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[What will happen to the textile market in 2020? Come see these good signs]
Release date:[2020/1/3] Is reading[615]次

Looking back on 2019, due to the impact of the macroeconomic downturn and the pressure of environmental protection, most textile companies are facing production shutdowns, production cuts, and even closed doors. Most of the companies that have persisted are currently groping for the transformation and upgrading model. It can be said that 2019 It's not easy!


I believe that textile people are more concerned about the textile market in 2020? The recent multiple positive news may allow us to glimpse some signs of the market next year.


RCEP signs next year, China's textile exports may reverse the decline

On the evening of November 4, the leaders of 10 ASEAN countries and China, Japan, South Korea, Australia, New Zealand, and India issued a joint statement after the meeting, saying that in addition to India, 15 members of the Regional Comprehensive Economic Partnership Agreement (RCEP) All text negotiations and virtually all market access negotiations have been concluded, and an agreement is ready to be signed next year.


As we all know, Southeast Asia is an emerging market where the textile industry is developing rapidly. In recent years, both textile imports and exports have grown rapidly. Japan, South Korea, Australia, and New Zealand are also important textile exporting countries in China.


Today's Southeast Asian textiles have sufficient labor advantages, but the infrastructure and technology are weak. Once the agreement is signed, the complementary performance of China's and Southeast Asian textile industries will become more apparent. China ’s textile raw materials, grey fabrics and fabrics can be manufactured at lower prices. The cost is shipped to Vietnam, Malaysia and other places for processing, and the local labor force is used to make garment exports.


For developed markets such as Japan, South Korea, Australia, and New Zealand, after the establishment of the RECP, textile export tariffs have been further reduced, and Chinese textiles will be more competitive than they are now.


Gradually refine environmental protection policies to eliminate “one size fits all”

Since September this year, the Ministry of Ecology and Environment has launched a three-month special rectification operation, focusing on correcting indiscriminate "one-size-fits-all" behaviors in some local ecological environmental protection work, and effectively protecting the people's environmental rights and the compliance of law-abiding enterprises. appropriate rights.


On October 24, China released the first administrative regulation for optimizing the business environment, the “Regulations on Optimizing the Business Environment.” For the “one size fits all”, there is a special provision in the “Regulations”. Except for specific circumstances, market entities must not be required to generally stop production, Suspension of business is conducive to correcting the above problems by means of rule of law.


Under the official Weibo article of the Ministry of Ecology and Environment, I also received retweets from relevant departments in various regions. It is presumed that under the guidance of national policies, the one-size-fits-all problem will gradually improve, and many companies that have stopped production in compliance will also resume operations. At the same time, for the owners of the textile and chemical fiber industry, follow the development of the textile technology innovation field, accelerate the layout of new products, new formats, increase investment in scientific and technological innovation, grasp the main features of scientific and technological innovation such as green, intelligence, and new materials, and work hard to make The textile and apparel industry is developing towards high-end and diversified.


On November 25, the Ministry of Ecology and Environment forwarded the editorial of the People's Daily to criticize the issue across the board again, demanding refinement of environmental protection. And Hebei Province took the lead in establishing a positive list of ecological environment supervision nationwide, giving priority to ensuring compliance with the production and operation activities of compliant enterprises, and "non-stop, unlimited production, non-inspection, and non-disturbance" during the emergency emission reduction period for severely polluted weather. From this point of view, the national wind is changing and environmental protection policies are gradually being refined, which is good news for our textile printing and dyeing industry.


Involving 15 textile and apparel products are excluded

China's Ministry of Commerce recently stated that China and the United States have agreed to phase out tariff increases in the past two weeks.


On November 7, local time in the United States, the Office of the United States Trade Representative (USTR) announced the fourth batch of product exclusion announcements under the US $ 200 billion tariff-added commodity list. This exclusion involved a total of 36 products, including 3 textile and apparel products Tax ID.


Up to now, the United States has released five batches of 200 billion product exclusion lists, of which the first batch involves two textile and apparel product tax numbers, the second batch involves three textile and apparel product tax numbers, and the third batch involves seven textile and apparel product tax numbers. The fourth batch involves 3 textile and apparel product tax numbers, the fifth batch does not include textile and apparel products, and the total of the above 15 textile and apparel product tax numbers.


Excluded products will no longer be subject to 301 tariffs when exported to the United States. The exclusion period can be traced back to the effective date of the 200 billion list-September 24, 2018.


At present, five exemptions have been passed for 200 billion Chinese exports to the United States, and a total of 199 products have been excluded from tariffs. In addition, the United States has launched a 300 billion tariff exclusion application on October 31, 2019.


In past surveys, textile owners almost agreed that the increase in tariffs caused by the Sino-US trade friction was the main reason for the "coldness" in the textile foreign trade market this year.


For textile bosses, the tariffs imposed by the United States "lead the whole body." Some weaving companies do not export themselves, but downstream fabric, clothing, and luggage companies purchase their products for processing and then export. However, today's 25% and even 30% tariffs are unaffordable in the production, processing and distribution of products.


Now that China and the United States have begun to gradually increase the tariffs imposed on them, many orders that cannot be made now may be fulfilled. The situation that the US bills have been "cut off" like this now will be greatly alleviated.


E-commerce Festival may ease downstream clothing inventory

According to relevant data, this year's "Double Eleven" chop hand festival, Tmall apparel order list, down jackets ranked top.


In addition to down jackets, other women's clothing, such as woolen coats, skirt suits, etc. are always on the hot list. From this, it is clear that people's demand for winter clothing is still great. After the Double Eleven, as the temperature decreases, people ’s passion for winter clothing will once again ignite the subsequent "Double Twelve" and "New Year's Day" e-commerce festivals.


For clothing companies, the e-commerce festival can ease some inventory pressure. As the end customers of weavers and traders, clothing companies have also ushered in the cold winter this year. The big reason is because of high inventory!


The inventory problem affects the turnover of the company's cash flow in the short term. If it is not resolved for a long time, it will even lead to the collapse of cash flow, and the longer the inventory is backlogged, the more the clothing will depreciate! Therefore, "destocking" is the top priority for apparel companies.


"Only when apparel companies lower their inventory, they will come to place orders with us." Although this sentence is a bit one-sided, it also shows that the inventory of apparel companies has dropped, and the demand for fabrics and yarns will increase next year.


Affected by various factors, this year's textile market is "challenged", but there are already many signs that the situation in 2020 may be improved to a certain extent compared to this year. All in all, the difficult time has passed. In the future, textile companies cannot lose confidence. They must be prepared in advance and firmly believe that difficulties are always temporary.


Source: Global Textile Network


Xuzhou Heping Chemical Fiber Co., Ltd. is a professional manufacturer and supplier of polypropylene products such as polypropylene high-strength yarn, polypropylene industrial yarn, polypropylene high-strength yarn, high-strength polypropylene network yarn, and split film industrial yarn, which are welcomed by the market.


You also want to know more product information, please contact: Mr. Wang 187 5178 8889 Website: http://www.xzhp.com/


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