Market Analysis: Expected Improvement In Global Textile Trade

According to the 16th global textile industry survey conducted by the International Textile Federation (ITMF), in September 2022, the global textile industry's operating conditions deteriorated, and the global new order index, undelivered order index and operating rate all decreased. Although the future expectation is still negative, there is a trend of improvement.

The survey shows that although the operation of the textile industry in Asia has improved, it is still relatively the worst. At present, the performance of all sectors is negative, and the situation of spinning mills has dropped to an unprecedented low. The positive sign for the future is that although the expectations of the global garment industry are still negative and the difficulties will continue, the expectations for September have stopped further falling. Expectations for South Asia, North America and Central America, as well as Africa, have improved, and global spinning mills' expectations for March 2023 have improved, indicating that the current difficulties may be alleviated.

Compared with the survey in August, the number of new orders in the textile industry further decreased, which is consistent with the deterioration of the industry's operating conditions. New orders for textile companies in North and Central America, especially in South America, have increased, while textile companies in Asia continue to struggle and the order situation is very unsatisfactory. At the same time, the number of undelivered orders has generally declined in all regions, with the exception of South America, where new and undelivered orders are on the rise. In each link of the industrial chain, only dyeing and finishing and knitting / weaving manufacturers had a small increase in the undelivered orders, while all other links had a decrease. Although global plant start-up rates declined in September 2022, South America saw an increase. The start-up rate of global fiber manufacturers has steadily declined, and the decline trend of home textile manufacturers seems to have reversed.

In the next six months, weak demand, high prices of raw materials and energy, and inflation are the main challenges facing the global textile industry. At the same time, the cost of transportation has been greatly reduced, and the geopolitical problems have been obviously upgraded in recent two months.