According to the latest global textile industry survey conducted by the International Textile Manufacturers Federation (ITMF) in July 2023, the global textile industry is still showing signs of improvement despite the continued unfavorable situation. The survey shows that an increasing number of companies have successfully adapted to the challenging business environment, leading to improvements across the globe.

The global textile industry is gradually recovering, and there are clear signs of improvement

Asia continues to be the most difficult region, while South America has made a significant return to positive operating conditions. Expectations for global business have remained unchanged since March 2023. However, optimism remains high in all regions, with the exception of East Asia where concerns remain.

Segmentation trends: Weavers, printing and dyeing and finishing sectors all reported negative expectations

According to the survey, textile mills, printing and dyeing and finishing departments all reported negative expectations. Despite a slight increase in order volumes in July 2023, the survey reported negative order volumes across all regions and regions. Although apparel, home textiles and technical textile producers showed significant improvement, the overall situation remained negative. It is worth noting that the number of unfilled orders has reached its lowest level since the survey, with only South American and functional textiles showing growth.

Capacity Utilization and concerns: The industry is facing challenges on multiple fronts

Capacity utilisation has fallen to its lowest level since the survey began. Asia and Europe have seen a steady decline since 2021, and producers of home textiles and functional textiles have also recently seen declines. The main global concern in July 2023 is weak demand, followed by rising raw material prices due to inflation, geopolitical issues and rising energy prices. However, some positive signs include the fact that logistics, energy and raw material costs have fallen in recent months and that geopolitical issues have not come to the fore further.

Inventory levels and order cancellations: There is hope amid the challenges

Globally, the number of order cancellations remains relatively low due to average or low product inventories for most companies in the textile supply chain. Notably, 96 percent of apparel manufacturers also reported average or low inventory levels, with cotton mills, weavers and fiber producers having the highest inventories. The ITMF survey shows that the global textile industry is recovering and companies have adapted to the challenging environment and improved. However, challenges remain, especially in certain regions, while concerns about weak demand and other external factors continue to impact the industry's trajectory. The ability to effectively manage these challenges and seize on positive trends will be critical to sustaining the industry's recovery.

The textile market may usher in a wave of price increases

Under the influence of crude oil, polyester has experienced five weeks of continuous growth, as of the end of the working day last week, the product prices of 150D polyester filament are: FDY 8300 yuan/ton, POY 7685 yuan/ton, DTY 9200 yuan/ton. Although the increase is not large each time, the overall float has reached 300 yuan/ton.

The price of polyester shows that the current stock of raw materials in the society is very low, the basic stock is concentrated in the hands of polyester factories, and the purchase has become a habit. Statistics show that the overall inventory of the polyester market is concentrated in 18-28 days; Among them, POY inventory is 20-28 days, FDY inventory is around 18-27 days, and DTY inventory is around 16-27 days.

Recently, the market seems to be gradually active, some fabrics are popular, and the price has risen slightly. Although the market has shown signs of heating up, the actual large orders have not yet been fully implemented, and most customers are still waiting and watching.

"The recent market is a little better than the last two weeks, at least there are more phone calls, more people to inquire." It's going to be the golden Nine season soon, and I think the downstream customers are getting ready, so the market is a little busy." A business owner said. Although everyone is teasing the profit is too low, but there are still orders, even if there is no order can also be properly produced inventory. Seeing the end of August, "gold nine silver ten" is getting closer and closer, many textile bosses are still very much looking forward to this.

However, according to the current situation, August did not usher in a turning point, but the recovery of demand also needs to be buffered, even if the order can not be issued in large quantities as the peak season in previous years, but "gold nine silver ten" will usher in a wave of market.

To sum up, in the current strong support of crude oil, demand gradually picking up, in the short term polyester filament prices are estimated to be stable and good, but the rise is limited, really can have a large increase, you have to wait until the peak season real order issued time.

Domestic sales have steadily picked up, and the semi-annual net profit of textile and garment enterprises has increased significantly

Recently, A-share apparel listed companies have released the first half of the performance forecast. As of August 9, 23 companies have issued interim performance forecasts or letters for 2023. Among them, the net profit attributable to shareholders of 9 listed companies increased in advance, and 3 lost.

In this half year, the external environment improved and the restoration of the mass social scene brought a significant increase in the demand for socially related footwear. Since the beginning of this year, the gradual recovery of the market has led to the acceleration of the recovery of six enterprises to achieve net profit and turn losses into profits; The margin of net profit loss of five enterprises narrowed compared with the same period last year.

Domestic sales are steadily picking up

Since the beginning of this year, China's production and life order has been restored in an orderly manner, and the expansion of consumption scenarios and the effective landing of pro-consumption policies have driven the domestic demand for textiles and clothing to achieve better growth.

According to the relevant data released by the National Bureau of Statistics, from January to June 2023, the total retail sales of social consumer goods were 22,758.8 billion yuan, an increase of 8.2%. Among them, in the first half of the year, the retail sales of clothing, shoes and hats and textile products above quota in China increased by 12.8% year-on-year, and the cumulative growth rate has maintained a double-digit growth level since April this year. New models such as live short videos led to better growth of online retail channels, the first half of China's online retail sales of wear goods increased by 13.3%, the growth rate of 10.9 and 4.7 percentage points compared with the same period last year and the first quarter of this year, higher than the retail growth rate of eating and using goods in the same period.

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Changzhou Fubon Chemical Fiber Machinery Factory Technical is a professional manufacturing supplier that develops and produces various chemical fiber machinery as its main body. It integrates scientific research, development, production and sales. In order to meet market demand, our factory has established a comprehensive chemical fiber spinning silk silk Experimental base provides customers with good equipment and technical services. We mainly provide customers with various chemical fiber sets of equipment such as polyester, Parion, nylon, aminoly, and undertake various related equipment transformation projects and custom services.