According to data from the General Administration of Customs, my country’s total textile and apparel exports in October 2023 were US$22.966 billion (a month-on-month decrease of 12.33%), a year-on-year decrease of 8.23%, showing a downward trend for the sixth consecutive month, and the year-on-year and month-on-month decreases were both larger than the previous month (9 In March, my country’s textile and apparel exports were US$26.197 billion, a year-on-year decrease of 4.80%).
Under the influence of factors such as the continued sluggish demand in the international market and the gradual decline of domestic cost advantages, my country’s textile and apparel industry has encountered many obstacles in the recovery of production, sales and exports. The contradiction between “strong expectations and weak reality” is more prominent.
According to feedback from some cotton spinning enterprises in Shandong, Jiangsu, Hubei and other places, since late October, the ex-factory price of cotton yarn has generally been reduced by more than 1,000 yuan/ton. Among them, OE yarn and high-count carded/combed yarn have slightly lower corrections, and C16- C40 ring spinning/compact spinning yarn quotations have been slightly lowered, but the current profits of textile companies have still improved.
The biggest problem currently encountered by enterprises is the lack of new orders, the workshop operation rate is difficult to maintain at normal levels, the yarn accumulation rate continues to rise, and cash flow is gradually tightening. Although cotton yarn traders have cut prices and sold goods and the impact of large-scale imports of cotton yarn Large-scale profit-sharing measures were taken, but the effect was not obvious.
A medium-sized yarn mill in Zibo, Shandong Province said that based on the current cash flow, yarn inventory and future expectations, if new orders are limited before mid-December, it can only reduce production or even suspend production in stages. In terms of adjusting equipment and processes to transfer blended yarn and chemical fiber yarn, the company believes that on the one hand, the output of the blended yarn market has been in an “oversaturated” state, and it is self-evident that it is difficult to open up the market; on the other hand, Europe, the United States and Japan There is still a long way to go to recover the textile and clothing consumer markets in other countries. The exports of blended textiles, chemical fiber fabrics and clothing have stabilized in the short term, and there is great pressure to rebound. Judging from the survey, some mainland cotton textile companies are expected to reduce production suspensions at a higher rate than the same period in 2022. A few companies have even entered the Spring Festival holiday ahead of schedule, and the cotton consumption boom may further deteriorate.
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