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    Domestic Demand And Export Pull Textile And Garment Industry Orders Need To Be Cautious

    2020/10/23 18:47:00 0

    Textile And GarmentOrderDomestic DemandExport

    Entering the "golden nine silver ten" sales peak season, driven by domestic demand and export, the clothing industry has survived the "cold winter" and the sales situation has recovered. As a traditional industry, textile and clothing sector recently received hot money, rising 9% in a single month, making the best monthly performance in nearly 14 months.

    At the end of Thursday, 14 textile and clothing stocks rose against the market, taipingniao trading limit, Jujie micro fiber up 5.5%, starting shares, xunxing shares, Hongda hi tech, wanlima, etc. all closed up.

    From the second half of the year to now, the textile and clothing index has increased by 11.32% (former recovery right), the best half year performance since the second half of 2015; from the beginning of this month to the 22nd of this month, the textile and clothing index has increased by 9.05%, which is the best single month performance since March 2019. In terms of individual stocks, Jujie micro fiber rose 98% in the month, wanlima rose 60%, kutesmart increased 55%, taipingniao increased 48%, Bailong Oriental rose 36%, robust medical increased 34%; start-up shares, Pathfinder, Luolai life, GELIS, Fengzhu textile and Jinchun shares rose more than 20%. In addition, although conronda has only increased by 10% this month, it has been up for nine consecutive months.

    This summer, floods in many places in China disrupted the sales rhythm of the clothing industry. Data show that the total retail sales of clothing fell by 2.5% year-on-year in July, which led to the subsequent exceeding expectations. During the "11" double festival holiday, residents' travel and business promotion further boosted the prosperity of textile and clothing. During the golden week, sales in many places showed double-digit growth. In addition to boosting domestic demand, China's textile and clothing export data has been bright recently. According to the latest statistics of the General Administration of Customs of China, from January to September 2020, China's textile and garment exports totaled US $215783.8 billion, a year-on-year increase of 9.3%.

    Some textile and garment export enterprises said that after July, foreign demand orders suddenly broke out, and the quantity of inquiry and delivery increased. There are also enterprises that have received orders have been scheduled to January next year.

    Liu Jie, an analyst with Zhuo Chuang information, pointed out that the epidemic situation in India and other Southeast Asian countries repeatedly affected production, and some Southeast Asian orders were transferred to China. Some domestic textile enterprises reported that home textile orders had been catching up with the same period last year since September, and were still hot in October.

    However, some people in the industry believe that most of the recent surge is "emergency orders". As the current production cost in China is higher than that in India and other regions, it is unlikely that the real landing will happen. Once the production capacity of India is restored, whether the orders can stay in China for a long time still needs to be further observed. Cold winter expectations also add to the market's expectations for winter clothing demand.

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