Week Of Textile Industry News (6.11-6.21)

Hot spot aggregation

Look at 01

The prime minister's press conference will explain the key points of "six stability" and "six guarantees", and the textile industry will have great responsibilities.

On May 28th, after the closing session of the three session of the thirteen National People's Congress, Premier Li Keqiang of the State Council attended the press conference at the Golden Hall on the third floor of the Great Hall of the people and answered questions from Chinese and foreign reporters. At the press conference, around the economic and social development of China, "six stability" and "six guarantees" were mentioned by high frequency. The goal of "six stable" and "six guarantees" aims at pointing out the direction for China's current recovery of economy and development under the control of epidemic situation.

People's Livelihood: textile industry will be the main force to ensure employment.

Industrial upgrading: "anti epidemic pioneer" industry indicates more new growth points.

Poverty Alleviation: textile industry contributes to industrial poverty alleviation

Market reform: Textile contains greater industrial advantages and enterprise vitality.

Look at 02

The global garment industry is entering the cold winter. The Chinese market is hard to become a life-saving straw.

In May 27th, I.T (00999.HK) released its 2019 annual financial report. The results showed that the company's revenue was HK $7 billion 719 million, a year-on-year decrease of 12.6%. Adidas's first quarter results in 2020 showed that the company's net sales in the first quarter were 4 billion 753 million euros, down 19% compared to the same period last year; 06288.HK, the UNIQLO parent company, announced the interim report for the 2020 fiscal year. According to the financial report, the comprehensive income of XXX group was 1 trillion and 200 billion yen in the six months from September 1, 2019 to February 29, 2020, down 4.7% from the same period last year.

The world's largest clothing market, China, is expected to shrink by 15% this year, according to OliverWyman.

Industry trend

Look at 01

In May, the textile market was slightly improved and confidence restored.

In May, domestic and foreign cotton prices rose slightly, and the overall trend was relatively stable. In May 28th, the domestic 3128B grade cotton price quoted was 11990 yuan / ton, up 285 yuan / ton from the same month last month. The weaving market has slightly improved, the domestic market has started gradually, and some enterprises' orders have been discharged to June. At present, the overall start-up rate is maintained at about 60%.

　　 Look at 02

In 2020 1-4, the apparel industry fell 11.36%.

In the 1-4 month of 2020, the clothing output of garment enterprises above designated size was 6 billion 432 million, down 11.36% from the same period last year, and the decline was narrowed by 8.93 percentage points compared with 1-3 months. The actual investment decreased by 41.7% compared to the same period last year, a drop of 4.1 percentage points narrower than that in 1-3 months. Operating income reached 362 billion 302 million yuan, down 18.47% from the same period last year, and the decline narrowed by 4.99 percentage points over 1-3 months. The total profit was 12 billion 985 million yuan, down 34.77% compared with the same period last year, the decline narrowed by 8.73 percentage points over 1-3 months. Operating profit margin was 3.58%, down 0.90 percentage points over the same period last year.

Look at 03

In 2020 1-4, the production, sales and profits of the industrial textiles industry increased rapidly.

Affected by the surge in demand for materials for prevention and control of diseases, the production, sales and profits of the industrial textiles industry have increased rapidly. In the 1-4 month of 2020, the industrial added value of the textile industry increased by 33.8%, operating income was 75 billion 200 million yuan, an increase of 3.7%, and the total profit was 7 billion yuan, an increase of 116.7% over the same period last year.

Raw material Market

Look at 01

Domestic cotton prices are narrow and volatile, and the recent trend is still uncertain (25-29 May 2020).

This week, tensions between China and the US were expected to rise, the depreciation rate of the RMB exchange rate increased, ICE futures rose several times in a week, and domestic cotton prices rose slightly, but the amplitude continued to shrink. Import and export of cotton yarn inside and outside the inquiry power shortage, polyester staple fiber prices stable, the downstream fabric orders improvement is not obvious, the existing orders are located in the low price range. The conventional yarn is less than 726 yuan / ton of domestic yarn, and the price of PET staple is 30 yuan / ton to 5820 yuan / ton.

