According to the latest news from the Ministry of Commerce, the total retail sales of consumer goods in July was 3.22 trillion yuan. With a month-on-month growth of 0.85%, it can be seen that my country’s consumer market is continuing to recover steadily.
Although the current textile and clothing consumption has not yet returned to pre-epidemic levels, as my country’s consumption potential will continue to be released and consumption upgrades continue to advance, the consumer market is expected to continue its steady recovery.
Raw materials: Cotton prices continue to rise, with international cotton prices rising faster than domestic cotton prices. The price of viscose staple fiber continues to rise, while the price of polyester staple fiber remains weak.
On August 24, the overall cotton spot transaction was light, and the current willingness of textile companies to restock has not been significantly strengthened. Zheng cotton futures closed up in shock, with CF2009 closing at 12,290 yuan/ton, up 10%; CF2101 closing at 12,945 yuan/ton, up 15%. The international cotton price index (M) is 71.14 cents/pound, which is equivalent to a general trade port delivery price of 12,283 yuan/ton, an increase of 156 yuan/ton from the 14th. On August 25, the national cotton price B index, which represents the sales of standard-grade lint cotton in the mainland, was 12,613 yuan/ton, an increase of 210 yuan/ton from the 14th.
Recently, the price focus of viscose staple fiber has moved upward, and most of the shipments are based on early orders, and there are not many new orders. Some factories have increased their equipment loads, and inventories have declined slightly. On August 24, 1.2D viscose short was 8,820 yuan/ton, up 20%; the mainstream transaction price of viscose in the market was 8,600-8,900 yuan/ton.
In terms of polyester staple fiber, prices maintained a weak trend, trading volume increased, and factory inventories decreased. As the downstream market gradually improves and factories are more motivated to start operations, polyester staple fiber prices will still maintain a certain resilience.
On August 24, the mainstream price of Jiangsu direct-spun polyester short semi-gloss 1.4D was 5400-5600 yuan/ton.
Cotton yarn: Trading in the cotton yarn market has recovered slightly, and quotations have mostly remained stable. Some textile companies have plans to increase prices based on their own inventory levels, and actual transactions need to be followed up. At present, the overall improvement of the market is not obvious, and the overall startup rate is still low. The market’s confidence in the market outlook has recovered slightly, but it is still cautious. The pure cotton yarn market is expected to remain stable in the near future. Domestically, the market in Guangdong shows obvious signs of improvement, while the market recovery in Jiangsu and Zhejiang is slightly insufficient; in terms of exports, orders are gradually being implemented and the demand for high-count yarns is increasing. Recently, downstream shipments have improved, and inventories of cotton spinning companies have declined slightly.
On August 24, the mainstream price of Fujian pure polyester yarn T32S was 9300-9500 yuan/ton, and the mainstream price of Henan polyester-cotton yarn TC65/35 32S was 13700-13800 yuan/ton.
The trading atmosphere in the rayon yarn market has recovered. On August 24, the price of rayon yarn CY R30 was 11,700 yuan/ton, an increase of 180 yuan. The prices of other types of yarns remained stable, with no price changes.
On August 24, the spot market trading of imported cotton yarn was normal, and the price was mainly stable. Some traders made noises about price increases. After the price increase, the transactions were light, and traders maintained the original price. Goods are improving.
The external price of imported yarn increased steadily. The external price in India was mainly stable, the external price in Vietnam was stable but strong, the open-end spinning price was mainly stable, and the card quotation rose rapidly. After the price rose, the trading volume weakened. The factory’s C32S package price is quoted at US$2.35/kg, and RMB after tax is about 18,800 yuan/ton. The external price in Pakistan is stable. The local demand in Pakistan has weakened slightly this week. The transaction volume in China has not increased significantly. The trader Sirotex C10S is quoted at US$355 per piece, and the RMB after tax is about 15,700 yuan per ton.
Grey fabrics: The improvement in the domestic pure cotton gray fabric market is limited, and the recovery of orders from downstream weaving mills is not as good as that of the same period last year. The pure cotton gray fabric market has recovered somewhat, but most of them are proofing orders and there are few large orders. Customers have serious price pressure mentality and the profits of weaving mills have decreased. On August 24, the price of gray fabric CG OE10 was 7.88 yuan/meter, down 0.01; the price of CG C32S was 6.34 yuan/meter, down 0.01, and the price of CG JC40 was 6.44 yuan/meter, down 0.01. The prices of other gray fabrics remained unchanged.
