Moving Forward In The Turning Point And Challenge -- The Operation Situation Of Wool Textile Industry In 2022

In the year of 022, the world economy was still in a downturn, the epidemic situation in the whole year fluctuated many times, and the international political situation had a profound impact. The development of the wool textile industry experienced a sudden turning point and unexpected challenges. The situation gradually slowed down throughout the year, and the quality and efficiency level of operation tended to decline. In the difficult and volatile situation, the industry insists on pioneering and innovation, stably releases the development toughness, and achieves new achievements in the development of the industry in complex situations.

1、 The negative pressure fluctuation of wool spinning production overcame the pressure to achieve stability throughout the year

Affected by the pressure of economy and epidemic situation, the production situation of wool textile products fluctuated, with two obvious fluctuations in the second quarter and the fourth quarter of the year. Among them, the wool yarn is greatly affected by fluctuations. The monthly production level in April, October and November all declined significantly. From January to November, the wool yarn output of enterprises above designated size declined slightly, by 0.8%.

Wool fabric production is also under pressure, and the cumulative output growth rate has declined significantly since the fourth quarter. However, according to the cumulative data from January to November, the output of wool fabrics increased by 4.3% year on year, which has recovered to the pre epidemic level.

2、 The domestic consumption market is under pressure, and exports support the growth of the wool textile market

In 2022, under the pressure of short-term impact such as the epidemic situation, the domestic textile and clothing consumption market will also show two obvious fluctuations in May and November, respectively, and the textile and clothing consumption will be affected more than the retail of other social products.

In 2022, the consumption situation of wool textile products in the domestic market will slow down significantly. Observe the domestic and foreign market of wool products. In 2022, the proportion of domestic sales of wool products will decline. As of November, the proportion of domestic sales of wool textile products was about 57%, about 5 percentage points lower than that of domestic sales of wool textile products in 2021.

The export market will become an important support for the consumption market of wool textile products in 2022. From January to November 2022, the cumulative export of wool textile raw materials and products (excluding carpets) will reach 9.6 billion US dollars, up 7.1% year on year. The main wool textile intermediate products grew rapidly. From January to November, the export of wool fabrics was 480 million US dollars, up 50% year on year, the export of wool slivers was 470 million US dollars, up 42% year on year, and the export of non wool fabrics was 440 million US dollars, up 50% year on year.

The United States, the European Union, ASEAN and Japan are still the main export destinations of wool products, accounting for 23%, 20%, 14% and 7% respectively. The importance of Hong Kong as an entrepot market has been declining and has dropped to 2%. Taking the Belt and Road Initiative as an opportunity, the development of diversified wool textile trade has been further strengthened. From January to November, the export of wool textile products to the regions along the Belt and Road increased by 2.8% year on year, especially the export trade with the ASEAN region. From January to November, the export of wool textile products to the ASEAN region grew by 9.9% year on year.

3、 Enterprises operate inefficiently, innovate and create to consolidate industry profitability

The market fluctuation and negative production pressure will put great pressure on the revenue of wool textile enterprises in 2022. From January to November, the total operating income of wool textile and dyeing and finishing enterprises above designated size dropped by 3.9% year on year, the turnover rate of total assets was 0.92 times/year, down 9.1% year on year, and the turnover rate of finished products was 5.9 times/year, down 13.6% year on year. The level of sales and turnover efficiency of enterprises dropped significantly.

However, through product innovation and industrial upgrading, enterprises increased their added value and ensured the profit level of enterprises in the industry. From January to November, the average profit rate of wool textile, dyeing and finishing enterprises above designated size was 3.74%, maintaining the level of the previous year.

4、 The international industrial layout has changed, and the wool textile industry has entered a new development pattern

2022 is an extraordinary year for China's development and a special year for China's wool textile industry. With the change of epidemic policy and the resumption of international exchanges, the wool textile industry has undergone or is undergoing new changes.

1. The structure of the global wool textile industry chain has changed, and the capacity transfer has gradually begun

In the past five years, the structure of the global wool textile industry chain has changed, and the processing capacity of middle end products has gradually begun to transfer to Southeast Asia and other places. The transfer of production capacity is reflected in the changes in the main destinations of China's export wool tops. From January to November 2022, China will export 3418 tons of wool slivers to ASEAN, a year-on-year increase of 43%, accounting for 9% of the export volume of wool slivers, an increase of 6 percentage points over 2018. India imported 16310 tons of wool slivers produced in China in 2021, accounting for 39% of the wool export in that year, becoming the largest export destination of wool slivers in China.

With the continuous development of international distribution of wool spinning capital, the production capacity of wool yarn and even wool fabric will be further transferred in the future.

2. The final consumption market of wool textile is still in the recovery range, and the status of China's wool textile products remains the same

In 2022, the main consumer markets of wool textile products, such as the EU, the United States, and Japan, will show rapid growth. From January to November 2022, the total amount of wool textile products imported from the US market will be 4.1 billion US dollars, with a year-on-year growth of 30.5%, while the total amount of wool textile products imported from the Japanese market will be about 1.3 billion US dollars, with a year-on-year growth of 14.8%. From January to September, the EU's total imports of wool textile products outside the region were 3.6 billion euros, up 45.6% year on year. However, the consumption scale of several major wool textile markets is still lower than the pre epidemic level.

The share of China's wool textile products in Europe, the United States, Japan and other major wool textile consumer markets has not changed much. From January to November 2022, China's wool textile products accounted for 29% and 40% of the total wool textile products imported from the United States and Japan; From January to September, China's wool textile products accounted for 38% of the EU's total imports of wool textile products, an increase of 4 percentage points year-on-year. Except for the impact of the epidemic in the fourth quarter, it was basically stable.

3. Wool spinning scale and raw material structure adjustment, facing new development pattern and potential market

From 2019 to 2022, China's annual total import of wool will not exceed 300000 tons. In addition to the impact of epidemic transportation, there are also factors such as the adjustment of the scale of the wool textile industry and changes in the structure of raw material processing. Facing the new situation and new pattern, industrial innovation and development and industrial upgrading are important driving forces for the development of new markets.

In the new year, the wool textile industry will face a new situation of development. Various unstable factors still exist, and the development pressure is still outstanding. Empowerment, promotion, innovation and creation will still be the theme for the industry to seek new development.