Textile Industry Weekly (05.01-05.10)

Hot focus

Overall performance of weaving cluster in April: insufficient orders

Production continues to slow down

In April, the production of enterprises continued to slow down. As of April 26th, the average operating rate of cluster weaving enterprises was around 53%, and the average operating rate of enterprises was around 74%, and the utilization rate of weaving capacity was around 26%.

Live production of hot clothing for flexible production of "light cavalry"

In the Dongguan Humen electricity supplier Industrial Park, the more than 4000 square meter photographic base has been transformed into a live broadcast scene. Nearly 100 apartments have been turned into live rooms. There are more than 300 electric business enterprises in the park. Since March, many of them have begun to broadcast live goods with good results, and orders have soared.

Industry trend

Boom value of China's cotton textile industry in March 2020

Slightly increased, production and marketing has resumed.

In March 2020, China's cotton textile prosperity index was 46.36, an increase of 3.97 compared with February. In March, the purchasing price index of raw materials was 45.60, down 2.92 compared with February; the March production index was 45.14, compared with that of February; it increased by 7.57; the sales index of the 1.11 products was 45.04, increased by 10.82 compared with that of the products; the inventory index of 49.46 products was 49.46, which increased by 1.11 compared with that of the Chinese enterprises; The month increased by 8.91.

Industrial polarization in the first quarter

The annual domestic demand index is expected to reach 57.9.

The Chinese Textile Industry Association launched a questionnaire survey in the industry at the end of March. A total of 240 enterprises submitted questionnaires, and indexed the domestic demand of enterprises. The annual domestic demand index of the enterprises was 57.9, higher than the domestic demand index of the first quarter.

Spread of overseas epidemic

There are three major influences on the domestic textile and garment market.

1. the window period of spring sales is greatly shortened, there will not be any chasing list. The overloading of clothing in spring is a foregone conclusion.

2. orders for clothing in summer need to be observed. Due to the problem of capital flow, it is difficult to see explosive orders growth.

3. the pressure on consumption will be gradually reflected.

Raw material Market

The price of pure cotton yarn has fallen.

The price of cotton yarn continued to drop.

Recently, the price of viscose staple fiber raw materials has risen sharply. At present, the actual central price of viscose staple fiber 1.5 * 38mm is about 9100 - 9120 yuan / ton, or 20 - 40 yuan / ton. Recently, the price of cotton yarn has dropped, and the price of 30S cotton yarn has been reported to be around 12650 yuan / ton, or 200 to 250 yuan / ton. The 40S cotton yarn has reported 13900 to 14000 yuan / ton, or 100 to 200 yuan / ton.

Domestic yarn price is low again, futures prices continue to rise and fall.

(20-24 April 2020)

The national cotton market monitoring system yarn index CNCotton C32S average price 19175 yuan / ton, compared with last week fell 54 yuan / ton, yarn cotton price difference 7751 yuan / ton, compared with last week reduced 17 yuan / ton; cotton yarn futures clearing average price 18621 yuan / ton, compared with last week fell 319 yuan / ton, lower than spot 554 yuan / ton, the difference narrowed 265 yuan / ton last week.

Textile industry is facing difficulties, cotton supply and demand is cautious.

(April 27, 2020)

Since the economic and trade disputes, textile and clothing exports have been blocked, and the number of downstream orders has shrunk dramatically. As of April 24th, the yarn stock of textile enterprises in major regions was 27.1 days, an increase of 0.6 days from last week, an increase of 2.3% in the weekly ring ratio, an increase of 21.5% over the same period last year, and the main closing price of zhengmian was 11460 yuan / ton, far below the cost of lint processing.

The epidemic has a lasting impact on consumption, and production and sales of long staple cotton continue to decline.

(April 29, 2020)

According to the latest report released by the International Cotton Advisory Committee (ICAC) at the end of April, the output of global long staple cotton in 2019/20 was 378 thousand tons, down 20 thousand tons compared with February, down 18% from the same period last year. Egypt's long staple cotton production 80 thousand tons, 9000 tons reduction, the United States Pima cotton output 146 thousand tons, 11 thousand tons reduction.

