China Textile Union Weekly Survey: Textile Industry To Resume Production And Further Improve The Situation

In order to better understand the direct impact of the new coronavirus pneumonia on the production and operation of the textile industry, China Textile Federation launched a weekly survey on the resumption of textile production in March 3rd. As of March 11th 12, a total of 260 enterprises were back in line with the start up of the enterprises last week. The China Textile Federation (CSPC) carried out a summary analysis of the weekly information, and submitted the latest progress of the industry's resumption of work and recovery to the relevant departments of the national development and Reform Commission and the Ministry of industry and information, and feedback on the difficulties and policy demands faced by the enterprises, and put forward policy and measures suggestions. The report on the resumption of production and recovery of textile enterprises within 11 weeks of March 4th ~3 is reported below for industry reference.

The pace of resuming and resuming production of textile enterprises has been quickened, and the situation of small and micro enterprises has improved, and the ability of production and organization has gradually resumed.

According to the results of the weekly redevelopment report, at 12 hours ~3, 11, 12, March 4th, a total of 239 enterprises submitted effective rework data through the online questionnaire. The proportion of the returned enterprises reached 93.3%, which was 3.4 percentage points higher than that of the previous week. 223 of the number of workers returning to work in the resumed enterprises reached 182 thousand, accounting for 80.6% of the total number of employed workers in the normal situation, compared with the previous week. It increased by 8.2 percentage points. The textile enterprises that have not yet resumed work are mainly located in Hubei, Xinjiang autonomous region and Henan province.

The central textile union group office and the park office carried out a survey of 28 key textile industrial clusters in 13 provinces of the country. As at 12 o'clock in March 6th, a total of 49 thousand textile enterprises resumed production, accounting for 64.2% of the total number of such enterprises, which was 43.1 percentage points higher than that of a week ago. The number of workers returning to work reached 1 million 423 thousand, accounting for 58.4% of the total number of workers employed in the above-mentioned normal clusters, up 33 percentage points from the survey a week ago. Among them, 3877 of the above scale enterprises in the cluster, the proportion of the returned enterprises has reached 94.9%, and the proportion of the reemployment staff has reached 61.5%, which has increased by more than 10 percentage points compared with the survey last week.

Small and micro enterprises resumed production and improved production situation. A total of 45 thousand enterprises under the 28 key industrial clusters realized the resumption of work, accounting for 62.6% of the total number of enterprises under the cluster rules, which was more than 40 percentage points higher than the survey data last week. Under the regulation, the number of workers returning to work reached 626 thousand, accounting for 48.4% of the normal number of workers. However, compared with enterprises above cluster size, the progress of small and micro enterprises resuming work is still relatively slow.

The ability of production organization is gradually restored. According to the survey of China Cotton Textile Industry Association, as of March 8th, 47.9% of the surveyed enterprises indicated that they had the ability to meet customer's purchasing needs in time, an increase of 8.4 percentage points from the previous week.

The synergy of the industrial chain has been continuously improved, and the resumption of the professional market has improved further.

In the past week, the resumption and resumption of production in the textile industry chain has been further improved. The textile and garment market has been quickening the pace of resuming work, and the efficiency of the upstream and downstream collaborative operation of the textile industry chain has been further restored.

The resumption of production in the upstream part of the textile industry chain has been maintained well. The survey data of China Textile weekly show that about 90% of the chemical fiber and cotton spinning enterprises have resumed production. The industry chain terminal industry has been improving and resuming production. According to the key industrial cluster data collected by China Textile Corporation in March 6th, Dongguan, Nantong, Changshu, Haining and other 12 information complete garment and home textile industrial clusters have reached 59.3% of the total number of reemployment enterprises. Among them, 5 of the 5 apparel and home textile clusters that have delivered effective data in Nantong, Changshu and Yudu have reached 44.1% Compared with last week, the survey results increased by 25 percentage points.

The market resumed further. According to the survey data of the 101 major textile and garment market in China in March 10th, the market opening rate of monomer market has reached 86.1%, which is 1.9 percentage points higher than that of the previous week. The number of commercial shops has been 72 thousand, accounting for 50.8% of the total number of shops in the normal situation, 6.5 percentage points higher than a week ago, and more than half of the shops have resumed business.

The order situation of the resumed enterprises is not obvious, and the utilization rate of the capacity is relatively high.

Weekly data show that in 228 of the reemployed enterprises that effectively filled in the order, 30.3% of the enterprise orders had reached 80% of the normal situation, 40.3% of the enterprise orders reached the normal level of 50%~80%, 29.4% of the enterprises' orders were less than 50% of the normal situation, and the results were basically the same as that of last week, indicating that the improvement of enterprise orders is not obvious.

According to the new capacity utilization survey this week, compared with the order situation, the current enterprise load is at a relatively high level. Of the 228 reemployed enterprises that effectively submitted capacity, 56.6% of the enterprises had reached 80% of their capacity utilization. In the 129 enterprises with capacity utilization exceeding 80%, 51.9% of the enterprises' orders did not reach the normal level of 80%. If the start-up load is higher than the order holding level, if the enterprise continues to run, the enterprise may have more stock pressure and tight capital chain.

Terminal demand has not yet been restored, and sales channels are still not smooth. The impact of textile enterprises on resumption of production and production has become increasingly prominent.

This week, labor shortage, poor logistics and high logistics prices are still restricting factors for enterprises to focus on re production and re production. At the same time, with the promotion of enterprises' resumption and resumption of production, insufficient market demand and unsmooth sales channels have become the most important factors affecting the production and operation of enterprises.

China Textile Federation has feedback to the relevant government departments about the demands of enterprises, and continues to suggest measures to lighten the burden of enterprises and relieve the pressure of capital turnover. At the same time, it puts forward specific policy recommendations for stimulating domestic demand and stabilizing export competitiveness.

At present, the domestic epidemic situation is being gradually controlled, but the domestic demand market will be fully revitalized for some time. Under the present circumstances, it is suggested that the terminal product manufacturers fully tap the network sales market space, and various enterprises can also widely apply the professional market online service platform to effectively integrate the upstream and downstream resources of the industrial chain. Despite the global spread of the new crown pneumonia epidemic, there are still some supply gaps in the international textile supply chain due to the long duration of the epidemic. Export enterprises should fully tap the demand opportunities, effectively coordinate resources, and steadily enhance the supply capacity.