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    Part Of Overseas Orders Moved To Domestic Textile And Garment Industry Chain Recovered

    2020/10/20 22:54:00 0

    PartOverseasOrderDomesticTextileClothingIndustry ChainWhole Line

    Recently, the news that a large number of Indian textile orders flow back to China has been widely spread. Shanghai Securities News reporters learned from their work that some foreign trade enterprises such as cotton yarn export and garment export have received some 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.

    Overseas textile orders transferred to China

    "Recently, due to the epidemic situation in India, the price of cotton yarn textiles is rising, and the orders have also 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 Wire Industry Co., Ltd. business head told Shanghai Securities News reporter.

    The person in charge of a textile export company in Shanghai disclosed that recently, there were indeed some Southeast Asian countries' orders transferring to domestic production lines. "Because Myanmar, Cambodia and other countries have taken anti epidemic measures, some European and American customers are actively contacting us and transferring orders to China."

    It is understood that the transferred orders include cotton yarn and other textile raw materials, as well as simple categories such as towels and bed sheets, which mainly supply supermarket demand. Before that, the orders of Chinese enterprises in Southeast Asia production lines also shifted to domestic production.

    India's textile production occupies an important position in the world. 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. Affected by the epidemic, India's cotton processing and export, cotton gauze production and other entire industrial chain have been strongly impacted.

    The business director of another large garment export enterprise in Shanghai told the Shanghai Securities News that at present, India's relevant production capacity may be only about 30%. Some customers have diverted about 23% of garment orders to Bangladesh and China, and the company has also received the return orders of knitted sweater from Bangladesh.

    Clothing exports showed positive growth for the first time in August

    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 winter expectation also adds to the market's expectation of winter clothing demand.

    However, some experts pointed out that the long-term demand will not be transferred from India to China, and the textile industry as a whole is also facing price factors such as rising raw materials and RMB appreciation, so the total order volume of 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 the above-mentioned Shanghai garment export enterprises said that at present, the decline of the company's clothing export is narrowing. Since August, the demand for replenishment of inventory in European and American markets has increased. In September, many customers asked for replenishment and asked if there was any inventory cancelled by other customers.

    Official statistics also show that in August, China's textile exports amounted to US $14.72 billion, up 47% year-on-year; and clothing exports were US $16.21 billion, up 3.2% year-on-year, achieving the first positive monthly growth in the year.

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

    With the overall recovery of the textile and clothing industry, the market demand tends to be strong, and the prices of cotton, polyester, viscose and other raw materials have a strong trend.

    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 created the current hot market. In addition, viscose staple fiber and polyester staple fiber, which are the same raw materials of cotton yarn, also have an abnormal hot market.

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