Production And Marketing Situation Is Grim, Textile Enterprises Lack Confidence

In 2019, the development of China's textile industry will face more and more risks and challenges at home and abroad. The whole industry adheres to deepening the structural reform of the supply side, continues to accelerate the transformation and upgrading, and strives to overcome the downward risk pressure. The overall prosperity and production situation are generally stable. However, under the multiple pressures of slowing down domestic and foreign market demand, more complex trade environment and continuous increase of comprehensive costs, the driving force of enterprise investment growth is weak, the level of efficiency is declining, and the main economic operation indicators are showing a slowdown trend.

Since 2020, the new crown pneumonia epidemic has spread globally, and the industry is facing huge environmental pressure and systemic risks, and the supply and demand sides of the industry are experiencing unprecedented impact.

At the same time, under the influence of foreign epidemic situation and the pressure of trade friction between China and the United States, the production scale of the textile industry has declined, and most of the goods have changed from export to domestic sales. It is understood that most of the downstream products are towel based products. This impact has brought problems to the downstream market, such as increased inventory, difficulty in capital operation, halving production and even stopping production. Since June, the textile orders of Julu County Weihua Textile Co., Ltd. have been reduced. Due to the unstable quality of C40 yarn and the narrowing of downstream market, the company has increased steam spinning and double twisting machines, expanded sales and rectified the quality level of high count yarn. At present, the raw materials are mainly reserved Xinjiang cotton by auction, with the price of 12561-12730 yuan / ton (the factory price is settled by public weight, with tickets and excluding freight), while the real-estate cotton is mainly composed of cotton, with a price of about 11800 yuan / ton (the factory price is settled by gross weight and with bills).

Since the outbreak of the epidemic, the domestic demand of textile and garment products has declined significantly. According to the data of the National Bureau of statistics, in June, the total retail sales of consumer goods in China totaled 3352.6 billion yuan, a year-on-year decrease of 1.8% (the actual decrease after deducting the price factor is 2.9%, except for special explanations, the following are nominal growth), and the decline rate is 1.0 percentage points lower than that of the previous month. From January to June, the total retail sales of consumer goods reached 17225.6 billion yuan, down 11.4% year on year. In terms of textile and clothing retail, in June 2020, the total retail sales of national textile and clothing reached 105.9 billion yuan, down 0.1% compared with the same period last year. From January to June, China's total retail sales of textile and clothing exceeded 500 billion yuan, down 19.6% year-on-year.

Not only that, with the obvious deterioration of economic benefits, production and sales have fallen sharply in the case of serious shortage of demand. The investment scale of textile enterprises has shrunk sharply, and the income and profit have also declined. Textile enterprises generally expressed a lack of confidence in the future.

China's textile industry is still facing severe challenges in the whole year due to complex environment. The global economy has fallen into recession due to the outbreak of new crown pneumonia. The shortage of international market demand is still normal in the second half of the year, and the export situation of textile industry is still grim. However, the policy of "six important factors to ensure the stability of domestic production" and "six factors to ensure the stability of domestic production" and "to provide more favorable conditions for the domestic residents to stabilize production and provide more favorable conditions for the domestic residents.