Look at 02

The price of cotton market steadily increased in May.

In May, cotton prices in the domestic market rose steadily, and domestic orders in the downstream cotton textile market improved slightly, and export orders increased slightly. The production and sales rates were better than those in April, and prices also showed signs of stopping. According to monitoring, in May 26th, China's cotton price index (CCIndex3128B) was 11831 yuan / ton, up 330 yuan / ton from the end of last month. Recently, the price of 32 Pure Cotton Combed Yarns fluctuated around 18700 yuan / ton.

Look at 03

China's textile production narrowed in 1-4 months

According to the latest data released by the National Bureau of statistics, the profit of Industrial Enterprises above Designated Size in China decreased by 27.4% from 1 to April in 2020, and the profit margin of textile and garment industry closely related to us was 34.8%. After many years of rapid development, the textile industry has seen an unprecedented "recession" this year.

Look at 04

Domestic and foreign yarn prices narrowed narrowing "cloud" Fu to seek development (25-29 May 2020)

This week, domestic cotton yarn spot prices continued to decline slightly, a record low. The national cotton market monitoring system yarn index CNCottonC32S average price 18745 yuan / ton, compared with last week fell 16 yuan / ton, yarn cotton price difference 7130 yuan / ton, compared with last week reduced 109 yuan / ton; cotton yarn futures clearing average price 19302 yuan / ton, compared with last week fell 30 yuan / ton, higher than spot 557 yuan / ton, the difference narrowed 14 yuan / ton last week.

　　 Policies and regulations

Look at 01

The Customs announced the list of imported children's disqualification, involving H&M, ZARA and so on.

A few days ago, the General Administration of Customs announced the quality and safety of imported children's articles which were found in customs from 1 to May in 2020. It involved 6 categories and 41 batches of imported children's articles, including H&M, ZARA, Lego, Qiao Hu and so on. The imported children's articles which are not qualified for inspection are disposed of according to regulations according to regulations.

Look at 02

Protective performance and comfort of children's mask technical specification

In the national standard GB/T38880-2020 children's mask technical specification, performance indicators related to protective performance include particulate matter filtration efficiency, bacterial filtration efficiency and protective effect. Respirator comfort index includes expiratory resistance and inspiratory resistance index. The two factors restrict each other and play a significant role in the effective wearing of respirators.

Look at 03

Chengdu released the first group standard of melted nonwovens for masks in China

From the Chengdu medical device industry association, the first "T/CDAMEI001 - 2020 masks melt blown nonwovens" was released and implemented in the national standard information platform (www.ttbz.org.cn). It is understood that the standard will be used as a factory inspection standard for melt blown fabric manufacturers, as well as the factory inspection standards for raw materials of mask manufacturers, so as to effectively guarantee product quality to meet market demands.

Insight Economics

Look at 01

Australia's new cotton will soon be shipped to China, and next year's output will be three times this year.

Up to now, most of the new cotton in Australia has been sold to China in advance in 2020. If irrigation water is adequate, the output of cotton in 2021 is expected to increase by two times compared with that of the previous year. In 2020, about 150 thousand packages of new cotton came from the southern valley of New South Wales, and the new cotton processing has already started. The output of Australia cotton is only 550 thousand packs this year. If the water supply situation continues to improve in the next year, the output of Australia cotton may reach 1 million 700 thousand packs, which is three times this year.

　　 Look at 02

The trade friction has played a prelude to the collapse, and the clothing giant has announced its withdrawal from Asia.

Esprit, the US clothing giant, announced that it would close its stores in May 31st and withdraw from Asia. Esprit's departure in China can be divided into the following reasons:

1), the insufficiency of the existing products, and the failure of the National Consumers' demand.

2), financial revenue decline and loss

3), Esprit is one of the many overseas garment giants that have withdrawn from the Chinese market.

4) under the impact of the global epidemic, the clothing giants shut down stores worldwide.

5) China's recovery in the epidemic has led factories in China to return to work.