Textile Industry'S Resumption Of Production Remains Stable And Orders Are Insufficient.

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 of textile enterprises' resumption of production and resumption in March 3rd. A total of 498 enterprises responded to the start of the business online by 12 at the end of April 1st. 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 1 weeks of March 25th ~4 is reported below for industry reference.

The situation of resuming and resuming production of textile enterprises has remained stable, and the industrial chain operation has basically returned to normal.

According to the results of the weekly redevelopment report, at 12 o'clock on March 25th, ~4, 1, 12, a total of 193 enterprises submitted effective rework data through the online questionnaire. The proportion of the returned enterprises has reached 98.4%, which is 1.3 percentage points higher than the previous week's survey results. The newly resumed enterprises are mainly located in Hubei and Xinjiang. The number of returning workers in 190 reemployment enterprises reached 293 thousand, accounting for 94.6% of the total number of employed workers under normal conditions, which was 3.2 percentage points higher than the previous week's survey results.

　　 ? ? 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 27th, a total of 66 thousand textile enterprises in the cluster resumed production, accounting for 86.4% of the total number of cluster enterprises, a slight increase of 0.2 percentage points from the survey data a week ago, and the number of workers returning to work reached 1 million 665 thousand, accounting for 76% of the normal number of workers, compared with the survey data a week ago. Increase by 4.5 percentage points. Among them, 3954 of the above scale enterprises in the cluster, the proportion of the returned enterprises has reached 99.1%, and the proportion of the reemployment staff has reached 84.9%, which is 0.5 and 3.3 percentage points higher than that of last week's survey data respectively.

The resumption of production and resumption of small and micro enterprises has continued to improve. A total of 62 thousand enterprises under the 28 key industrial clusters resumed their work, accounting for 85.7% of the total number of enterprises under the cluster rules, 0.1 percentage points higher than the survey data a week ago, and the number of workers returning to work under the regulation reached 1 million 10 thousand, accounting for 71.2% of the normal number of workers, up 5.2 percentage points from the survey data a week ago.

　　 The progress of resuming and resuming production on the upstream and downstream of the textile industry chain basically achieved synchronization, and the overall industrial chain operation coordination reached the normal level in general. According to the weekly survey, the proportion of the returned cotton textile and chemical fiber industry in the upstream of the textile industry chain, and the surveyed enterprises in the middle and lower reaches of the weaving, dyeing and knitting industry were maintained at over 95%, and the proportion of workers returning to posts was more than 90%. According to the cluster survey data, Dongguan, Nantong, Changshu, Haining and other 10 information complete clothing and home textile industrial clusters 40 thousand enterprises, the proportion of the reemployment enterprises has reached 88.4%, which is 4 percentage points higher than the previous week's survey. Among them, the proportion of Enterprises above Designated Size reached 99.8%, an increase of 1 percentage points from the previous week.

The shortage of orders is still continuing, and export orders are dropping more sharply.

Last week, textile enterprises began to decline in production orders, this week this trend is still continuing. According to the weekly survey results, 190 of the enterprises started this week, the proportion of the enterprises whose orders reached 80% of the normal situation was 33.7%, the proportion of the enterprises whose orders were less than the normal situation was 50%, which was 23.2%, which was basically the same as that of the survey a week ago, but compared with the two weeks ago, the order situation declined significantly. The shortage of export orders is even more prominent. Only 9% of the enterprises export orders reach 80% of the normal situation, and the proportion of export orders is less than 50% of the normal situation. The proportion of enterprises is 61.2%.

　　 The decrease in production orders is mainly affected by the global spread of the new crown pneumonia epidemic. In recent two weeks, with the strengthening of prevention and control measures in various countries, business in major overseas markets has almost stopped, and many international apparel brands have shut down retail outlets in Europe and the United States. China's export textile enterprises have been notified by overseas households to cancel orders, postpone receipt and suspend production. The pressure of epidemic prevention and control in China has also increased due to changes in the global situation. At present, commercial activities have not yet been fully restored to normal, and domestic consumption has failed to rebound.

The shortage of orders has become the primary difficulty facing the production and operation of enterprises. According to weekly and cluster survey data, 80% of the enterprises feedback this week has problems of insufficient orders, a percentage increase of 23 percentage points from a week ago, and 85.7% of industrial cluster feedback problems, which is 9.8 percentage points higher than that of a week ago.

The export industry chain is facing greater operational pressure on the whole, and the load starts to fall.

The pressure of export orders for garments, home textiles, fabrics and other products in the middle and lower reaches of the industrial chain is being carried out along the industrial chain to the upstream, and the export industry chain is facing greater pressure on the whole. According to the investigation and understanding of various professional associations, affected by demand reduction, chemical fiber enterprises have been able to increase inventory and reduce production intention. Spinning, weaving, printing and dyeing clusters and enterprises have gradually started to limit production or encourage workers to reduce production.

As the external single reduction situation has lasted for two weeks or so, this week, the company's production load ended the steady upward trend before, and began to show signs of decline. According to weekly survey data, 57.4% of the 190 enterprises who had effectively completed the production capacity resumed the capacity utilization rate of 80%, which was 2.9 percentage points lower than that of the survey a week ago, and the proportion of the enterprises surveyed with less than 50% of the capacity utilization rate was 10.5%, a slight increase of 0.2 percentage points from the survey a week ago.

The problems such as weak demand, tight funds and so on, still suggest that enterprises should carefully arrange production, actively prevent and control capital chain risks, and export enterprises rationally and steadily sell domestic market.

Affected by low demand and poor sales channels, the price of textile raw materials and finished products is in the downstream channel since the outbreak. Recently, due to frequent phenomena such as breach of contract, withdrawal of orders and rejection of goods, the backlog of raw materials and finished products in textile enterprises is more common. The continuous downward price of the market has led to an increase in inventory losses and increased pressure on capital turnover. This week, the proportion of industrial clusters with financial difficulties was 50%, up nearly 20 percentage points from a week ago, and more than 10 percentage points higher than that of weekly survey companies reflecting capital problems, indicating that the pressure on small and micro enterprises is especially prominent.

The China Textile Federation has collected information from all sides, organized special materials to report to the relevant government departments, and detailed judged the serious situation of the textile industry's current start up, production, export and employment situation, and emphasized again the policy appeals of strengthening financial support, lightening the burden of enterprises, starting domestic demand as soon as possible, and supporting export enterprises to tide over difficulties.

At present, the uncertainty of the global epidemic is very high, and the turning point of the epidemic is still unpredictable. In view of the tension of enterprise capital chain, enterprises are advised to carefully arrange production load, raw materials inventory and investment projects, and vigorously prevent and control capital chain risks. At the same time, we should pay close attention to the supporting measures promulgated by local governments and financial institutions at all levels, and actively strive for policy support. China's export industry chain has a large scale, and the domestic demand market still needs time to fully recover. The consumption characteristics are obviously different from that of the US and European markets. It is suggested that enterprises first evaluate their own production mode, management mode and characteristics of main selling products, and make reasonable choices in such strategies as fighting in the domestic market and opening up other export markets.