From January to September this year, the production operation of my country’s home textile industry was stable and orderly. Based on the changes in the industrial base caused by the epidemic last year, the industry’s growth rate has slowed down compared with the first few months of this year, but the overall growth rate still remains at Reasonable growth range. Affected by factors such as raw material prices and transportation costs, industry profits have been squeezed. In terms of market, domestic orders were slightly insufficient; exports maintained high growth, but the growth rate slowed down slightly.
1. The overall operation of the industry is stable
According to data from the National Bureau of Statistics, from January to September The operating income of home textile enterprises above designated size nationwide increased by 10.95% year-on-year, and the two-year average growth rate was 1.36%.
Figure 1. Cumulative operating income growth of national home textile enterprises above designated size in 2021 (%)
Data source: National Bureau of Statistics
The three major sub-industries of bedding, towels and fabrics all show a steady growth trend. According to calculations from the National Bureau of Statistics, the operating income of bedding companies above designated size nationwide increased by 15.52% year-on-year from January to September. Excluding the impact of the epidemic last year, the two-year average growth rate was 2.34%; towel companies above designated size reversed the negative growth trend of the previous year. , operating income increased by 8.24% year-on-year, and the two-year average growth rate was -4.67%; cloth art enterprises above designated size had good growth momentum, with operating income increasing by 12.06% year-on-year, and the two-year average growth rate was 6.54%.
2. Multiple factors squeeze industry profits
The complex and severe international environment, the impact of domestic epidemics and floods, and the continued rise in raw material prices , energy and power shortages and other factors together squeeze the industry’s profit margins. Data calculations from the National Bureau of Statistics show that since this year, the cumulative growth rate of the total profits of home textile enterprises above designated size in the country has gradually declined, and by September, the cumulative growth rate was negative, with a decrease of 9.17%.
Figure 2. Cumulative total profit growth rate of national home textile enterprises above designated size from January to September 2021 (%)
Data source: National Bureau of Statistics
Since this year, the prices of cotton and chemical fiber, the main upstream raw materials of the home textile industry, have increased to varying degrees. In particular, the prices of cotton and cotton yarn have been at the lowest level in recent years. The high level, combined with the increase in dyeing material costs, personnel costs and the surge in shipping costs, has resulted in high production costs for end-use home textile products. However, the price of end-products has not been transformed with the increase in costs, causing corporate profits to be greatly squeezed.
Figure 3. Domestic cotton (3128B) price index growth trend in the past four years
Data source: China Textile Economic Information Network
Figure 4. Domestic 32-count cotton yarn price index growth trend in the past four years
Data source: China Textile Economic Information Network
Figure 5. Domestic 40-count cotton yarn price index growth trend in the past four years
Data source: China Textile Economic Information Network
However, judging from the overall development of the industry in recent years, industry profits excluding the influence of abnormal factors are still Maintaining a positive growth trend, the two-year average growth rate of the total profits of home textile enterprises above designated size according to the National Bureau of Statistics remains at 4.46%, and the two-year average growth rate of the three major sub-sectors of bedding, towels and fabrics also maintains Better growth.
Figure 6. Year-on-year growth rate of total profits of enterprises above designated size in home textiles and major sub-sectors from January to September 2021
Data source: National Bureau of Statistics
3. Industry production capacity remains stable, and insufficient domestic orders increase pressure on enterprises
According to data from the National Bureau of Statistics, from January to September, the domestic sales output value of home textile enterprises above designated size in the country continued to decline by 12.49% despite negative growth in the same period last year, and the two-year average decline was 10.26%. According to the results of the “Textile Enterprise Management Questionnaire Survey” conducted by the China Textile Federation in the third quarter of this year, insufficient domestic orders are the primary difficulty currently facing domestic textile enterprises. Paying attention to changes in the domestic market, expanding the domestic market, and boosting consumer demand are currently the focus of home textile companies.
But at the same time, the comprehensive production and operation conditions of the home textile industry remained stable in the third quarter, and the proportion of companies with good operating conditions increased compared with the second quarter. Industry production is generally stable, and capacity utilization remains unchanged from the previous quarter. The scope of companies with output growth of major products has expanded compared with the previous quarter, and companies still maintain a positive attitude towards production capacity in the fourth quarter.
4. Exports maintained high growth, with the growth rate narrowing year-on-year
According to customs statistics From January to September this year, my country’s cumulative exports of home textile products were US$34.749 billion, a year-on-year increase of 37.33%. Excluding exchange rate factors, the year-on-year growth was 26.71%; the two-year average growth was 9.19%. At this stage, my country’s home textile product exports have recovered or even exceeded pre-epidemic levels, but the growth rate has slowed down and gradually…Compared with normal trade levels, exports in the third quarter increased by 16.01% year-on-year, which was significantly lower than the previous two quarters.
