Under The Epidemic Situation, The Textile And Apparel Industry's Economic Operations In The First Quarter Were Summarized.

- May 17, 2020-

According to data from the National Bureau of Statistics, in the first quarter, the capacity utilization rate of the textile industry and the chemical fiber industry were 67.2% and 74.4%, which was slightly better than the 67.2% capacity utilization level of the national manufacturing industry, but it was 10.5 and 8.8 percentage points lower than the same period of the previous year. .


Affected by the epidemic situation, the orders of textile companies in the domestic and foreign markets decreased significantly in the first quarter, the efficiency situation has seriously declined, production and operation have encountered unprecedented difficulties, and investment and development confidence are obviously insufficient. Statistics show that in the first quarter, the main operating indicators of the textile industry all showed a negative growth trend, and maintaining a stable operation is facing a greater test.


According to the cumulative economic operation data from January to March 2020, through comparative analysis with the data of the same period last year, indicators such as the output and output value of the tracking cluster in March decreased significantly. In terms of output, the total output of various types of yarn in cluster enterprises decreased by 33.6% year-on-year, and the output of cloth decreased by 37.2% year-on-year; in terms of economic indicators, the operating income of cluster companies decreased by 24.5% year-on-year, and the total profit decreased by 53.4% year-on-year.


The latest trade data show that in the first quarter, China's textile and apparel exports fell more than the level of the 2008 global financial crisis. According to the Customs Express data, from January to April, China's textile and apparel exports amounted to US $ 66.62 billion, a year-on-year decrease of 10%, and the decline was narrowed by 8 percentage points from the first quarter. Among them, textile exports were US $ 37.31 billion, an increase of 2.9% year-on-year. Exports in April were US $ 14.62 billion, an increase of 51.1%. Apparel exports were US $ 29.31 billion, a year-on-year decrease of 22.3%. 27.7% reduction. The product export structure shows that the scale of clothing exports is much lower than that of textiles. From the perspective of market export structure, China's exports to developed countries and emerging markets declined across the board. From January to March, the industry's textile and apparel exports to the United States, Japan, the European Union, ASEAN, and Africa fell by 29.2%, 16.8%, 14.3%, 13.1%, and 11.7% respectively year-on-year.


Since April, thanks to the completion of stock orders and the surge in demand for masks, protective clothing, etc., the decline in China's textile and apparel exports has narrowed rapidly. According to reports, in the first quarter, medical masks, medical protective clothing and other medical protective equipment became the "hard currency" in the global market. From the initial hassle to today's ease, industrial textile companies rely on perfect raw materials, equipment, finished products and other upstream and downstream industries The chain quickly provided strong support for epidemic prevention and control, and also achieved self-worth enhancement. Especially for medical and health supplies-related production enterprises, the operating performance increased significantly.


In terms of clothing, according to data from the National Bureau of Statistics, from January to March, the textile production enterprises completed a total of 46,186,69,600 pieces of clothing output, a year-on-year decrease of 20.29%, of which 2,52,155,900 pieces of knitted clothes, a decrease of 23.73% year-on-year. From January to March, the main business income of 2110 knitted fabric companies was 48.546 billion yuan, a year-on-year decrease of 23.64%, and the total profit was 1.927 billion yuan, a year-on-year decrease of 610 million yuan; 3679 enterprises of knitted garments had a main business income of 834.06 100 million yuan, a year-on-year decrease of 21.47%; total profit was 2.97 billion yuan, a year-on-year decrease of 1.326 billion yuan.


In the first quarter, the retail sales of apparel, shoes, hats and knitwear for units above designated size in China decreased by 32.2% year-on-year, while the retail sales of online wear products decreased by 15.1% year-on-year, 35.5 and 34.2 percentage points lower than the same period last year. In this regard, some experts said that although the domestic epidemic situation has been effectively controlled and consumption is restarting, with the severity of the European epidemic situation, knitting enterprises that mainly focus on foreign trade or processing will not be too good in the short term. Enterprises must be mentally prepared.

The China Textile Industry Enterprise Management Association predicts from the surveyed enterprises that with the international epidemic being gradually controlled, if the market trend becomes clearer in May, the industry will gradually improve. If the market situation does not improve in June, most companies will face a life-and-death exam this year.


At present, most textile and apparel companies have shown strong confidence and resilience in the face of the impact of the epidemic. Most companies said that the current production and operation impact is temporary and limited. Although the performance in the first quarter has declined, as production and operation gradually return to the right track in the second and third quarters, the impact on the whole year should be small and controllable.