Recently, the National Bureau of Statistics released the profits of industrial enterprises above designated size nationwide from January to June 2021. Compared with last year during the epidemic, all walks of life across the country this year are at a The rapid growth stage also includes our textile industry. However, the overall increase in operating income, operating costs and total profits of the textile industry is not proportional. Both income and costs increased by nearly 20% year-on-year, but profits only increased by 2.3%. The apparel industry’s revenue, costs and profits all increased by around 13%, with little difference between before and after.
In other words, the cost of the clothing industry has increased significantly. At the same time, profits are also expanding simultaneously. The textile industry is also facing skyrocketing costs, but cannot expand profits through price increases, so profit growth is only 2.3%.
Upstream raw material prices have soared, but downstream orders have been average
The most eye-catching link in the entire textile industry chain in the first half of the year was the polyester manufacturers. The Fortune Global 500 list was released on August 2. The ranking of textile chemical companies has improved significantly, and there are also many new companies. Among them, Hengli Group is the highest ranked 67th in China’s textile industry, while Zhejiang Rongsheng Holding Group (255th) is on the list for the first time, Shenghong Holding Group Co., Ltd. (311th) has risen by more than 100 places, and Shandong Weiqiao Entrepreneurship Group Co., Ltd. (282nd), Zhejiang Hengyi Group (309th).
Other polyester manufacturers are also experiencing sales A hot situation with soaring growth and doubling of profits. However, in sharp contrast to the popularity of raw material factories, the overall market situation of downstream textile orders is average.
According to an elastic fabric trader, their orders this year are indeed much better than last year, but the market is still far from the peak season. Therefore, when upstream raw materials, especially spandex, doubled in price, their fabric prices could not keep up, and customers simply would not accept the increase. In order to maintain profits, they cannot work hard on raw materials and fabrics, so they can only find a way out of printing and dyeing costs. For this reason, they could only find some printing and dyeing factories in surrounding remote areas, which increased a lot of manpower and time costs.
Relative to textiles with orders and profits Enterprises, the market and some enterprises are not as good as last year. According to a brand clothing supplier, their customers are mainly from Europe. Their orders last year were 50% less than in normal years. However, the market has not improved this year, but has dropped by 30% year-on-year. Another home textile fabric manufacturer also said that this year’s orders are 20%-30% lower than last year.
The epidemic is still raging, and the peak season in September and October is unknown
Although the new coronavirus was raging last year, after the high summer temperatures in July and August, the epidemic situation around the world improved to a certain extent. Thanks to this, the domestic textile market has gained a breather, a large number of orders have been placed, and weaving, printing and dyeing are busy. However, recently, there has been another global outbreak during hot weather. The new delta virus seems to have completely ignored the impact of hot weather. The main infection cases in various countries are also dominated by new strains. Many countries and cities in South Asia, Southeast Asia, Europe and other regions have been locked down again because of this, and the unblocking date is half a month or even a month away.
This is very important for the upcoming traditional textile peak season Obviously not good news. In the past, although August was in the off-season, various samples were being searched and sampled in preparation for the upcoming peak season. However, this year the market seems relatively quiet. A person in charge of a textile store in the market said that there have been very few people looking for samples in the market recently. They have no source of new customers, and the few orders they have made are from old customers for many years.
The European and American markets in the midst of the epidemic are hard to devote more energy to textile production due to the impact of city closures and production suspensions. Without proofing and setting out in the early stage, it will be difficult to place substantive orders later.
In addition to facing the epidemic, the textile market In addition to certain factors, the continued price increase of raw materials will inevitably affect textile production. An important reason for the sluggish peak season at the beginning of the year is that the price of textile raw materials has risen sharply after the new year. As a result, the cost of orders received before the year has increased and normal production cannot be carried out. Some orders can only be postponed or cancelled. In the off-season, raw material prices haveIt has risen several times in the past few weeks. If there is a peak season, the rise may be even more fierce. Then the market in the second half of the year is likely to be hit by rising raw material prices.
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