India Layoffs 10 Million, 80% European Companies Layoffs, Low Point Is Coming, What Is The Ease Of Business Pressure?

Market brief

Zheng cotton low opened up, the main contract small added positions, short-term technology trend is better, maintain a strong trend of shock. There is no obvious change in the purchase and sale of spot lint, the downstream textile enterprises continue to be cautious and just need to purchase, the spinning mills have insufficient access to the high priced resources, the cotton market is light, the pressure on cotton stocks is large, the cotton trade in the mainland basically stagnates, the terminal demand is weak, the textile enterprises are short of orders, and the intensity of production restriction is increasing. In addition, domestic commercial inventories are at a high level, and short term cotton prices are rising with insufficient kinetic energy. It is expected to maintain a shock consolidation market and pay attention to changes in the external environment and weather changes in Xinjiang.

The price of acrylonitrile continues to be weak, and the mainstream factories are approaching the market. Traders in the market are expected to be cautious. The market has heard of low-end offer. The load of the downstream acrylic fiber plant is less than 30%, the purchasing enthusiasm of the downstream customers is not high, the acrylonitrile market has continued to be tempered, the fundamentals have not been remarkably good, and the new device is still expected to be put into operation. No reduction, short term acrylonitrile price is expected to continue weak shocks. Acrylic staple fiber prices continue to consolidate, terminal demand performance continues to be poor, acrylic fiber industry is running generally, factory has no clear guidelines for new information, downstream factory production and marketing is not prosperous, factories lack of enthusiasm for raw acrylic fiber procurement, and acrylic fiber plant still has inventory to be digested, pay attention to the factory home monthly price guidelines, short-term news is not good, it is expected that acrylic fiber short price will fall hard to rise.

China Textile Industry Enterprise Management Association recently organized a video conference on key textile and garment enterprises. The participating enterprises represent the large and medium-sized enterprises from the scale respectively, covering all aspects of the textile industry chain from the main business, and have their own characteristics from the management mode and strategy. In view of the major crises facing common domestic market consumption such as urgent restart and international market lockout, entrepreneurs speak freely and make suggestions. According to reports, at present, Zhejiang, Shaoxing, Shengzhou and other places have already been shut down by enterprises. Entrepreneurs anticipate that with the gradual control of the international epidemic situation, if the market trend becomes clearer in May, the industry will gradually improve. If the market situation is not improving in June, most enterprises will face a big test this year.

Learned from the Wuhan customs, in the first quarter of this year, the total value of imports and exports of Hubei was 62 billion 750 million yuan, down 20.9% from the same period last year, of which exports were 31 billion 830 million yuan, down 38.1%, and imports 30 billion 920 million yuan, an increase of 11.1%. Clothing and textiles (mainly for protective products) increased by 23.7 times and 90 times respectively. ASEAN is the largest trading partner and has maintained an increase in imports and exports to Japan, South Korea and Taiwan. Hubei's top 6 trade partners are ASEAN, the European Union (excluding Britain), the United States, Japan, Korea and China's Taiwan region. The total value of imports and exports of the countries along the belt and road is 15 billion 130 million yuan.

Learned from the Ministry of Public Security: Recently, in view of the increase in the number of criminal activities involving the melting and spraying of important raw materials for the production of masks, the Ministry of public security has deployed special case actions to crack down on 20 cases and arrested 42 suspects, involving 34 million 450 thousand yuan. It has effectively deterred the criminal activities of the price of melted cloth and effectively curbed the trend of the price rise of the melted cloth. The city of Yangzhong, Jiangsu, on the evening of 15, on the territory of all melt blown cloth production and operation enterprises to carry out a comprehensive shutdown.

In the first quarter, Zhejiang achieved a total import and export value of 629 billion 940 million yuan, down 5.4% from the same period last year (6.4% below the national level). Among them, the total value of exports was 441 billion 550 million yuan, down by 10.4% (11.4% in the whole country), and the total value of imports was 188 billion 390 million yuan, an increase of 8.6% (0.7% in the whole country). In the first quarter, Zhejiang's imports and exports, exports and imports accounted for 9.6%, 13.2% and 5.8% of the total value of the country respectively, and the share increased by 0.1, 0.1 and 0.5 percentage points respectively. The trade surplus reached 253 billion 160 million yuan and narrowed 20.7%.

According to the preliminary results of the questionnaire survey, more than half of the European textile and garment manufacturing industry expects that sales and output will drop by more than 50% due to the outbreak of the new crown virus. In addition, 90% companies are facing serious financial constraints, 80% will be temporarily laid off, and 25% companies are considering closing their businesses. According to the statistics from the European Union statistics bureau, although the sales and exports of textile and garment industry performed well in 2019, the EU's economic recession, trade friction and Britain's departure from Europe, the manufacturing industry needs to face uncertain tariff pressure, and Europe's textile and garment industry has gone through a difficult 2019. The growth rate of retail sales of textiles, clothing, footwear and leather products in stores in 2019 has been growing by 0.9%. In addition, the EU's 27 China World Trade Center turnover has exceeded 170 billion euros (about 186 billion US dollars), an increase of 4% over the previous year, and the export speed is higher than that of import.

According to foreign media, India Garment Manufacturers Association (CMAI) said that more than 80% of India's clothing industry is small and micro enterprises, most enterprises can not afford to carry on 3 to 6 months of the epidemic. There are about 3700 registered enterprises in the association, employing over 700 thousand people. If the India government does not take assistance in wage subsidies or in the resumption of work plans, it will lead to a significant reduction in the entire textile industry in India, with a total number of layoffs or up to 10 million people. According to the latest prediction of Barclays Bank, the total blockade measures will make India lose 234 billion 400 million US dollars. Recently, the India central bank also admitted that India's economy could not achieve 5% growth rate in 2020 due to the impact of the epidemic.

In April 8th, the Ministry of trade of Turkey issued the Announcement No. 2020/6, which, according to the application of Turkey's domestic enterprises, initiated an anti-dumping investigation on the origin of the non-woven products weighing 5603.14 grams per square meter (tax number 5603.14) and the artificial leather (tax number 3921.13) with a weight of more than 150 grams per square meter. During the investigation, the current anti-dumping measures are still effective. The interested parties should submit questionnaires and comments on the case within 37 days of filing the case.

In April 15th, the application of the India synthetic fiber industry association submitted an investigation of the second anti-dumping sunset checks originating or imported from China and Thailand. This case involves 5402.47 products under the India customs code. The dumping investigation period is January 1, 2019 -2019 December 31st (12 months). The investigation period is April 1, 2016 -2017 March 31st, April 1, 2017 -2018 March 31st, March 31st -2019 and dumping investigation period.

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