According to the gray cloth price index, gray cloth prices have remained stable. According to China Textile City market transaction volume statistics, the total sales volume of gray fabrics on August 24 was 5.23 million meters, a decrease of 630,000 meters from the 23rd. Among them, 3.65 million meters of chemical fiber cloth were sold, accounting for 67.8% of the total sales, 350,000 meters of cotton cloth were sold, accounting for 6.7% of the total sales, and 400,000 meters of rayon cloth were sold, accounting for 7.6% of the total sales. “Golden Nine and Silver Ten” are coming soon, and I believe that the volume of subsequent orders will gradually increase.
The growth of overseas epidemics continues, and the pressure on textile and apparel exports remains unabated
In the first seven months of this year, China’s textile and apparel exports increased year-on-year. Despite this, industry analysts believe that given the continued growth of overseas epidemics, textile and apparel exports will still face greater pressure.
Jinlianchuang Chemical Fiber Analyst Zhang Jie said that global economic production activities have gradually returned to normal, companies have resumed work and production, people’s consumption has gradually recovered, and the consumption concept has shifted from necessities to optional consumption. The purchase demand for clothing in major global markets has begun to rebound, and clothing exports have improved, with the decline significantly narrowing compared with the previous period.
The epidemic has put the entire textile and apparel industry chain in a cycle of severe weak demand and prominent overcapacity. If the market wants to get better, it still depends on terminal demand. “Domestic textile and apparel demand is relatively weak, and overseas demand is difficult to see a significant improvement. Recently, the overseas new crown epidemic continues to spread. Although some countries around the world began to gradually relax their policies after May and the economy gradually recovered, resumption of work does not mean resumption of production. , people’s incomes have shrunk, and it will take a long time for consumption to pick up,” Zhang Jie said.
At the same time, as societies in Europe and North America begin to unblock, activity is increasing.Ports in some areas are facing increasing traffic congestion. If the congestion situation is not alleviated, foreign trade exporters may need to pay additional congestion fees in addition to paying freight.
“Affected by global unilateral tradeism and industrial transfer, the share of Chinese textile and apparel products in the markets of major developed countries continues to decline. In the past year, the EU, the United States and The proportion of Japan’s clothing imports from China decreased by 1.15, 1.46 and 3.11 percentage points respectively. At the same time, clothing imports from Vietnam and Bangladesh showed double-digit growth, and their market shares increased by 1.53, 1.41 and 1.63 percentage points respectively.” Zhang Jie He said that China’s textile and apparel share in traditional export markets such as Europe, the United States, and Japan is being replaced by competitors such as ASEAN, India, and Bangladesh.
How can textile companies seize market orders as the “Golden Nine and Silver Ten” approaches?
Under the influence of overseas epidemics and global unilateral tradeism, most textile companies have switched exports to domestic sales and increased their exploration of the domestic market.
First, extend the industrial chain. Strong enterprises can consider extending to the weaving and printing and dyeing industries with higher profits, and provide self-support, form scale and cost advantages, and improve the competition of enterprises. force. In addition, in the current environment, it is necessary to strictly control costs and reduce production costs through cotton distribution, labor and other links. Corporate leaders must also have a forward-looking strategic vision, layout the market in advance, and adjust the product structure in a timely manner according to market changes. For example, the low price in the past month The count yarn sells quickly in the market, and many companies achieve the purpose of withdrawing funds by reducing the yarn count.
Second, product differentiation increases product added value and takes the path of differentiation. Product structure adjustment is a strategy that has been proposed in China for many years. After experiencing the narrow escape of the epidemic, this time there may be many companies with low-end products and management that cannot keep up. Companies need to have clear product positioning or increase blending. Proportion, or making a single product to the extreme, especially paying attention to changes in the domestic consumer market.
Third, strengthen the cultivation of internal strength. Under the epidemic, enterprises cannot wait passively. They should take advantage of this “opportunity” to practice internal strength, turn the epidemic period into a period of internal strength cultivation, and improve The enterprise’s ability to resist risks will accumulate strength for better development after the epidemic. Enterprises can implement refined management, reduce costs and reduce energy consumption. You also need to walk on multiple legs. In a changing market environment, over-reliance on any one market is risky. Enterprises need to constantly try to open up new markets and reduce operational risks. </p
