In 2019, the development of my country’s textile industry faced a significant increase in domestic and foreign risks and challenges. The entire industry insisted on deepening supply-side structural reforms, continued to accelerate transformation and upgrading, and strived to overcome downward risk pressures. The overall prosperity and production conditions were generally stable. However, under multiple pressures such as slowing domestic and foreign market demand, a more complex trade environment, and continued increases in comprehensive costs, corporate investment growth momentum has been weak, efficiency levels have declined, and major economic performance indicators have shown a slowdown.
Since 2020, the COVID-19 epidemic has spread globally. The industry has faced huge environmental pressure and systemic risks, and both ends of the industry’s supply and demand have experienced unprecedented impacts.
At the same time, due to the combined pressure of foreign epidemics and Sino-US trade frictions, the production scale of the textile industry has declined, and most goods have shifted from exports to domestic sales. It is understood that most of the downstream finished products are towels. This impact has brought problems to the downstream market, such as increased inventory, difficulties in capital operation, production halving or even suspension of production. Julu County Weihua Textile Co., Ltd. has seen a decrease in textile orders since June. Due to the unstable quality of the C40 count yarn produced and the narrowing of the downstream market, it has now added steam spinning and two-for-one twisting machines to expand sales and rectified and improved high-end products. The quality level of yarn count. At present, the raw materials are mainly Xinjiang cotton that is reserved for auctions, and the price is 12,561-12,730 yuan/ton (the factory price is settled by weight, with invoice, and does not include freight). The real estate cotton is mainly mixed with cotton, and the price is 11,800 yuan/ton. Around (the factory price is settled based on gross weight, with invoice).
Since the outbreak of the epidemic, domestic and foreign market demand has declined, and domestic sales of textile and clothing products have declined significantly. According to data from the National Bureau of Statistics, in June, the total retail sales of consumer goods nationwide was 3,352.6 billion yuan, a year-on-year decrease of 1.8% (an actual decrease of 2.9% after deducting price factors, the following are nominal increases unless otherwise specified), and the decline was 1.0% narrower than the previous month. percentage points. From January to June, the total retail sales of consumer goods was 17.2256 billion yuan, a year-on-year decrease of 11.4%. In terms of textile and clothing retail sales, the total national textile and clothing retail sales in June 2020 reached 105.9 billion yuan, a decrease of 0.1% compared with the same period last year. From January to June, the total retail sales of textiles and clothing nationwide exceeded 500 billion yuan, a year-on-year decrease of 19.6%.
Not only that, with the obvious deterioration of economic benefits and severe lack of demand, production and sales have fallen sharply. The investment scale of textile enterprises has shrunk significantly, and their revenue and profits have also declined relatively. Textile companies generally express a lack of confidence in the market outlook.
Looking ahead to the whole year, the domestic and international development environment faced by my country’s textile industry is still complex and severe, and risk and challenge factors have increased significantly. The COVID-19 epidemic has caused the global economy to fall into recession. Insufficient international market demand will remain the norm in the second half of the year, and the export situation of the textile industry remains severe. However, the domestic epidemic prevention and control situation is gradually improving, residents’ living and production order has accelerated, and the national “six stability” and “six guarantees” policies have helped residents maintain employment and income. The continuous accumulation of various positive factors will provide more opportunities for the textile industry. It provides favorable conditions for supporting domestic demand and provides important guarantee for enterprises to resolve various risks and challenges. </p
