The Wool Spinning Industry Is Still Running Hard In April.

In 3 and April, the production of wool yarn was showing a recovery trend. In April, the monthly output of wool (Mao Shaxian) increased by 11%. 4, the year-on-year decline in monthly output narrowed by 6 percentage points compared with March, narrowing by 28 percentage points over 1~2 months. In 1~4 months, the gross output of wool yarn decreased by 16% compared with the same period last year, or 9 percentage points.

However, the production of wool fabrics has not recovered during the same period, and the monthly output has continued to decline. In April, the monthly output of woolen fabrics fell by 5%. In 1~4 months, the gross output of wool fabrics decreased by 25% compared with the same period last year, and the decline was further deepened.

The production of wool yarn is mainly used for knitted garments, and wool fabrics are intermediate products of woven garments. From these two products, the recovery of woolen knitted apparel market is faster than that of the woven garment market.

Fig. 12019-2020 monthly output of Mao Shaxian

Monthly output changes of wool fabrics in 2019-2020 years

Source: National Bureau of Statistics

Since the outbreak of the epidemic, domestic sales of textile and clothing products have dropped significantly. According to the National Bureau of statistics, in the first quarter, the per capita clothing expenditure of the national residents was 369 yuan, down 17.8% from the same period last year, accounting for 7.3% of the per capita consumption expenditure, representing a 0.8 percentage point decrease over the same period last year. 1~4 retail sales of clothing, shoes and hats and needle textiles decreased by 29% compared with the same period last month, which was 3.2 percentage points lower than the 1~3 month decline. In order to make up for the large number of shops shutting down, the textile enterprises generally strengthen the construction of online channels. In 1~4 months, online retail sales decreased by 12% compared to the same period last year, narrowing by 3.1 percentage points compared with the 1~3 month decline. Since the beginning of this year, group purchasing of wool products has also been postponed for more than 3 months.

According to customs data for 1~4 months, the total export volume of raw materials and products of wool textile products was 2 billion 200 million US dollars, down 27.7% from the same period last year. The year-on-year decline continued to expand compared with the most serious period of domestic epidemic situation in 1~2 month. Among them, the export volume of all kinds of wool fell by 34% compared with the same period last year, and the export volume of all kinds of cashmere products dropped by 25%, showing a further expansion than the decline in 1~2 months.

From the perspective of upstream and downstream industry chain, the impact of final product exports is more than that of intermediate products. In 1~4 months, the export volume of wool knitted garments, woollen woven garments and blankets fell by 34%, 35% and 26%, respectively, but export prices were relatively stable. Over the same period, the export volume of wool and wool yarn decreased by 6% and 15% respectively, but export prices fell faster, down 27% and 16% respectively over the same period. Artificial fur fell 17% year-on-year, but export prices rose rapidly. Exports of wool fabrics also declined rapidly, and exports fell by 35% over the same period last year.

From the point of view of export, the main consumer market of wool spinning continues to show a downward trend. The two major markets of the European Union and the United States were affected by the epidemic, causing China to continue to accelerate its decline in its wool textile exports, down 34% and 36% respectively over the same period last year, all above the average level of decline. Other major export markets in Asia showed a narrowing of the decline, while ASEAN, Japan, China, Hongkong and Korea fell by 24%, 20%, 37% and 20% respectively.

Figure 22020 export situation of wool textile products in main export areas in 1~4

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In 1~4 months, there were 436 enterprises in the above 880 wool textile and dyeing and finishing enterprises, with a deficit of 47% and a decrease of 1~2 percentage points, but still 14 percentage points higher than the average level of the textile industry in the same period. Total operating income in the 1~4 months was 31 billion 700 million yuan, down 26.7% compared with the same period, or 7 percentage points higher than the average level of the textile industry. The average profit rate of the industry is 2%, which is 1.5 percentage points lower than that of the textile industry. It is obvious that the production and operation of wool textile enterprises is more difficult. The level of industry benefit index is basically consistent with that of enterprises in the first quarter of resumption of production and recovery survey. The 3~4 month data showed no obvious improvement compared with the 1~2 month data.

In 1~4 months, the import volume of wool was 79 thousand tons, down 23% compared with the same period last year, and the import price fell by 12% over the same period last year. Most of the gross imports of wool countries showed a decline. Imports of wool from Australia, New Zealand, Uruguay and the United Kingdom fell by 22%, 34%, 41% and 27% respectively. South Africa's imports of wool fell by an increase of 58% over the same period of the same period, due to the stagnation of foot-and-mouth disease in the same period of 2019. Since April, cashmere market has increased and cashmere prices have risen slightly. On the whole, the consumption of woolen raw materials has been restored to a certain level over the most severe 1~2 months in China.

At present, the situation of epidemic prevention and control has been improving continuously, and the order of production and life has been quickening and resuming. However, the global epidemic prevention and control situation is still grim, and the overall economic restart is facing challenges. It is expected that the income of wool textile enterprises in the first half of the year will fall by more than 20%. Looking back over the past five years, the international wool textile consumer market has continued to decline. The consumption of final wool products of the major woollen textile products in Europe, the United States and Japan has declined from 15% to 30%. With the fluctuation of raw material supply, China's wool textile industry has been in the adjustment and fluctuation period in recent years. The operating income and profit level of the industry continues to decline, and the number of enterprises continues to decrease. Enterprises that survive or adapt to the situation are eliminated or withdrawn from the industry.

In the May 20th eighty-ninth International Wool Textile Conference (Internet teleconference) market information forum, President Peng Yanli of the China Wool Textile Industry Association, entitled "post new crown epidemic period, the status quo and future of China's wool industry", reviewed the situation of China and China's wool textile industry responding to the new crown this year. As stated in the statement, the wool textile enterprises may be the most difficult stage since twentieth Century, and this stage will continue.