China Textile Orders Pick Up Observation: Raw Material Prices Rose In The Morning And Rose In The Afternoon

Recently, it has been reported in the media that affected by the global epidemic of new crown pneumonia, the start-up of domestic textile enterprises in India was hindered, resulting in a large number of textile orders moved to China. The surging news reporter learned from textile enterprises in Keqiao, Shaoxing, Zhejiang, an important textile town in the Yangtze River Delta, that a large number of overseas orders have been transferred from India recently. In addition, affected by the superposition of foreign trade and domestic demand orders, the price of textile raw materials rose by about 20%.

"From the beginning of October, foreign trade orders began to soar, and customers kept adding orders every day. The price of raw materials is rising every day, rising in the morning and rising in the afternoon. " Shaoxing Keqiao senru Textile Co., Ltd. enterprise head said to reporters.

The enterprise mainly produces knitted fabrics, such as polar fleece, cashmere, flannel, and so on. The person in charge of the enterprise told reporters that, according to his understanding, the textile factories in India and Bangladesh that had cooperated before could not be started now, so the orders flow to China. "There are additional orders from Europe, America, Japan and South Korea. From June to September in previous years, we exported an average of one container a day. This year, affected by the epidemic situation, the export volume decreased sharply before September, and now the export orders have returned to 70% of the previous years. "

At the same time, the person in charge said that as the domestic "double 11" Shopping Festival was about to start soon, merchants prepared goods in advance, which also led to a sharp increase in domestic fabric orders in the near future. "Domestic trade and foreign trade orders collided this year, but we couldn't increase production capacity urgently. Recently, we sold the inventory of last year and the year before last!" he said.

With the surge in orders comes the rise in raw material prices. "The price of textile raw materials FDY (fully drawn yarn) and DTY (stretch textured yarn) dropped to 5 or 6 yuan per kilogram before the epidemic, and now it has risen to 7 or 8 yuan per kilogram. The price of spandex fluctuated from 1% to 2% in the past years, and now the price increase has exceeded 10% and nearly 20% The person in charge of the enterprise said.

According to the China Cotton Association, as of October 20, China's cotton price index (ccindex3128b) was 14923 yuan / ton, an increase of 2126 yuan per ton, or 16%, from the average price in September.

Previous media reports showed that since September, many large-scale export-oriented textile enterprises in India have been unable to guarantee normal delivery due to the epidemic situation, while European and American retailers have transferred many orders originally produced in India to China in order to ensure that supplies in the Thanksgiving and Christmas sales seasons will not be affected.

Recently, the relevant person in charge of the foreign trade department of the Ministry of Commerce responded that it was normal market behavior for Indian textile orders to be transferred to China. China took the lead in resuming work and production, which effectively guaranteed the supply of the international market and supported the smooth operation of the supply chain of the international industrial chain.

According to public information, India is the world's largest cotton producer and the world's second largest textile and garment producer. The textile and garment industry is one of the largest sources of foreign exchange income in India, accounting for about 15% of India's total export revenue.

Statistics from the General Administration of customs also confirm that China's textile exports are recovering. Li Kuiwen, a spokesman for the General Administration of customs, recently said that in the first three quarters, the export of seven categories of labor-intensive products such as textiles and clothing reached 2.59 trillion yuan, an increase of 5.4%. Among them, the export of textiles including masks was 828.78 billion yuan, an increase of 37.5%.

According to statistics, in August, China's textile exports amounted to US $14.72 billion, up 47% year-on-year; and clothing exports were US $16.21 billion, up 3.2% year-on-year, achieving the first positive monthly growth in the year.

According to the data obtained from Alibaba international station, the number of orders for fabrics and textile raw materials in China has increased by more than 100% since May; the number of orders in the clothing industry has increased by more than 200% over the same period last year, and the orders of the industry have tripled in July.

In addition, many companies which were engaged in textile domestic trade business have also received orders from foreign trade companies in this order tide. Zhejiang Jinhua Henggang Home Textile Co., Ltd., the head of Zhejiang Jinhua Henggang Home Textile Co., Ltd., told surging journalists that the company recently received an order from Zara, an international fast-selling brand, on Alibaba's 1688 domestic trade platform for the first time.

"The order is several hundred thousand tablecloths, accounting for 60% of the company's total output this year, which makes the company's turnover this year five times higher than that of the same period last year. I didn't expect to receive an order from Zara. These tablecloths were produced in India before. In order to ensure the completion of this batch of orders, we have opened a new production line, expanded staff, and worked overtime every day and night. " The person in charge said.

Hebei Gaoyang Rongtian Textile Co., Ltd. related person in charge told reporters that since September, the company has received a surge in foreign trade orders, "we have been a factory for 20 years, and have not been so centralized and popular. One month, orders for towels reached 2 million. As a domestic trade oriented business, it was four or five years ago that we last came into contact with Indian orders. "

Driven by the market, textile industry shares also experienced a wave of significant gains. From October 9 to 19, the closing price of Jujie microfiber (300819) increased by 97.77% in seven trading days. On October 19, Jujie microfiber issued a notice on abnormal fluctuations in stock trading. According to recent social media reports about the return of Indian textile orders to China due to the epidemic situation, the company did not find any increase in the number of orders due to this issue after multi-party verification by the company.