the fastest growing country in the United States to import such products from the world.

The above analysis shows that, on the one hand, the demand for filament fabrics in the US market is still growing. On the other hand, China will face more competitors in household clothing products. In addition, China's filament fabric has been developing rapidly in the field of industrial application, and remarkable achievements have been made in scientific and technological innovation.

Domestic sales boosted market confidence

Although the market sentiment index is on the decline, the market price of China's chemical fiber filament fabrics has not been affected, but it has grown slowly and steadily, and the domestic market environment is better than exports.

According to the statistics of National Bureau of statistics, in 2018, the total retail sales of consumer goods increased by 9% over the same period last year, of which 8.8% grew year on year, and 10.1% increased by the same period last year. In 2018, China's consumer price index increased by 2.1% over the same period last year. In terms of clothing, China's clothing and consumer prices increased by 1.2% over the same period last year, including 1.1% year-on-year growth in urban areas and 1.5% year-on-year growth in rural areas. In 2018, the online retail sales of physical commodities amounted to 70198 billion yuan, an increase of 25.4% over the same period last year, accounting for 18.4% of the total retail sales of social consumer goods, an increase of 3.4 percentage points over that of 2017. In 2018, the online retail sales of apparel products nationwide increased by 22% over the same period last year, and the growth rate was higher than the 1.7 percentage points in 2017, leading to online consumption. Based on the data, the demand for domestic textile market is strong, the consumption desire of residents is not reduced, and the domestic sales pull is obvious.

From the chart below, we can see that the price of high value added fabrics such as down garments and business clothes is relatively stable all year round. In 2018 5~9, raw material prices rose, pushing the price of silk fabrics soaring. In the fourth quarter of 2018, the price of raw materials dropped rapidly, resulting in the price dive of simulated silk fabrics, and the prices of other products were adjusted by the price of raw materials.

According to the statistics of National Bureau of statistics, the owner's business income of dyeing and finishing of chemical fiber fabrics above 25 billion 98 million yuan increased by 13.59% compared with the same period last year, with a total profit of 1 billion 497 million yuan, an increase of 36.89% over the same period last year. Under the increasing pressure of environmental protection, many dyeing and finishing enterprises have been closed down except for a few enterprises that do not comply with the environmental protection regulations. Most dyeing and finishing enterprises are faced with undiminished market demand, and often appear queues for dyeing. Dyeing and finishing enterprises still get high profits in the case of three increase of 12.72%.

Fluctuation of raw materials

The following 6 charts show the price trend of Brent crude oil, cotton, PTA futures and chemical fiber filament in January 2017 ~2018 December.

January 2017 ~2018 December China's chemical fiber filament and cotton price chart (unit: US dollars / barrel, yuan / ton)

In the summer of 2018, the price of crude oil increased from 64.75 US dollars to 82.95 US dollars per barrel. Along with the soaring price of crude oil and PTA, the price of chemical fiber filament rose rapidly. This allows companies that have long orders and hoarding raw materials to secretly delight themselves, and dare not take longer orders. This round of raw material rally has made the profit margins of filament weaving enterprises continuously squeezed, and the price of products has to start rising. Entering the 2018 fourth quarter, raw material prices were plunged rapidly, the market was affected by this fluctuation, sales declined, and enterprises turned to wait-and-see attitude, resulting in some backlog of inventory. At the beginning of 2019, the inventory problem was basically solved.