Since the first half of 2021, the prices of upstream textile raw materials have been rising, and orders from downstream garment factories have surged… The steady recovery of industry production and operations and the positive trend have attracted the attention of mainstream media.
Recently, CCTV Finance’s “Zhengdian Finance” column surveyed many foreign trade processing companies. It reported that: due to the obvious recovery of the foreign demand market, domestic clothing exports continue to grow, and the sales of some clothing processing plants Orders are even scheduled for next year. For a time, the topic item “#textilesgarmentsenterprisesordersincreased#” became a hot search topic on Weibo, with netizens praising and saying: “China Textile YYDS!”
In fact, as early as before, when the China Textile Federation Industrial Economics Research Institute released an industry operation analysis report, it pointed out: “In the first half of 2021, China’s textile and apparel exports were 1400.9 billion US dollars, a year-on-year increase of 12.1%. The scale of textile and clothing exports not only exceeded the level of the same period in 2019 before the epidemic, but also set a new record for the same period in history.” That is, China’s textile and clothing exports hit the highest level for the same period in history in the first half of 2021.
Recently, the General Administration of Customs released data showing that from January to July this year, the cumulative export trend of domestic textile and clothing was steady, achieving growth compared with the same period in 2020 and 2019.
In other words, the growth trend of textile and clothing exports continues.
Indeed, with the slowdown of my country’s epidemic situation and the normalization of prevention and control, as well as the continued release of dividends from stable foreign trade policies, it has provided strong support for the growth of my country’s textile exports. Especially with the continued recovery of external demand in the industry, textile and apparel producing countries such as India and Vietnam have been hampered in accepting orders due to the epidemic, resulting in the transfer of some orders to my country, thus showing an unprecedented “surge” trend in recent years.
The external demand market has picked up significantly
Good risk resistance capabilities have successfully won many orders for Chinese companies
This time CCTV’s financial report focused on Jun’an Town in Shunde, Guangdong.
Jun’an Town in Shunde, Guangdong Province is dominated by the denim clothing industry. There are large and small clothing processing factories everywhere, with a total of more than 1,000, and 60% of the clothing companies Mainly exporting. Wang Desheng, general manager of Guangdong Foshan Ligao Garment Co., Ltd., said in an interview with a CCTV financial reporter: He has been exporting denim clothing for more than 20 years. The clothing export market picked up in the first half of this year, and his clothing processing factory has also become busy. , the factory’s orders are currently scheduled until the end of the year. Among them, orders from Australia are mainly mid-trousers, which have been scheduled to January next year, and orders from Italy have also been scheduled to November.
In the production workshop of another clothing company in Shunde, workers are working overtime to rush a batch of orders to the United States. The person in charge here said that due to the epidemic, many textile and garment companies in India, Pakistan and other countries were unable to guarantee normal delivery. To ensure continued supply, European and American retailers transferred a large number of orders to China for production.
It is understood that in the context of repeated global epidemics, Domestic production enterprises have demonstrated good risk resistance, and textile and apparel exports have maintained good growth. Data from the General Administration of Customs of China show that from January to July 2021, my country’s textile and clothing exports totaled US$168.351 billion, an increase of 10.95% over 2019, of which textile exports were US$80.252 billion, an increase of 15.67% over the same period in 2019, and clothing exports were US$88.098 billion. , an increase of 6.97% compared with the same period in 2019.
At the same time, many domestic inland ports have successively opened China-Europe freight trains and rail-sea intermodal trains. Achieve interconnection of import and export goods with more than 50 countries and regions.
Yang Haifeng, deputy director of the Textile and Garment Industry Office of Ganzhou City, Jiangxi Province, said in an interview with a CCTV financial reporter: In the first half of this year, we The export volume is 1.6 billion, a year-on-year increase of 65.4%. We have signed a strategic cooperation agreement with the Hungarian China-Europe freight train cargo distribution demonstration zone and opened China-Europe freight trains. We have currently opened 19 China-Europe freight trains and 5 railway sea lines. intermodal transport.
The traditional peak season of “Golden Nine and Silver Ten” is coming?
The domestic demand market is gradually improving
CCTV Financial Research Report: While the export market is picking up, the domestic demand market in the apparel industry is also gradually improving. improve.
We are about to enter the traditional “Golden Nine and Silver Ten” peak season in the textile and clothing industry. Many clothing companies are stocking up in advance to welcome the upcoming Double Eleven e-commerce festival. Han Zhiqiang is the person in charge of a high-end women’s clothing production company. Most of the factory’s fabrics are imported from abroad. Due to the increase in domestic demand, they have recently increased their production of clothing fabrics.Procurement intensity. Han Zhiqiang told CCTV financial reporters that with the arrival of the peak clothing sales season, sales of women’s clothing in stores across the country have increased significantly in recent times.
The recovery of the domestic market has also allowed some clothing companies to rush to explore the domestic demand market. He Jiyun’s clothing company had been engaged in the foreign trade order business of high-end women’s clothing. Last year, affected by the epidemic, all foreign trade orders were suspended, so they began to transform, switching from export to domestic sales.
Driven by the domestic demand market and the return of overseas orders, the operating conditions of my country’s textile industry have improved and revenue has grown steadily. Data from the National Bureau of Statistics show that from January to June 2021, there were 12,467 enterprises above designated size in my country’s garment industry, with a cumulative operating income of 653.4 billion yuan, a year-on-year increase of 12.99%; total profits of 27.4 billion yuan, a year-on-year increase of 13.87%; clothing output 113.23 billion pieces, a year-on-year increase of 19.98%.
Raw material prices continue to rise
Poor transmission of the industrial chain
o:p>
We still need to maintain a high degree of vigilance in the future
While reporting on the production and operation conditions of downstream garment companies, CCTV Finance stated: Affected by the surge in demand , the prosperity of the textile and garment industry has recovered, and the prices of upstream raw materials have also increased. Bu Ziming, managing director of Shenzhen Huasi Enterprise Co., Ltd., runs a clothing export company in Shenzhen and has been working in the textile and clothing industry for more than 20 years. He said, “We have never encountered such a rise in raw material prices this year. We mainly make silk, and the silk content in silk has increased significantly. From 400,000 per ton at the end of last year, it has now exceeded 500,000 per ton, an increase of almost 30 About %, for example, the price of stretch serine in chemical fibers has increased significantly, rising two or three times.”
Since this year, textile and clothing raw materials have started to rise almost across the board. . The prices of cotton yarn, staple fiber and other textile raw materials have been rising. The price of spandex has increased several times compared with the beginning of the year. The current price is high and volatile, and the product is still in short supply. Since late June this year, cotton has started a new round of upward trend, with a cumulative increase of more than 15% so far.
The rise in raw material prices has gradually eroded the profits of garments, which has doubled the operating pressure of many garment processing companies.
CCTV Finance stated that although the domestic demand market in the domestic garment industry has recovered significantly and garment exports have improved, raw material prices have risen significantly, exceeding the recovery level of the end market, which has a negative impact on the middle and lower reaches of the textile industry chain. Industry enterprises have caused certain production and operation pressure. In addition, normal risk pressures such as structural labor shortages and rising comprehensive costs still need to be resolved.
As for the forecast of export trends, the China Textile Federation Industrial Economics Research Institute also stated: “The current epidemic is still spreading globally, the world economic recovery is unstable and uneven, and my country’s textile exports are facing The external environment is complex, and external risks such as the reshaping of the industrial chain, trade order and political structure caused by non-economic factors are still relatively obvious. Industry exports will still face many tests throughout 2021.”</p
