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Will the yarn downturn continue?
by：Chengyi
2021-03-15
Recently, the domestic textile industry has remained sluggish. Small orders, difficulty in capital turnover, debts on goods, and loss of workers have plagued enterprises. August is coming, how will the yarn be interpreted? The industry's confidence is still insufficient, mainly due to the following reasons:
1. The essence of the Sino-US trade war will affect the domestic textile industry for a long time. On July 29, the 2019 (2nd) Renmin University of China Business School Annual Financial Forum was held in Beijing. Experts believe that the essence of the Sino-US trade war is that the United States wants to maintain its global hegemony and global leadership. In other words, the Sino-US trade war is a great power game under the background of major changes. The city gate caught fire, and the pond fish was hit. The Sino-U.S. trade war is bound to bring about big moves and big changes in the industry. Especially in the recent stage, China and the United States are irrational confrontation. As an important product exported to the United States, it is inevitable that textiles and clothing will suffer a greater impact in the near future.
2. Environmental protection is advancing in depth, and the textile and apparel industry is on the cusp of the storm. At present, the textile industry has become a 'severe disaster area' for environmental protection. Take Shengze printing and dyeing industry as an example. At the beginning of this year, Shengze Town, Wujiang District circulated a 'Notice on Carrying out Textile Finishing and Refining and Industry Environmental Remediation Actions.' Renovation of production enterprises engaged in rotary screen printing, flat screen printing, transfer printing, digital printing, digital transfer printing, laminating, filming, bronzing, shaping, flocking, etc.! On July 19, Shengze Town Comprehensive Law Enforcement Bureau coordinated the establishment of 12 The joint inspection team, with a total of about 70 people, carried out joint law enforcement on rotary screen printing and flat screen printing enterprises in the town and banned them in a centralized manner. In this action, a total of 21 companies were banned. This is just a microcosm of the impact of environmental governance on the textile industry. According to feedback from many companies, due to the increasing investment in environmental protection, most companies have entered a state of meager profit and loss. Directly affect the orders of the upstream and downstream of the industrial chain.
Third, the rise of Southeast Asian textiles. Since the tightening of Sino-US trade relations, many textile and apparel companies have turned to Cambodia, Vietnam, Pakistan and other foreign markets. Take Vietnam as an example. Data show that in 2018, Vietnam's textile and apparel exports increased by 16.01%. Among them, textile and apparel exports reached 28.78 billion U.S. dollars, an increase of 14.45% year-on-year; fabric exports reached 1.66 billion U.S. dollars, an increase of 25.5% year-on-year; textile and apparel raw materials exports reached 1.23 billion U.S. dollars, an increase of 14.59% year-on-year. In the first quarter of 2019, Vietnam's textile and garment exports amounted to US$7.3 billion, an increase of 13.3%. Especially in 2019, the competitive advantages of foreign yarn entering the Chinese market are very obvious in terms of cost and quality. According to port traders, since mid-to-late July this year, domestic medium-sized textile companies C32S mid-range yarns have quoted 21700-21900 yuan/ton (national storage cotton blending accounts for more than 50%), while port C32 high-level blending India and Vietnam The quotations of Pakistani yarns are mostly 21800-22000 yuan/ton. In comparison, imported yarns have good quality indicators and high dyeing consistency.
To sum up, at present, the international situation and the domestic environment are both unfavorable to the textile industry, and it will be normal to move forward as an enterprise. In addition, with the gradual intensification of external competition, it is expected that the yarn market will continue to be dominated by weak consolidation in the short term, and it is unrealistic to go up and down.
Disclaimer: The above content is for reference only, and the operation is at your own risk accordingly
1. The essence of the Sino-US trade war will affect the domestic textile industry for a long time. On July 29, the 2019 (2nd) Renmin University of China Business School Annual Financial Forum was held in Beijing. Experts believe that the essence of the Sino-US trade war is that the United States wants to maintain its global hegemony and global leadership. In other words, the Sino-US trade war is a great power game under the background of major changes. The city gate caught fire, and the pond fish was hit. The Sino-U.S. trade war is bound to bring about big moves and big changes in the industry. Especially in the recent stage, China and the United States are irrational confrontation. As an important product exported to the United States, it is inevitable that textiles and clothing will suffer a greater impact in the near future.
2. Environmental protection is advancing in depth, and the textile and apparel industry is on the cusp of the storm. At present, the textile industry has become a 'severe disaster area' for environmental protection. Take Shengze printing and dyeing industry as an example. At the beginning of this year, Shengze Town, Wujiang District circulated a 'Notice on Carrying out Textile Finishing and Refining and Industry Environmental Remediation Actions.' Renovation of production enterprises engaged in rotary screen printing, flat screen printing, transfer printing, digital printing, digital transfer printing, laminating, filming, bronzing, shaping, flocking, etc.! On July 19, Shengze Town Comprehensive Law Enforcement Bureau coordinated the establishment of 12 The joint inspection team, with a total of about 70 people, carried out joint law enforcement on rotary screen printing and flat screen printing enterprises in the town and banned them in a centralized manner. In this action, a total of 21 companies were banned. This is just a microcosm of the impact of environmental governance on the textile industry. According to feedback from many companies, due to the increasing investment in environmental protection, most companies have entered a state of meager profit and loss. Directly affect the orders of the upstream and downstream of the industrial chain.
Third, the rise of Southeast Asian textiles. Since the tightening of Sino-US trade relations, many textile and apparel companies have turned to Cambodia, Vietnam, Pakistan and other foreign markets. Take Vietnam as an example. Data show that in 2018, Vietnam's textile and apparel exports increased by 16.01%. Among them, textile and apparel exports reached 28.78 billion U.S. dollars, an increase of 14.45% year-on-year; fabric exports reached 1.66 billion U.S. dollars, an increase of 25.5% year-on-year; textile and apparel raw materials exports reached 1.23 billion U.S. dollars, an increase of 14.59% year-on-year. In the first quarter of 2019, Vietnam's textile and garment exports amounted to US$7.3 billion, an increase of 13.3%. Especially in 2019, the competitive advantages of foreign yarn entering the Chinese market are very obvious in terms of cost and quality. According to port traders, since mid-to-late July this year, domestic medium-sized textile companies C32S mid-range yarns have quoted 21700-21900 yuan/ton (national storage cotton blending accounts for more than 50%), while port C32 high-level blending India and Vietnam The quotations of Pakistani yarns are mostly 21800-22000 yuan/ton. In comparison, imported yarns have good quality indicators and high dyeing consistency.
To sum up, at present, the international situation and the domestic environment are both unfavorable to the textile industry, and it will be normal to move forward as an enterprise. In addition, with the gradual intensification of external competition, it is expected that the yarn market will continue to be dominated by weak consolidation in the short term, and it is unrealistic to go up and down.
Disclaimer: The above content is for reference only, and the operation is at your own risk accordingly
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