Economic Operation Of Industrial Textiles In The First Half Of 2020

In the first half of 2020, facing the severe test brought by the new pneumonia epidemic and the complex and changeable domestic and foreign environment, China's economy first fell and then rose, the second quarter economic growth turned from negative to positive, and the economic operation showed a steady recovery trend. In the face of the epidemic situation, China's industrial textiles industry has made great efforts to ensure the production of masks, medical protective clothing, disinfection wipes and related raw and auxiliary materials, which has made an important contribution to the phased victory of the fight against the new crown pneumonia epidemic, and promoted the overall operation of the industry to be positive. ‍

According to the data of the National Bureau of statistics, the industrial added value of industrial textiles industry will increase by 50.7% from January to may in 2020. According to the survey of 224 enterprises in the boom zone, 73 enterprises in the first half of the year are in the boom range.

1、 Production and investment continued to grow

According to the research of the association, the domestic market demand index of the industry in the first half of the year was 63.5, and the overseas market demand index was 43.8. The epidemic situation has a great impact on the demand of overseas market. Among the surveyed enterprises, 59.4% of the enterprises said that the domestic market demand increased, 15.2% said it remained stable, and 25.4% thought that there had been varying degrees of decline; while for the overseas market demand, 30.2% of the enterprises said the growth, 19.0% of the enterprises said that the change was not obvious, and more than half of the enterprises thought that there were varying degrees of shrinkage.

In the first half of the year, anti epidemic materials and related raw and auxiliary materials became the main growth point of the industry market demand. The Association survey showed that the production index of the industry in the first half of the year was 62.7, which was relatively high. According to the data of the National Bureau of statistics, from January to may, the output of nonwovens from enterprises above designated size was 2.029 million tons, up 2.46% year on year. While the domestic epidemic situation became stable, the output of nonwovens gradually returned to natural growth. From January to may, China exported 412000 tons of nonwovens, an increase of 0.78% year-on-year, and 66000 tons of imported nonwovens, a year-on-year increase of 30.38%.

In terms of fixed assets investment, according to the association's survey, 66.52% of the enterprises interviewed said that they had new project investment plans in 2020. Affected by the epidemic situation, 42.95% of the enterprises with investment plans have implemented investment projects in the first half of the year, 28.86% of the enterprises will implement the investment projects according to the plan in the second half of the year, 25.5% of the enterprises said that the implementation of the projects would be postponed, and the decision could be made depending on the impact of the epidemic situation. Only one enterprise said that the investment plan had been cancelled.

2、 The economic benefit differentiation of the industry is increased due to the epidemic situation

According to the statistics of the national textile industry, the total profit of the textile industry increased by 21.26% to 21.29% over the same period of last year, and the total profit of the textile industry increased by 13.29% to 21.29% compared with that of the state-owned enterprises in the same period of the same period.

However, it should be noted that in the first half of the year, the loss area of the industry was 18.06%, and the loss amount of loss making enterprises increased by 7.31% compared with the same period of last year. Although the production of anti epidemic materials has promoted the improvement of the overall efficiency of the industry, enterprises outside the industrial chain of anti epidemic materials are still greatly affected. The survey results of the association also confirm the relevant data. In the first half of the year, the industry's income index was 65.6, and the profit index was 61.2. Among them, the income index and profit index of medical textiles and nonwovens coil enterprises are 72.0 and 69.5 respectively, while the income index and profit index of enterprises in other fields are only 51.2 and 51.7. According to the prosperity degree of various fields in the industry, the prosperity degree of medical and health, safety protection, filtration and separation, nonwoven coil, equipment and accessories is relatively high, among which the prosperity index of medical and health field engaged in the production of anti epidemic materials reaches 85.9; However, the prosperity index of rope net, string belt and interlining is relatively low, and the prosperity index of interlining field is below 50.

Figure 1 prosperity index of sample enterprises in the first half of 2020

(fields less than 10 samples are not shown)

Source: China Industrial Textiles Association

As an important raw material of anti epidemic materials, nonwovens industry enterprises actively resume production after the epidemic. From January to may, nonwovens enterprises above designated scale achieved 56.25 billion yuan of business income, with a total profit of 9.39 billion yuan and a profit margin of 12.21%, an increase of 7.43% over the same period of last year; The operating income and total profit of textiles for medical and health, safety protection and filter textiles increased by 11.72% and 93.13% respectively year-on-year. The profit margin was 10.76%, with an increase of 4.54 percentage points. Compared with the same period of last year, the total revenue of corduroy, corduroy and corduroy decreased by 47.47% and 13.2% respectively, compared with the same period of last year.

3、 Anti epidemic materials promote export scale

According to the data of China Customs, from January to may 2020, China's industrial textiles industry exports a total of 34.29 billion US dollars of various commodities, an increase of 202.62% year-on-year. Among the main export products, the export value of masks reached 22.56 billion US dollars, the export value of nonwoven protective clothing was 2.06 billion US dollars, accounting for 65.78% and 6% of the total export value of the industry, respectively. The export volume of nonwovens and industrial glass fiber products increased by 7.19% and 0.60% respectively year-on-year; However, the export volume of industrial coated fabric, sail, diaper sanitary napkin and cord (cable) belt decreased by 18.67%, 18.62%, 5.11% and 3.05% respectively. Imports of nonwovens and protective clothing were $307 million and $307 million, respectively.

As for the main export markets, due to the epidemic situation in many European countries, China's exports to the EU reached 10.45 billion US dollars from January to may, becoming China's largest export market. Among all kinds of export products, masks and medical protective clothing accounted for 87.32%. China's exports to the United States reached 6.83 billion US dollars, of which masks and medical protective clothing accounted for 80.74%. The export to Germany grew rapidly, mainly due to Germany's greater efforts to prevent and control the epidemic situation, with the export volume reaching 3.13 billion US dollars. The proportion of masks and medical protective clothing exceeded 90%. China's exports to countries along the belt and road reached 8.65 billion US dollars, up 100.56% year on year.

4、 Summary and outlook for the whole year

In the first half of 2020, the production, sales, investment, import and export of China's industrial textiles have maintained a high growth rate, reflecting the industry's strong toughness, responsibility and ability to serve all sectors of the national economy. In the first half of this year, we need to track the impact of the epidemic situation on the development of the textile industry objectively.

At present, China's epidemic situation has been fundamentally improved, the economic and social operation has gradually returned to normal, and the effect of macro policy has been further revealed. In the second half of the year, the domestic market demand for industrial textiles for non anti epidemic materials will be restored; the global epidemic prevention and control situation is still grim, and the overseas market demand for non epidemic prevention materials will continue to decline, but the decline rate will be slowed down. According to the research of the association, the domestic market demand index of the industry in the second half of the year is 62.8, and the overseas market demand index is 48.9. It is expected that the main economic indicators of China's industrial textiles industry will continue to maintain a high growth rate in the second half of the year. The production, sales and export of the industry will tend to balance in the adjustment. The differentiation of economic benefits between the field of anti epidemic materials and that of non anti epidemic materials will be narrowed, and the whole industry will be in a relatively stable development state.