Figure 7. China’s home textile products export volume and year-on-year data in the first three quarters of 2021 Source: China Customs
01
The growth rate of export quantity narrowed, and the growth rate of unit price expanded
January-September , China’s home textile product export volume increased by 27.5% year-on-year, and the export unit price increased by 7.71% year-on-year. Since the beginning of this year, both volume and price have been increasing. Export volume has remained high year-on-year but the growth rate has gradually narrowed. The volume from January to September was 19 percentage points lower than the previous two quarters; while the year-on-year increase in export unit price has continued to expand. From January to September, The unit price was 2.66 percentage points higher than the previous two quarters.
Figure 8. China’s export quantity, unit price and amount of home textile products from January to September 2021 year-on-year
Data source: China Customs
02
The export volume of the six major categories of products has increased to varying degrees
Bedding and fabrics continue to play a stabilizing and stimulating role. Bedding and fabric products have always been the main home textile products exported by my country. From January to September, the export scale of the two accounted for 69.47% of the total. The export of bedding products has grown steadily. From January to September, the export value increased by 33.37% year-on-year. The growth rate is lower than the average level. This is mainly due to the relatively stable export situation. In the same period of 2020, it has returned to a high level, with an average growth rate of 9.93% in the two years. Fabric products have achieved substantial recovery growth this year, with exports increasing by 42.35% year-on-year from January to September, strongly boosting the overall situation, with an average growth rate of 9.6% in the two years.
The export scale of blankets, carpets, and kitchen textiles is small, but the growth trend is significant. The export scale of blanket products has recovered rapidly this year. The export value from January to September increased by 41.44% year-on-year. The export value of carpets and kitchen textiles also achieved growth of 36.73% and 23.64% on a high base last year. The two-year average growth rate Reaching 13.35% and 8.5%.
It is worth noting that the growth of towel products is slightly weak. From January to September, my country’s exports of towel products were US$1.992 billion, and the scale ratio dropped from 6.7% in the same period in 2019 to 5.73%. Although the export volume from January to September increased by 30.28% year-on-year, the two-year average growth rate was only 0.93%.
Figure 9. Export volume and year-on-year growth of various home textile products from January to September
Data source: China Customs
03
U.S., Europe and Japan The market is growing steadily, and other markets are recovering quickly
The growth of the US, European and Japanese markets is relatively stable. From January to September, my country exported US$16.246 billion of home textile products to the US, European and Japanese markets, a year-on-year increase of 30.89%, and an average growth of 9.17% in the two years. In the traditional markets of the United States, Europe and Japan, benefiting from the current economic stimulus policies, the U.S. market is growing strongly, which has greatly boosted the growth of the U.S., Europe and Japan markets. From January to September, my country’s exports of home textile products to the US market were US$8.988 billion, a year-on-year increase of 39.37%, and the two-year average growth was 13.3%. The EU market and the Japanese market were slightly inferior. Exports to the EU market were US$4.996 billion, a year-on-year increase of 28.22%, and the two-year average growth was 6.01%; exports to the Japanese market were US$2.262 billion, a year-on-year increase of 9.44%, and the two-year average growth was 1.74%.
Since the beginning of this year, markets other than the United States, Europe and Japan have grown rapidly and recovered rapidly. Exports of home textile products to them were US$18.502 billion, a year-on-year increase of 43.52%, and an average growth of 9.20% in the two years. Among them, the ASEAN market is growing well and has become the second largest export market for my country’s home textile products. From January to September, my country exported US$5.157 billion of home textile products to the ASEAN market, a year-on-year increase of 35.28%, and an average growth of 12.5% in the two years. In addition, Latin America has experienced rapid growth this year. From January to September, my country’s exports of home textile products to it were US$2.652 billion, a year-on-year increase of 92.56%, and an average growth of 15.35% in the two years.
On the whole, from January to September, my country’s home textile industry showed the resilience of industry development in the complex and changeable internal and external environment. The uncertainties faced by the industry in the fourth quarter have not subsided. Challenges posed by rising raw materials, energy and electricity shortages, high international freight prices and many other factors have made the industry’s overall forecast for the fourth quarter more cautious. However, with the arrival of the peak consumption season and the active response of enterprises in the home textile industry, the home textile domestic and foreign sales market is expected to maintain stable operation in the fourth quarter, and the industry is expected to maintain a stable development trend throughout the year. </p
