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Is the textile industry good or bad in the second half of 2016?


The special market around the G20 has come to an end, the textile market in the second half of the year can be described as negative and positive coexistence. Will the textile industry, which has been in an awkward position in the first half of the year, see a bumper harvest in the second half due to the joint pressure from upstream and downstream as well as the recession of the export market? Or is it a continuation of the "sandwich" awkwardness?

Export pressures have increased but remain supportive

China's textile exports have shown negative growth so far, falling 2.3 per cent year on year in the first five months of this year, but the decline has narrowed from last year and the beginning of this year. The industry expects pressure on China's textile exports to increase in the second half of this year, but there is still momentum behind it.

Industry analysts believe that since this year, the world economic recovery is slow, the recovery of external demand is still insufficient, China's textile industry export prospects are also many uncertainties. Since the second quarter of this year, China's textile exports are expected to benefit from the depreciation of the RENMINBI and other factors in the second half of the year.

In addition, it should be noted that in recent years, the overall economy of the European Union has been sluggish. The export of Chinese textile and clothing to the European Union has declined significantly. In the first Five months of this year, the export of Chinese textile and clothing to the European Union declined by nearly 4% compared with the same period last year. In recent years, due to the active economic and trade relations between China and the UK, the export proportion of Chinese textiles and clothing to the UK has increased. The UK is a large and relatively stable market for Chinese textiles and clothing in the EU. Although China's textile and garment exports to the EU fell in the first five months of this year, they still maintained a growth rate of about 3% to the UK. However, after the Brexit vote, market instability has increased, which may affect The export of Chinese textiles and clothing to the UK and the EU.

Dyeing mills in some areas are pushing up prices

Dye due to restricted by domestic environmental protection, soaring prices doubled, the soaring, the government limits, must satisfy, therefore must invest heavily again construction of dyeing and finishing industry wastewater pretreatment and water reuse in multistage treatment facilities, making the operation of the sewage treatment cost increase again, workers' wages, annual growth of water consumption, steam electricity, enterprises have been unable to control production costs continue to rise the pressure, can't keep small profit operation.

At present, many enterprises have chosen to increase prices together. It is understood that there are no less than 15 Jiaxing printing and dyeing enterprises, compared with the dyeing fee price in the first half of this year, the conventional products increase 1000-2000 yuan/ton, the increase in 10%~20%, and a few varieties of the price or maintain the original price.

In addition to Jiaxing, printing and dyeing collection areas in Suzhou, Shishi and Shaoxing have increased printing and dyeing processing fees to varying degrees since August in order to maintain production and operation. Many traders shake their heads straight, crying suddenly went up 2000, unable to communicate with customers, unable to accept! Business is tough!

There are still many uncertain factors in raw materials

Polyester polyester, the trend of the second half of the year is still difficult to judge, the early production of polyester plant after the G20 operation rate is believed to be at a new high, and upstream and downstream supply and demand relationship, xiaobian think, is still the decisive point of this game.

On the contrary, before the G20, relying on the G20 market for joint security, speculation, the impact on the market will be weakened.

PTA, in the second half of the year, there are a lot of equipment stop production, maintenance, I believe there will be some support, but the trend of crude oil price is still confused, the Federal Reserve interest rate, OPEC meeting progress, the cost of PTA can provide much support is still unknown.

To sum up, the situation of textile industry in the second half of the year is still not clear, good and bad coexistence, small partners for the second half of the market and reported what attitude?

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