According to foreign media reports, on May 10, the U.S. president said that some tariffs on Chinese imports might be lifted in the near future to help control rising consumer prices in the United States. It also said the White House was reviewing the "punitive measures" implemented during the previous administration, which raised the prices of everything from diapers to clothing and furniture, and might choose to completely eliminate tariffs later. After many years, from the Federal Reserve's interest rate hike again to the market risk caused by the interruption of global commodity supply chain, it has brought obvious impact on global commodities and even the textile industry.
In recent years, due to the spread of the epidemic in the world, the economy of various countries has declined, and the consumption of terminal textiles and clothing has declined. The marginal decline of people's consumption expenditure on clothing makes many well-known chain clothing stores withdraw from the market. On the other hand, inflation has led to the price rise of bulk commodities, and the input costs of various production factors such as chemical fertilizer, pesticide, plastic film and ground rent have increased, resulting in the price rise of many textile raw materials such as cotton and polyester. As a long vertical extension of the textile industry chain, in the case of the rapid rise in the prices of upstream end products, the downstream consumption is weak, and it is unable to transmit the impact of the cost upward in a timely manner. Finally, the profits of many processing enterprises are swallowed up, and the enthusiasm of production is significantly reduced. For example: Cotton upstream ginning enterprises due to seed cotton prices soared, resulting in lint costs and market prices hanging upside down, resulting in large losses; Spinning enterprises also because of the price of cotton raw materials rose, and yarn prices difficult to rise, operating profits beyond their means. The upstream and downstream industries can not achieve self-regulation through marketization in a short period of time, which makes the textile industry appear the abnormal scene of "peak season is not prosperous".
In addition to the poor transmission of profits between the upstream and downstream industries, there are also some problems. In the past year, the textile markets in Vietnam, India and other places have been booming, but some domestic foreign trade orders have been lost, and the supply chain of European and American consumer markets has tilted, forcing some domestic textile enterprises to adjust their industrial layout and planning. Although the export tariff of textiles exported to the United States is expected to be cancelled, inflation and changes in global textile trade flow may indicate that the global textile market structure may be facing reconstruction, and the market participants may need to make more long-term plans in advance.