There are thousands of roads,
All roads lead to Rome.
Textile is no big deal;
Take everything seriously.
It’s time to say goodbye to 2021 in the blink of an eye.
This year, textile people experienced a collective surge in raw materials at the beginning of the year, and also felt that the spandex ingredient actually affected the price of finished products;
This year, Xinjiang cotton ignited the patriotic sentiments of textile workers. H&M went from crowded to empty;
It was also this year that shipping became the biggest beneficiary of the epidemic, with freight rates soaring dozens of times…
Towards the end of the year, the textile powerhouse was invaded by Delta again. The anchor Wei Ya was banned for tax evasion, and the clothing industry chain that relied on live streaming to bring goods was seriously damaged.
The editor hopes that in 2022, all the textile people will go well and the textile industry will be in full swing!
Let us review together the textile events in 2021!
01 Commodities staged a “super cycle”, and raw materials collectively surged
At the beginning of the new year, the commodity market performed “bullishly” and began a new round of rise. Brent crude oil prices and LME copper futures repeatedly hit new highs. The Reuters Commodity Index (CRB) has returned to pre-epidemic levels after experiencing a V-shaped rebound. At the same time, the domestic futures market has followed suit, and the prices of many varieties have also hit new highs in recent years. The sharp rise in commodity prices is due to stimulus policies boosting inflation expectations, marginal economic improvements boosting risk sentiment, and the continued low level of the U.S. dollar this year.
02China officially approved RCEP, and the world’s great changes have begun
According to the website of the Ministry of Commerce on April 16, on April 15, 2021, China formally deposited the approval letter of the Regional Comprehensive Economic Partnership Agreement (RCEP) with the Secretary-General of ASEAN, which will officially take effect on January 1, 2022.
As the world’s largest free trade zone, after the RCEP agreement takes effect, more than 90% of goods trade among approved members will eventually achieve zero tariffs. According to statistics, by 2030, RCEP is expected to drive a net increase in exports of member countries of US$519 billion and a net increase in national income of US$186 billion. After RCEP takes effect, nearly 30% of China’s exports can achieve zero-tariff treatment, covering China’s trade volume of US$1.4 trillion.
03H&M shoots itself in the foot by touching Xinjiang cotton
Swedish clothing and cosmetics sales group “H&M” issued a statement in March this year to cooperate with the West’s rumors and slander against China’s Xinjiang cotton, refusing to cooperate with any clothing manufacturing factory in China’s Xinjiang on the grounds of so-called “forced labor.” Products and raw materials are also not sourced from the region. Once the incident was exposed, subsequent search results on Taobao and Tmall APPs showed that all searches for “H&M” or “HM” yielded no results and were blocked and removed from the shelves.
04The giant ship blocked the “main artery” of international shipping, and oil prices soared briefly.
On March 23, a very large container ship accidentally ran aground, causing blockage in Egypt’s Suez Canal. As one of the busiest shipping lanes in the world, the Suez Canal connects the Mediterranean Sea and the Red Sea. It is located at the intersection of Europe, Asia and Africa. About 12% of world trade is transported through here. After the accident occurred, it was equivalent to the “precise” cutting off of the Asia-Europe shipping artery, which directly affected the global shipping and bulk commodity trading industries. Affected by this, the price of U.S. WTI crude oil futures surged 5.37% that day, to a maximum of $61.34/barrel, while the price of Brent crude oil futures also rose sharply by 6.06%, to a maximum of $64.39/barrel. The price of domestic crude oil futures 2105 contract once rose sharply by 3.5% to 395 yuan/barrel.
05 Shipping is “hard to find in one box” and the price is almost as high as land transportation
A research report from Yihailan, a shipping big data company, shows that my country’s export container shipping market is in the current situation, and the main reason is still the epidemic and various cascading effects. Currently, due to the impact of the epidemic, container transfer waiting times are long and port transportation capacity is limited, resulting in continued high sea freight prices. In addition, export delivery times are concentrated in August and September, and the rising sea freight prices are now close to those of trains. Overland price.
06Super tornado strikes, factory wails raging
Around 19:00 on May 14, parts of Shengze Town, Wujiang District, Suzhou City, Jiangsu Province were suddenly hit by a tornado. It was initially judged to be an EF3 tornado, with a maximum wind force of 17 in the center. The tornado caused casualties and damaged local power facilities and many houses. The area around Wujiang Zhongtian Inkjet Weaving Co., Ltd. was the most severely affected area. Some factory buildings were left with broken walls, the iron sheets of the buildings were twisted into twists, and some old bungalows collapsed.
07Environmental protection policies are becoming increasingly stringent, and emission restrictions by textile companies in Wujiang and other places affect the operating load
In mid-May, due to environmental impact, water-jet loom enterprises and printing and dyeing enterprises in Wujiang implemented emission restriction policies. It is reported that some enterprises in Shengze Town areaThe solution is to change the situation without changing the medicine. The U.S. House of Representatives passed a Xinjiang-related bill on December 8. The bill will ban the import of all goods from Xinjiang unless the company can provide clear evidence to prove that the goods are not caused by the “suffering” “Produced by forced labor”. Industry insiders are worried that the suppression will escalate in the future. In January 2021, the United States announced a ban on the import of all cotton and tomato products from China’s Xinjiang region. The ban applies to cotton yarn, clothing and textiles made from cotton grown in Xinjiang. Industry insiders are worried that the subsequent ban will affect all Xinjiang-related textiles processed in China and third countries, affecting the already weak downstream demand.
16 The thermal power plant stopped gas and the printing and dyeing factory went on holiday ahead of schedule
As the end of the year approaches, what textile printing and dyeing people are most concerned about is the production shutdown and holiday time of various factories. Especially this year, due to the special situation of the epidemic in Zhejiang, the holiday time node is extremely sensitive. As the Chinese New Year approaches, various notices and signs of upcoming holidays have appeared in the market many times. However, most of them are some individual textile factories or indicate that they may need to give holiday notices in advance, and the vast majority of dyeing factories in the market also set their holiday time based on thermal power plants. There are also printing and dyeing factories that have issued Spring Festival holiday notices and officially have holidays based on steam supply.
17 Crude oil continues to rise and hits a 7-year high, with raw material costs rising
International crude oil prices have continued to rise this year, mainly due to the support of favorable expectations on both supply and demand sides. The supply side mainly comes from Saudi Arabia’s additional production cuts and OPEC+’s production reduction atmosphere, while the demand side mainly comes from the strong fiscal stimulus plan in the United States, the easing of the epidemic, and the rising expectations of natural gas for winter heating. The average international crude oil Brent price from January to November 2021 was US$70.46/barrel, an increase of 81.74% from the same period last year. The trend of international crude oil prices in 2021 will show the characteristics of “continuous upward trend and repeated new highs”.
18. Weiya, the first sister who brought goods, was cold, and small and medium-sized textile companies collapsed.
As soon as the news of Viya’s tax evasion came out, the entire clothing industry was agitated! On the evening of the 20th, the accounts of Weiya Weibo, Taobao Live, Douyin, Kuaishou and other platforms have been blocked. The chain reaction behind this incident is quietly taking place. Behind it, the fabric accessories and clothing manufacturers that rely on their heads to survive are like the Domino brand, which fell to the ground in an instant, and their sales profits were reduced by half.
Goodbye 2021, hello 2022!
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