Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News The third wave of the epidemic may hit India. Cotton and polyester have risen for three days in a row. Are good times coming?

The third wave of the epidemic may hit India. Cotton and polyester have risen for three days in a row. Are good times coming?

India ushered in a new record on June 23. The cumulative number of confirmed cases of the epidemic in India has exceeded the 30 million mark. It is the second country in the world with more than 30 million conf…

India ushered in a new record on June 23. The cumulative number of confirmed cases of the epidemic in India has exceeded the 30 million mark. It is the second country in the world with more than 30 million confirmed cases. Besides India there is the United States.

Rajesh Bhushan, senior official of the Ministry of Health of India, at a press conference on June 22 He said that India has recently discovered a new mutant strain “Delta Plus”, and dozens of cases have been detected in three states, which deserves attention.

In an interview with China Business News, Liu Zongyi, Secretary-General of the China and South Asia Cooperation Research Center at the Shanghai Institutes for International Studies, said that as far as the second wave of the epidemic is concerned, Currently, the epidemic situation has indeed improved in India’s big cities, but the situation in small and medium-sized cities and rural areas is still unclear. He said that the mutations caused by the large-scale spread of the new coronavirus are not only “Delta+”, but also a variety of fungal diseases have been discovered at the same time. These are all factors that may lead to the third wave of epidemic outbreaks.

Under the influence of the epidemic, the “reshoring of orders” in the textile and apparel industry has become a hot topic in the industry

Some textile companies said that due to the impact of the new crown epidemic, the garment industry in India and Southeast Asian countries has been severely affected.

Some orders were transferred to China, and the company’s filament export volume increased by nearly 60% from January to April.

Data from the General Administration of Customs shows that from January to May this year, the country’s textile and apparel exports were US$112.69 billion, a year-on-year increase of 17.3% and an increase of 13.2% compared with the same period in 2019. Among them, textile exports were US$56.08 billion, a year-on-year decrease of 3.1%, and clothing exports were US$56.61 billion, a year-on-year increase of 48.3%. In the month of May, clothing exports were US$12.20 billion, a year-on-year increase of 37.1%; textile exports were US$12.123 billion, a year-on-year decrease of 41.29%, and an increase of 4.1% compared with the same period in 2019.

The epidemic in India continues to spread, bringing a chain reaction to the textile industry chain

Indian textile industry It occupies a pivotal position in the global textile industry and is the second largest textile producer in the world after China. For the Indian economy, the textile and clothing industry is also one of the pillar industries. The textile industry accounts for about 15% of India’s total export revenue.

According to reports, due to the blockade measures during the epidemic, the exports of the Indian garment industry shrank severely. In 2020, India Exports of the apparel industry decreased by 24%. In the new round of the epidemic, related Indian companies have lost a large number of garment export contracts because workers are unable to come to work.

This brings opportunities to China, the world’s largest textile country. A large number of textile orders that had previously been transferred from China to India began to return.

“Affected by the epidemic, the textile industry in India and Southeast Asia has come to a standstill, and some orders have been transferred to the country, bringing some orders to the company.” Vosges Shares (002083. SZ) recently responded to investors on the interactive platform.

The reporter’s investigation found that many textile companies have successively received return orders from Southeast Asia. However, companies are also cautious about this part of orders, because once the overseas epidemic situation improves, the return orders will also leave.

Recently, a reporter from “Daily Economic News” visited the merchants of Shengze Oriental Textile City in Shengze Town, Suzhou City and the local chemical fiber leader Shenghong Group. , some business people told reporters that orders have indeed returned. According to his understanding, some garment manufacturing companies have placed orders until 2022. But at the same time, many merchants, enterprises and industry insiders also said that the surge in sea freight, the appreciation of the RMB, and the rising costs of upstream textile yarns, fabrics and products are still important factors that plague enterprises.

The off-season atmosphere has intensified, and the market will see a surge in the later period

The market off-season is gradually emerging, and many manufacturers’ inventories have increased compared with the previous period. The foreign trade market will not improve in a short time due to the impact of the epidemic in Southeast Asia. Textile bosses have given up hope on the later market.

However, for June, which is the traditional off-season, under the strong support of multiple costs, the market may be about to see a surge.

The commodity market was largely red yesterday. The Wenhua Commodity Index closed at 188.14 in the afternoon, an increase of 2.17 or 1.17% from the previous trading day. Zheng Cotton was the main force Following the trend, it rose across the board for three days. In only two trading days, Zheng cotton rebounded from the lowest point of 15,400 to as high as 15,840, rising 440 yuan/ton. From a technical perspective, 15300 and 15400 have a trend of forming a w in the near future, which may drive cotton prices upward in the short term.

Polyester staple fiber has continued to rise violently, marking the beginning of 2021a-preview-src=”” data-preview-group=”1″ src=”https://www.tradetextile.com/wp-content/uploads/2023/11/20210626103505691.jpg” border=”0 “>

Raja Shanmugam, Chairman of the Garment Export Association of Tirupur, India: International apparel companies will shift clothing orders to our competitors, such as Bangladesh, Vietnam and Cambodia, while Indian companies will be replaced by businesses from other countries.

According to Indian media reports, affected by the epidemic, some multinational clothing retailers have moved 15-20% of their orders to Other countries. During the second wave of the COVID-19 epidemic, the city’s garment industry lost at least about 100 billion rupees, or about 8.7 billion yuan. India’s apparel industry provides approximately 12 million jobs. Industry insiders in India said that the blockade has had a huge impact on the manufacturing industry.

Suffering from rising shipping costs

“I am almost worried to death. One trip The sea freight for the ship is around 200,000 yuan, which is too high, and the shipping company has not shipped the goods yet. It keeps saying that it will be two days or two days later.” In Shengze Oriental Textile City, Li Li, the person in charge of Vinings Textile (Suzhou) Co., Ltd. Yu (pseudonym) told reporters that the company mainly exports anti-epidemic materials and other textile products to Spain. Since 2020, the order situation has been good and the performance is very impressive.

Li Yu said that the company was not too busy in the first quarter of this year and the gross profit margin was relatively good. However, starting from April, the company became busier, but due to shipping Affected by the surge in fees and the appreciation of the RMB, the company’s profits fell by half compared with the same period last year.

The store of Vinings Textile (Suzhou) Co., Ltd. in Shengze Oriental Textile City. Picture source: Photo by reporter Huang Xinlei

In this regard, the above-mentioned industry insiders said that textile export companies faced three major difficulties in the second quarter of this year: the surge in sea freight; Exchange rates are rising and commodity prices continue to rise.

“The appreciation of the RMB is due to the better control of the domestic epidemic, and then the domestic imported inflationary pressure is relatively large, so the RMB The increase has been relatively large since the second quarter, with an appreciation rate of about 2% to 3%. For foreign trade export companies, this part of the appreciation is a loss that they have to absorb themselves.” said an industry insider.

In addition, people in the industry also suggested that for the entire chemical fiber industry, exports only account for about 6% of the total production capacity, so from a company management level , Domestic sales can make the company’s capital flow more frequent, and the economic benefits or safety risks can be guaranteed, but at present, export sales are still relatively “tasteless”.


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