Entering 2021, Chinese textile and apparel export enterprises will be very busy. At present, most of the cotton spinning enterprises order orders until the Spring Festival, and some enterprises even order orders until March and April. The cotton yarn market ushered in the new year market. Industry analysts generally believe that China's textile and apparel exports will continue to improve in the whole year of 2021, driven by many favorable factors.
In 2020, the new crown pneumonia epidemic has swept all over the world. The Chinese textile industry has withstood the tremendous pressure brought by the epidemic, seized the opportunity of explosive growth in demand for masks and protective clothing brought by the epidemic, and not only realized the rapid recovery of production after the Spring Festival , The rapid expansion of the production capacity of textiles such as masks, and the repeated epidemics in Southeast Asia and other places, returned some textile and apparel foreign trade orders.
According to the latest customs data, China's textile and apparel exports in December 2020 were US$26.2 billion, an increase of 7.2%, of which textile exports were US$12.29 billion, an increase of 12.7%, and clothing exports were US$13.91 billion, an increase of 2.7%. From January to December 2020, China's textile and apparel exports totaled US$291.22 billion, a year-on-year increase of 9.58%. Among them, textile exports were US$153.84 billion, a year-on-year increase of 29.2%; clothing exports were US$137.38 billion, a year-on-year decrease of 6.4%.
In the fourth quarter of 2020, with the improvement of the domestic epidemic situation, vaccine application, the Regional Comprehensive Economic Partnership Agreement (RCEP), the domestic and international dual cycle, and the demand-side reform, market demand has improved significantly, and the total textile and apparel exports in 2020 will increase by 9.5 %, stimulating the overall export growth of national goods trade by 1%. Among them, textiles have achieved growth for 9 consecutive months since April, and clothing has reversed since August, achieving growth for 5 consecutive months.
"Chinese textile companies have seized the opportunity of demand for anti-epidemic materials such as masks and protective clothing, and have driven the decline in textile and apparel exports to narrow when the supply and demand phases are mismatched and the export of traditional clothing has fallen sharply. This transformation not only helps domestic textile companies to get out of trouble, but also Contribute China to the cause of global epidemic prevention." Liu Jie, an analyst at Zhuo Chuang Information, said that since May 2020, the growth rate of China's textile and apparel has increased significantly compared with the previous three years. This reflects that as the epidemic is gradually controlled, the global textile and apparel The continuous improvement of the demand margin has driven the domestic textile market to bottom out and rebound, and together with domestic demand, China's textile raw materials have come out of a wave of demand-driven growth. According to Zhuochuang’s monitoring, the cotton futures have resonated more than August from the end of March 2020 to the present. Among them, Zheng Cotton has increased by more than 30%, and U.S. cotton has increased by more than 50%. Both have recovered the decline in the epidemic, and domestic and foreign cotton prices have increased by more than 10% year-on-year. This is not easy in the context of this year's economic bottoming and a shock rebound.
"If there is no black swan incident, the cotton yarn market will usher in the traditional peak season of'Golden Three Silver Four' after the Spring Festival, and cotton yarn prices are also expected to rise to a new level. However, due to the recent severe domestic and foreign epidemic situation, the United States prohibits imports from Xinjiang, China. For cotton products, due to changes in short-term market drivers, some companies are worried that orders will fall after the Spring Festival.” Liu Jie said that in the long run, as the epidemic is gradually controlled and vaccines are applied on a large scale, stimulus policies from countries around the world have increased. The economy continues to improve and the pattern remains unchanged. In addition, the signing of RCEP may benefit China's textile and apparel exports. The domestic and international dual-cycle and demand-side reform policies will gradually take effect. The global textile and apparel market may continue to improve, and China's textile and apparel exports will also continue to improve.
(Source: International Business Daily)
