The Textile Market Is Still Under Certain Pressure Due To The Lack Of Sustainability Of The Market

In October, the cotton industry will face multiple shocks in the future.

Driven by the rise of raw material prices in October, enterprises actively replenished the warehouse, resulting in a tight spot sales. Low inventory and improved sales led to a rebound in upstream raw materials. In particular, the sales orders of domestic and foreign enterprises are well arranged in November. Of course, there are also market analysis, foreign epidemic led to the return of orders. In fact, most orders are consumer necessities, and the profit margin is limited. The most important thing is that the price of raw materials fluctuates greatly, which brings risks to the operation of enterprises, which makes spinning enterprises dare not accept long-term orders.

After all, there are still questions about whether the textile enterprises can continue to enter the new season after receiving a large number of orders. Now the data of the third quarter is getting better, which is in the past, and the future is still uncertain. As for the transfer of foreign orders to China, this also needs to be treated with caution. The orders mentioned above are mainly consumer necessities. How long this part of orders can last in the future is also worth paying attention to. Under the premise of relatively certain supply, consumption is still full of variables.

With the fall of international cotton price, the high price of external yarn transaction from hot to cold, the lower reaches of Guangdong, Jiangsu and Zhejiang gray cloth orders slightly decreased compared with last week, the price of pure cotton gradually stopped rising steadily; polyester staple fiber price fell with the trend of crude oil and raw material PTA. Therefore, the short-term cotton market is still facing certain pressure.

In September 2020, China's textile and clothing exports reached 28.37 billion US dollars, a year-on-year increase of 38.5%. Among them, the textile export was US $13.15 billion, with a year-on-year increase of 34.67% (the export of medical supplies helped the textile export increase greatly), which still maintained a large growth rate; Clothing exports reached US $15.22 billion, up 3.15% year-on-year, the second positive in the year (public health events led to a year-on-year decline in seven months from January to September this year).

In October, some foreign textile and garment orders returned to China. China's stable production capacity and mature industrial support ensure the competitiveness of China's textile and clothing industry at this stage. In the special stage of the peak of foreign public health events, Chinese textile enterprises have the advantage of competing with foreign counterparts. It is speculated that the export situation of China's textile and clothing is still optimistic in the short term.

In October, the domestic trade orders dominated by the "double 11" increased, and the textile market improved. The most direct manifestation was the rapid rise of loom operating load to the peak within 8 years, and the delivery period of printing and dyeing factory was extended to 15-20 days.

In October, the domestic loom operating load rose to 93.94%, 16.74% higher than that at the end of September. The rapid rising trend of loom starting load in October was clear. The seasonal rush order market dominated by "double 11" domestic trade orders appeared, which helped the winter fabric de stocking, directly driving the loom operating load to a new high in nearly eight years.

On the whole, the improvement rate of China's textile market is lack of sustainability. Under the background of the aggravation of foreign public health events, the export resistance will increase in the future.

China should take advantage of the stable conditions of resuming production to expand the advantages of textile and clothing industry, enhance the development of medium and high-grade fabrics and advanced production technology, and compete with foreign counterparts with obvious labor advantages.