Every summer is a time when environmental protection and production restrictions are more frequent, and 2021 is no exception. Starting from May 31, various weaving, printing and dyeing enterprises began to implement production cuts and restrictions according to different standards. Normally, once production is restricted, factories and customers will be very anxious. Limited production capacity will inevitably require a long production time. The issue of delivery time is in front of everyone. Many companies are troubled by production restrictions. However, judging from the analysis report of the Filament Weaving Association on the first three quarters of last year, weaving production restrictions did not affect the production of important textile clusters in Jiangsu and Zhejiang. What happened?
From January to September, Shengze, Siyang, Keqiao, etc.
Nine major clusters in Jiangsu and Zhejiang produced 23.34 billion meters of gray fabrics
In the first three quarters of 2021, the production situation of my country’s filament weaving industry gradually recovered. According to statistics from the China Filament Weaving Association, the cumulative output of chemical fiber filament fabrics in the nine cities of Shengze, Changxing, Xiuzhou, Longhu, Siyang, Pingwang, Qidu, Keqiao and Xiaohai was 23.34 billion meters, a year-on-year increase of 1.9%.
Affected by dual energy consumption controls and industrial structure adjustments, the output of chemical fiber filament fabrics in some clusters has declined. In the first three quarters, the cumulative output of chemical fiber filament fabrics in Changxing area was 4.8 billion meters, a year-on-year decrease of 11.1%, and a two-year average decrease of 2.52%; the cumulative output of chemical fiber filament fabrics in Pingwang area was 3.17 billion meters, a year-on-year decrease of 12.7%, and a two-year average decrease of 2.52%. 14.3%.
The Shengze region performed better. From January to September, the cumulative output of chemical fiber filament fabrics in the Shengze region reached 7.47 billion meters, a year-on-year increase of 11.0%, and an average growth of 4.1% in the two years. As a traditional chemical fiber filament fabric production base, Shengze relies on a complete industrial chain to continuously promote the upgrading of industrial structure, introduce digital management systems, gradually eliminate backward production capacity, and its production capacity remains at the leading level in the industry.
The output of chemical fiber filament fabrics in Longhu, Siyang and Qidu also achieved two-year average positive growth. In August, the State Council released the “National Fitness Plan (2021-2025)”, triggering a national fitness craze. Coupled with the arrival of “La Nina” in 2021, the early arrival of winter has significantly stimulated consumers’ willingness to buy winter clothing. The cold-proof clothing market has rich and colorful products. It better stimulates the release of market demand. The Longhu area mainly produces functional outdoor sports fabrics and cold-proof clothing. Driven by market demand, output has increased significantly. Siyang and Qidu mainly focus on home textile fabrics, and the market is relatively resilient, with output maintaining a slight growth.
Production table of chemical fiber filament fabrics in my country’s main filament weaving industry clusters from January to September 2021
Note: The two-year average growth rate is the geometric mean calculated using the first three quarters of 2019 as the base period. Data source: various industrial clusters
According to the association’s research, with the cancellation of power and production restriction policies, companies have gradually resumed normal production. Judging from the current capacity utilization rate of enterprises, 83% of the surveyed enterprises have a capacity utilization rate of more than 80%; 17% of the enterprises have a capacity utilization rate of 50% to 80%. Throughout the year, the output of filament woven fabrics will achieve a slight increase.
Cost “roller coaster”
Order recovery, profit decline becomes the norm for textile companies
From the perspective of the whole year, since 2021, due to the impact of the new crown epidemic, the entire textile industry chain has experienced violent fluctuations, and the price of gray fabrics has been affected by the “roller coaster” of raw material prices, and has also experienced ups and downs. At the beginning of the year, due to the excessive price increase of polyester filament, the price of gray fabric also increased significantly. But then it entered the off-season, and the gray fabric market fell both in volume and price, and the price once fell to the bottom. It was not until the end of September that the market conditions improved, and the entire industry chain also ushered in a wave of price increases. However, because the downstream market was not hot enough, the prices of gray fabrics, fabrics, etc. increased slightly. Then the peak season ended and the price of gray fabrics fell again. Therefore, the overall price of gray fabrics at the end of the year was mostly lower than that at the beginning of the year.
