Alert: Orders Flow Back To The Industrial Chain, And The Textile And Garment Industry Will Usher In High Light Time For A Long Time

Recently, the news that a large number of Indian textile orders returned to China has been widely spread. Shanghai Securities News reporters learned from many interviews that foreign trade enterprises such as cotton yarn export and clothing export did receive return orders.

On the whole, the textile and clothing industry showed obvious signs of recovery in the second half of the year. In addition to the clothing export volume in August is the first positive growth, textile, clothing orders also broke out in the near future. Industry prosperity also transmitted to the upstream market, cotton, polyester, viscose and other textile raw materials commodities also rose.

Indian textile orders transferred to China

"Recently, due to the epidemic situation in India, cotton yarn textile prices are rising, and orders have increased a lot. We have received a lot of transfer orders from India. On the whole, the relevant orders have increased by about 30%. " Jiangxi Xinyu Wanda us line Industry Co., Ltd. a business director told reporters.

"Recently, textile production has been stepped up, and there are indeed some Southeast Asian countries' orders transferring to domestic production lines. Because Myanmar, Cambodia and other countries have taken anti epidemic measures such as sealing off their countries, some European and American customers have recently been actively contacting us and transferring their orders to China. " The person in charge of a textile export company in Shanghai told reporters.

The reporter learned that the transferred orders include cotton yarn and other textile raw materials, as well as simple categories such as towels and bed sheets to meet the demand of supermarkets. Moreover, the orders of production lines in Southeast Asia of China's enterprises have also shifted to domestic production.

According to public information, India is the world's largest cotton producer and jute producer, with yarn production capacity accounting for 22% of the world. Recently, more than 70000 new cases have been confirmed in a single day in India, and the cumulative number of confirmed cases has also exceeded 7 million, ranking second in the world. India's cotton processing and export, cotton gauze production and other entire industrial chain have been strongly impacted.

At present, only about 30% of the garment export orders from Bangladesh and India have been sent to China.

It is reported that many retailers in Europe and the United States have adopted the practice of transferring orders for production in order to ensure the supply of goods in peak seasons such as Thanksgiving and Christmas. The person in charge of the above-mentioned Shanghai textile export enterprises told reporters that the current order volume gradually recovered to the pre epidemic level, and even increased.

Clothing exports showed positive growth for the first time in August

Industry insiders said that India's demand for transferring orders to China will not be long-term, and the textile industry as a whole is also facing price factors such as rising raw materials and RMB appreciation, so the total amount of orders in the whole year may still decline.

However, it is undeniable that the textile and garment exports ushered in signs of recovery in the near future. Many textile export enterprises told reporters that since July, foreign demand orders suddenly broke out, the number of inquiry and taking goods increased, and the orders of some enterprises were arranged to January next year.

The person in charge of Shanghai garment export told reporters: "at present, the decline of the company's clothing export is narrowing. Since August, the demand for replenishment of inventory in the European and American markets has increased. In September, many customers asked for supplementary orders and asked if there were any inventory cancelled by other customers. They bought and sold them directly."

The export volume of National Textiles increased by US $16.28 billion for the first time, with a year-on-year growth of US $2.47 billion.

The above signs of recovery also affected the A-share market. In recent days, the textile and clothing sector ranked first. On the afternoon of October 15, Xinye textile and Bailong Oriental stock were trading.

Cotton, polyester, viscose and other raw material commodities rose sharply

With the strong trend of textile and polyester materials, the overall demand for cotton and viscose is strong.

According to wind data, as of October 15, the average price of domestic cotton was 14263.08 yuan / ton, which has risen by 12% since the beginning of September, reaching a new high since August last year. Futures market, Zheng cotton main contract rose more than 8% this week.

Fang Huiling, a senior agricultural product analyst at Dongzheng Derivatives Research Institute, said that at present, the demand of cotton market has improved, and orders have increased significantly compared with the previous month. The low inventory of textile products and the rapid recovery of upstream and downstream demand have caused the current hot market.

"When I investigated the cotton textile industry in Shandong and Henan in late September, it was found that the inventory of cotton and cotton yarn was generally low in textile enterprises. During the period from September to the end of the national day, orders increased significantly. Low inventory, increased demand and the strength of upstream raw materials led to a sharp rise in cotton yarn prices, up from 500 / ton to 1000 yuan / ton. Grey cloth factory line up for goods, grey cloth prices rise. Printing and dyeing factory also spread orders full, full load operation news. " Fang Huiling said.

According to several industry insiders, the improvement of textile enterprises' orders comes from the domestic demand of "double 11 Shopping Festival" on the one hand, and the increase of foreign trade orders on the other hand, including the transfer of some orders from India to China. In addition, the "cold weather" also added to the market demand.

Viscose staple fiber and polyester staple fiber, which are the raw materials of cotton yarn, are also in a hot market. The main contract of polyester staple fiber futures listed on October 12 rose for four consecutive trading days, with the cumulative increase of more than 8%. On the spot, wind data showed that as of October 15, Jiangsu Shengze's viscose staple fiber and polyester staple fiber quotation were 10150 yuan / ton and 5750 yuan / ton, respectively, which had increased by more than 19% and 6% compared with the beginning of September.

Zhang Yang, an analyst with Zhuo Chuang information, told Shanghai Securities News that the rise of polyester staple fiber was driven by many factors. First of all, traders, downstream market centralized replenishment, so that the enterprise inventory to a low level. Secondly, India's yarn production capacity accounts for about 22% of the world, and some of its terminal orders are transferred to China. Thirdly, in recent years, there is a "coldest winter" expectation, and the domestic just needs to improve, and the average operating rate of weaving Market in October is up.

"In the near future, cotton, polyester, viscose and other staple fiber products have increased, and the prices of some yarns have risen rapidly, forming an overall strong trend in the cotton spinning market." Zhang Yang said, "it is worth noting that due to the repeated overseas public health events in autumn and winter, it is difficult to guarantee the continuity of terminal textile orders."