When the new cotton is planted, there is no big fluctuation in the expected yield.

According to survey data, the total cotton planting area in China this year is 45 million 501 thousand mu, down 5.1 percentage points over the same period. Among them, Xinjiang has an area of 34 million 759 thousand mu, a decrease of 1.6%, and a cotton planting area of 10 million 742 thousand mu in the mainland, with a larger decrease of 14.87%. In the later period, we should pay close attention to the weather. If there is no major weather disaster and the unit yield can be guaranteed, the domestic cotton output in 2020/21 will basically be stable.

Cotton textile manufacturing: lack of single phenomenon is serious, started 5 consecutive drops

According to long Zhong information statistics, as of April 23rd, the cotton textile comprehensive start up rate of 39.94% was around 0.61 percentage points lower than the ring ratio, and the opening rate of textile mills continued to decline. At present, the average starting level of jet enterprises dropped to 42.11%, down 0.67 percentage points from last week.

Policies and regulations

Involving 1 Textile tax numbers, the United States released 200 billion dollars tax increase products twelfth batches exclusion list

In April 22, 2020, the United States Trade Representative Office (USTR) announced the twelfth batch of product exclusion notice under the list of $200 billion plus tariff products, of which 11 batches were related to textiles, involving 48 textile tax numbers. The products excluded were no longer subject to 301 tariff when exported to the United States.

The textile description and HS code excluded are as follows:

1. 6507.00.0000: the hat band of the football helmet, each with a polyvinyl chloride wrapped polyester woven fabric ribbon, a closed foam foam liner and a stainless steel buckle;

2.6507.00.0000: the front and side cushions of the football helmets. The top and bottom of each helmet are covered with vinyl, PVC foam, closed foam foam pad and stainless steel buckle.

The Ministry of industry and Commerce has approved 45 textile industry standards such as projection method for measuring yarn hairiness.

In April 28, 2020, the Ministry of industry and information technology approved 656 industry standards such as the LTE based test method for wireless communication technology base station equipment, including 45 textile industry standards such as "textile yarn hairiness measuring method and projection counting method", and the implementation date is October 1, 2020.

Insight Economics

Affected by the epidemic, Southeast Asian countries have introduced measures to help garment manufacturing industry.

The spread of the epidemic in Europe and the United States has led many international garment brands in Southeast Asia to postpone or cancel orders. To cope with the impact, Southeast Asian countries have launched self rescue actions. Kampuchea has implemented a living subsidy policy for unemployed workers, of which the government pays $40 per month and the factory pays $30. The government stipulates that some garment manufacturers can enjoy a "tax exemption" from six months to one year.

European textile sales and production are expected to drop by more than 50% this year.

Due to the outbreak of the new crown pneumonia outbreak, the European textile and garment manufacturing industry expects that sales and production will drop by more than 50% this year. In addition, 90% companies are facing serious financial constraints, 80% will be laid off temporarily, and 25% companies are considering closing business.

Pakistan begins to resume garment production

It is understood that at present, Pakistan is in a semi closed state, and the government has begun to resume garment production after the textile industry has been excluded from the blockade within the government to ease the pressure on textile workers to survive.

China has become the world's largest garment producer and exporter.

Since China's entry into WTO in 2001, the export volume of China's textile and clothing products has increased by more than four times. At present, China has become the world's largest producer and exporter of clothing. In 2019, clothing exports totaled $151 billion 367 million, of which knitted apparel exports were 60 billion 600 million yuan, down 3.37% compared with the same period last year, and the export of woven garments was 64 billion 47 million US dollars, down 6.69% from the same period last year.

Vietnam's largest textile company intends to suspend wages for half of its workers.

The Vinatex, the largest textile company in Vietnam, is considering whether to decide whether to suspend wages for up to fifty thousand industrial workers. Vinatex has more than 200 factories throughout Vietnam, employing a total of about 100 thousand workers. At present, Vinatex occupies 10% of Vietnam's textile industry.