Domestic Textile Industry Is Still Facing Severe Situation.

The epidemic has been going on for nearly half a year. Although domestic production has returned to normal, the domestic textile industry is still facing a grim situation, especially in the newly diagnosed cases in Beijing. Last week, China's cotton net reporter went deep into the Henan textile industry gathering area, and visited many textile enterprises such as Zhengzhou, Xuchang, Luohe, Shangqiu, Zhoukou, Nanyang and so on. They traveled more than 1600 kilometers, only to uncover the mystery of production and marketing of textile enterprises under the epidemic situation.

Henan is an important yarn production base in China. The annual average yarn output ranks third in the country, of which the output of pure cotton yarn is only inferior to that of Shandong. The epidemic has caused great changes in cotton yarn products and markets in Henan. Foreign trade export enterprises have greatly reduced orders, and production and operation pressure is heavy. While traditional domestic enterprises are keeping normal production, the impact of the epidemic is relatively limited.

Enterprises mainly produce 21S, 32S, 40S and other low-end cotton yarn, and products are mainly sold domestically. Since the outbreak of the epidemic, the production and marketing of enterprises has been very stable, and there has been no stagnation.

For textile enterprises to enter the traditional off-season, whether they are worried about future sales, the domestic demand market is stable, and is not worried about downstream orders. After all, China has a large market of 1 billion 400 million people.

Traditional domestic demand enterprises are normal in production and marketing, and foreign trade enterprises are facing great pressure. According to the latest statistics of the General Administration of Customs of China, in May 2020, the export volume of textiles and clothing was 29 billion 554 million US dollars, an increase of 38.36%, of which clothing (including clothing and accessories) exports amounted to US $8 billion 905 million 700 thousand, down 26.93% from the same period last year. In 2020 1-5, the total export volume of textiles and clothing in China was 97 billion 965 million US dollars, down 0.80% from the same period last year, of which the total export volume of clothing was 38 billion 213 million 100 thousand US dollars, down 22.80% from the same period last year. Statistics show that although the foreign trade situation has recovered, export pressure is still very large.

At present, the stock of combed yarn is obviously higher than that of combed yarn. The main reason is that the finished products of Combed Yarns belong to medium and high end products, mostly exported to foreign trade, and domestic consumption is limited. Although the export orders have been restored, they are limited in quantity and have little effect on the market. Influenced by the spread of foreign epidemic situation, foreign trade orders still face great uncertainty. In addition, nowadays, enterprises mainly take the order of autumn and winter, and the finished products of the carding yarn are more heavy, which cater for seasonal characteristics, while the combed yarn is light and thin, but is subject to seasonal restrictions.