Textile Observation: The Export Market Is Obviously Shrinking And The Loss Of Orders Is Prominent

Since 2020, due to the shrinking global market and declining demand, the profits of China's textile industry have been eroded during the whole epidemic period, and will continue to bear the losses caused by the rising prices of raw materials.

Foreign analysis reports show that China's textile industry has been suffering huge losses since the beginning of 2020, because the industry is unable to raise product prices. In addition, orders for China's textile industry are down 40% from last year.

According to the estimation of China Textile Import and Export Chamber of Commerce, in the first half of 2020, the order transfer scale of China's textile and garment industry will be about 6 billion US dollars, of which the cotton textile industry order transfer scale is about 1 billion US dollars. The proportion of export orders of companies is between 30% and 30%.

At the same time, more than 90% of companies said their current order plans had been shortened compared with the second half of last year and the fourth quarter, with nearly 59% of companies planning for 13 months. According to the import and export data, the growth rate of China's clothing and home textile products shows a relatively obvious slowdown trend, and most orders of clothing factories will be completed in September this year.

Due to industrial transformation and upgrading, changes in industrial chain layout, and the impact of US tariff on China, China's export orders began to flow out before the outbreak of new pneumonia. According to the data of the U.S. Department of Commerce, China's share of U.S. cotton textile and clothing imports decreased from 23.5% in 2019 to 17.1% in 2021, and the proportion of cotton clothing imports decreased from the first to the second in 2019, and Vietnam became the second major supplier. China's share of US cotton textile and clothing imports fell to 15.3%, second only to Vietnam and Bangladesh, followed by India. In fact, the main reason for the sluggish market is the insufficient demand in the consumer market due to epidemic prevention and control and shrinking foreign markets.

Cotton textile orders are mainly transferred to India, while garment orders are mainly transferred to Bangladesh, Vietnam, India, Indonesia, Cambodia and other countries. According to the report, China Textile Import and Export Chamber of Commerce recently conducted a survey on enterprises, and 85% of enterprises said that the outward migration of customer orders was obvious.