Data released by the General Administration of Customs of China show that in September 2020, China’s textile and clothing exports reached US$28.37 billion, a month-on-month increase of 18.2%, of which textile exports were US$13.15 billion, a month-on-month increase of 35.8%, and clothing exports were US$15.22 billion. , a month-on-month increase of 6.2%. Customs data from January to September shows that my country’s total exports of textiles and clothing were US$215.78 billion, an increase of 9.3%, of which textile exports were US$117.95 billion, an increase of 33.7%.
From the customs foreign trade data, we can see that China’s textile export industry has experienced rapid growth in the past few months. To this end, we consulted several foreign trade clothing and textile companies and obtained The feedback is as follows:
According to a relevant person from a foreign trade luggage and leather goods company in Shenzhen, “As the peak season at the end of the year approaches, our export orders are growing rapidly, not only for us, but also for several other companies. Companies that engage in foreign trade also have a lot of orders, which has caused a significant increase in international ocean freight, and the phenomenon of container explosions and container dumping occurs frequently.”
According to feedback from personnel involved in Alibaba’s international platform operations, “From the data point of view, international trade orders have been growing rapidly recently. Alibaba has internally formulated a double hundred standard, which is to serve 1 million TEUs. and 1 million tons of incremental trading commodities”.
According to relevant information company data, from September 30 to October 15, the printing and dyeing operating rate in Jiangsu and Zhejiang increased significantly. The average operating rate increased from 72% at the end of September to about 90% in mid-October, with the operating rate in Shaoxing, Shengze and other regions even increasing by about 21%.
The market is hot! The container shortage will continue for another 4 months until 2021!
In recent months, the distribution of containers around the world has been seriously uneven, with serious shortages in some areas and serious backlogs in some countries. Currently, the shortage of containers in the Asian shipping market is particularly serious, and this phenomenon is particularly serious in China.
Textainer and Triton, the world’s top three container equipment rental companies, both said that the shortage of containers will continue in the next few months.
According to container equipment lessor Textainer, it will be difficult to restore balance between container supply and demand before mid-February next year, and the shortage of containers will continue until the Spring Festival of 2021. after.
Shippers will have to be patient and may also pay at least five or six months of additional costs for shipping their goods by sea. A rebound in the container market has pushed ocean freight rates to record levels, and that appears to be continuing, especially on transpacific routes from Asia to Long Beach and Los Angeles.
Since July, a series of factors have pushed up prices, seriously affecting the balance of supply and demand, and ultimately leaving shippers facing transportation difficulties. The situation is characterized by high costs, too few sailings, insufficient container equipment and very low liner punctuality.
One of the key factors is a shortage of containers, prompting Maersk and Hapag-Lloyd to tell customers it may take some time to return to equilibrium.
Textainer, headquartered in San Francisco, is one of the world’s major container leasing companies and the largest second-hand container seller, focusing on the procurement, leasing and leasing of maritime cargo containers. Resale and lease containers to more than 400 shipping operators.
The company’s senior vice president of marketing, Philippe Wendling, believes that the container shortage may continue for another four months, until February next year.
One of the most popular topics in Moments recently: missing boxes! Missing boxes! Price increase! Price increase! !
The global epidemic is still continuing, and the pressure on the shipping industry has not diminished at all.
We would like to remind all cargo owners and freight forwarders that this shortage of boxes is not expected to disappear in the short term. Please arrange shipments reasonably, notify and arrange bookings in advance, and make reservations promptly. Cherish~
“Don’t dare to settle foreign exchange, otherwise you will lose money.” Both onshore and offshore RMB exchange rates hit the highest appreciation record in this round!
On the other hand, while foreign trade orders are booming, foreign trade people do not seem to feel that the market has brought them surprises!
Data from the China Foreign Exchange Trading Center showed that the central parity rate of the RMB was reported at 6.7010 on October 19, an increase of 322 points, setting a new high since April 18 last year. On October 20, the central parity rate of the RMB continued to increase by 80 basis points to 6.6930.
On the morning of October 20, the onshore RMB rose to a maximum of 6.68 yuan, and the offshore RMB rose to a maximum of 6.6692 yuan, both setting high records since the current round of appreciation.
Onshore RMB exchange rate at 16:32 on October 20
Onshore RMB trends
Offshore RMB exchange rate at 16:33 on October 20
Offshore RMB Trends
The central bank has taken action to lower the foreign exchange risk reserve ratio for forward foreign exchange sales business from 20% to 20% starting from October 12, 2020. 0. This move will reduce the cost of forward foreign exchange purchases by enterprises, help increase the demand for foreign exchange purchases, and moderate the appreciation of the RMB.
Judging from the trend of the RMB exchange rate that week, the onshore RMB has partially fallen due to the rebound of the U.S. dollar index. Many companies regard this as an opportunity to settle foreign exchange, while the offshore RMB The exchange rate continues to rise.
The latest comment from Mizuho Bank Asia chief strategist Zhang Jiantai said that the People’s Bank of China’s move to lower the foreign exchange risk reserve ratio indicates a change in its assessment of the RMB’s prospects; considering that Biden’s Leading in opinion polls, the U.S. election may become a risk event for yuan appreciation rather than depreciation.
“Don’t dare to settle foreign exchange, otherwise you will lose money”! However, after the ups and downs of foreign trade people during this period, they have completely lost their temper.
If calculated from the beginning of the year, the RMB has appreciated by 4%. If calculated from the low point at the end of May, the RMB exchange rate increased by a cumulative 3.71% in the third quarter, the largest quarterly increase since the first quarter of 2008.
And not only against the US dollar, the RMB has appreciated even more against other emerging currencies, such as the Russian ruble, which has appreciated by 31%, the Mexican peso, which has appreciated by 16%, the Thai baht, which has appreciated by 8%, and the Indian rupee, which has appreciated by 7%. %; the appreciation rate against developed currencies is relatively smaller. For example, the relative depreciation against the euro is 0.8%, and the appreciation against the Japanese yen is 0.3%. However, the appreciation rate against the US dollar, Canadian dollar, and pound sterling is more than 4%.
After the RMB has strengthened significantly in the past few months, companies’ willingness to settle foreign exchange has dropped significantly. The spot settlement rates from June to August were 57.62%, 64.17% and 62.12% respectively, much lower than the 72.7% in May, and also lower than the sales rate in the same period, showing that companies prefer to hold more foreign exchange.
After all, if you got an exchange rate of 7.2 this year, but now it is less than 6.7, how can you be so determined to settle foreign exchange?
Data from the People’s Bank of China show that the balance of foreign currency deposits of domestic residents and enterprises has climbed for four consecutive months at the end of September, reaching 848.7 billion US dollars, refreshing the historical high reached in March 2018. Among them may be payment for goods that you and I are reluctant to settle in foreign exchange.
Judging from the current productivity concentration of the global apparel and textile industry, China is the only country that meets the conditions among countries that have been weakly affected by the epidemic. Moreover, China is also the world’s largest textile producer and exporter. China’s production capacity in the textile and apparel industry is huge. This series of factors determine the possibility of transferring orders from overseas to China.
With the arrival of shopping festivals such as China’s Double Eleven, the growth of the consumer side is expected to bring secondary positive drivers to China’s commodities. It is not ruled out that commodity prices in chemical fiber, textile, polyester and other industrial chains will be affected. The possibility of price increases again. But at the same time, we must also be wary of rising exchange rates and debt collection defaults.
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