Taking 100D four-sided elastic as an example, compared with the beginning of the year and the end of the year, the price of gray fabrics has declined. The price at the beginning of the year was 2.4 yuan/meter, and at the end of the year it was 2.2 yuan/meter, a decrease of 0.2 yuan/meter. However, there was a market explosion in October, which caused the price of gray fabric to reach the highest point of the year. The price of 100D four-way stretch gray fabric was 2.45 yuan/meter.
The gray fabric market is eye-catching in the first half of the year
Foreign trade orders tailed off at the end of the year
Judging from the monthly performance, textile and clothing retail and online sales in 2021 are basically good in the first half of the year, especially in February and March before and after the Spring Festival. Of course, this is mainly due to the outbreak of the epidemic around the Spring Festival in 2020, which greatly affected the epidemic at that time. Textile and clothing retail. Foreign trade is mainly concentrated at the end of December. This is mainly due to the rebound in overseas clothing demand in 2022. Under the normal situation of anti-epidemic, global clothing demand has begun to pick up.
Judging from the transaction data of China Textile City, the gray fabric market performed well in the first half of the year. In the third quarter, the popularity of the fabric market declined. Since October, market activity has increased significantly, and transaction volume has increased month by month. Among them, the daily trading volume of woven polyester decorative fabrics such as curtain fabrics and window screens has shown a steady increase. Blackout jacquard curtain fabrics have long occupied the top spot in the best-selling fabric rankings and have received widespread attention; various types of yarn-dyed fabrics, lining fabrics and luggage lining accessories The market performed well in the second half of the year and shipments were stable.�Add. Entering the fourth quarter, many places experienced significant rain, snow and strong winds to cool down the weather. Down jacket fabrics such as nylon and gallbladder fabrics and jacket fashion casual fabrics have received widespread attention, and shipments have continued to rise. Since November, spring and summer clothing has begun to be produced and stocked. The market for imitation silk fabrics has picked up significantly.
According to the association’s research, the proportion of companies with domestic sales orders in 2021 will be the same as the same period last year or increase year-on-year, accounting for 66%, and the proportion of companies with order volume increasing by more than 20% year-on-year will account for 19%. The domestic demand market has recovered steadily. However, it should be noted that 22% of companies’ domestic sales orders have decreased by more than 10% year-on-year, mainly imitation silk companies. The traditional peak season for imitation silk is from November to April of the following year. It is recommended that enterprises focus on producing differentiated and functional fabrics to avoid homogeneous competition.
At the same time, according to Chinese customs data, from January to November, the cumulative exports of polyester filament fabrics were 14.96 billion meters, a year-on-year increase of 30.4%, an increase of 11.1% compared with the same period in 2019; the cumulative exports of nylon filament fabrics were 460 million meters, a year-on-year increase of 23.0%, compared with the same period last year. The same period in 2019 decreased by 13.0%. Data show that the export volume of polyester filament fabrics is higher than the pre-epidemic level, while nylon filament fabrics are still in the process of continued recovery.
Taken together, under the influence of factors such as the rebound in international market demand and the return of overseas orders, my country’s cumulative export volume of chemical fiber filament fabrics maintained a substantial growth in the first half of 2021, with the export growth rate reaching a maximum of 50.1% from January to June 2021. Although the export growth rate has slowed down since the second half of the year, the foreign trade market demand objectively exists, and the export growth rate remains at a high level. From January to November 2021, my country’s chemical fiber filament fabric export growth rate was 30.9%.
After a wave of “tail-up” market conditions at the end of the year, not only did the textile market usher in holiday adjustments, but it also revealed signals about the market trend in 2022. This signal has greatly given the market a shot in the arm. Textile people have changed their mentality in predicting the market next year, and most of them are optimistic. There will definitely be peaks if there are troughs. In addition, some unfinished orders will be left at the end of the year, and the “gold, three, and silver” stages of the traditional peak season will soon come, and the market in the first half of the year can be expected.
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