Data Analysis On Economic Status Of Filament Weaving Industry In 2021

Since 2021, China's filament weaving industry has shown a good recovery and development trend, the main operating indicators are rising, the production situation is gradually improving, the domestic market continues to recover, the foreign trade market is running smoothly, and the enterprise benefits are improved. Looking forward to 2022, although there are many uncertain factors, the development foundation and conditions of filament weaving industry are good, and the adaptability to the "double cycle" economic mode is strong, and it is expected to develop steadily and healthily.

　　 1、 Sustainable recovery of industry benefits

According to the statistics of the National Bureau of statistics, from January to November 2021, the business income of chemical fiber weaving and printing and dyeing finishing industry above designated scale in China will increase by 18.7% year-on-year, and 7.6% compared with the same period in 2019; Operating costs increased by 17.5% year-on-year, 7.2% compared with the same period in 2019; The total profit increased by 41.2% year-on-year, and still decreased by 2.1% compared with the same period in 2019; The profit margin was 3.4%, 0.6% higher than the same period last year, and still 0.3% lower than that of the same period in 2019.

From the perspective of industry segmentation, from January to November, the business income of chemical fiber weaving industry (above designated) increased by 18.5% year-on-year, and 6.9% compared with the same period in 2019; Operating costs increased by 17.3% year-on-year, 6.0% compared with the same period in 2019; The total profit increased by 43.4% year-on-year and still decreased by 1.7% compared with the same period in 2019; The profit margin was 3.2%, 0.6 percentage points higher than the same period last year, and still 0.3 percentage points lower than that of the same period in 2019. The operating revenue of chemical fiber dyeing and finishing industry (above designated) increased by 19.5% year-on-year, 10.7% compared with the same period in 2019; Operating costs increased by 18.6% year-on-year, 12.9% compared with the same period in 2019; The total profit increased by 35.1% year-on-year and still decreased by 3.3% compared with the same period in 2019; The profit margin was 4.6%, 0.5 percentage points higher than the same period last year, and still 0.7 percentage points lower than that of the same period in 2019.

Table 1 Summary of main economic indicators of China's chemical fiber weaving and dyeing and finishing industry from January to November 2021

　　 Source: National Bureau of statistics

It is worth noting that, compared with the same period in 2019, from January to November 2021, the business income of chemical fiber weaving industry above Designated Size in China increased by 6.9%, the operating cost increased by 6.0%, the total profit decreased by 1.7%, and the profit margin decreased by 0.3%. The profitability has not yet recovered to the level of the same period before the epidemic. This is because in the same period of 2019, the loss area of the industry was 11.7%, now it has expanded to 14.1%, and the loss amount of loss making enterprises has increased by 37.3%. The three expenses of enterprises have also increased in varying degrees, of which the sales expenses increased by 8.2%, the management expenses increased by 8.4%, and the financial expenses increased by 11.5%. Accounts receivable increased by 14.0%, finished goods inventory increased by 8.7%, the proportion of credit sales of enterprises was high, the inventory was high, there were certain financial risks, and the profitability was insufficient.

The above data show that the economic benefits of China's filament weaving industry are still in the process of continuous recovery. Since 2021, affected by the repeated outbreaks of Xinguan, fluctuations in raw material prices, rising sea freight prices, dual control of energy consumption and increased labor costs, the profit space of enterprises has been squeezed, and the profitability has not recovered to the level of the same period before the epidemic, and the overall operation of the industry has been greatly challenged.

　　 2、 The production situation is gradually recovering

In the first three quarters of 2021, the production situation of China's filament weaving industry will gradually recover. According to the statistics of China filament weaving Association, the cumulative output of chemical fiber filament fabrics in Shengze, Changxing, Xiuzhou, Longhu, Siyang, Pingwang, Qidu, Keqiao and Xiaohai of China has reached 23.34 billion meters, up 1.9% year on year.

Under the influence of energy consumption double control and industrial structure adjustment, the output of some cluster chemical fiber filament fabrics declined. In the first three quarters, the cumulative output of chemical fiber filament fabric in Changxing area was 4.8 billion meters, a year-on-year decrease of 11.1% and an average decrease of 2.52% in two years; The cumulative output of chemical fiber filament fabric in Pingwang area was 3.17 billion meters, with a year-on-year decrease of 12.7% and an average decrease of 14.3% in two years.

From January to September, the total output of chemical fiber filament fabric in Shengze area reached 7.47 billion meters, with a year-on-year increase of 11.0% and an average increase of 4.1% in two years. As a traditional chemical fiber filament fabric production base, Shengze, relying on the complete industrial chain, continues to promote the upgrading of industrial structure, introduces digital management system, and gradually eliminates backward production capacity, and its production capacity is stable at the leading level in the industry.

Longhu, Siyang and Qidu chemical fiber filament fabric production also achieved an average positive growth of two years. In August, the State Council issued the National Fitness Program (2021-2025), which triggered a nationwide fitness boom. In addition, the arrival of "La Nina" in 2021, the arrival of winter clothes in advance significantly stimulated the willingness of consumers to buy winter clothes. The rich and colorful products in the market of winter clothes better stimulated the release of market demand. Longhu area mainly produces functional outdoor sports fabrics and winter clothes. Driven by the market demand, the output has increased significantly. Siyang and Qidu are mainly made of home textile fabrics. The market toughness is relatively sufficient, and the output keeps a small growth.

Table 2 output of chemical fiber filament fabrics in major filament weaving industry clusters in China from January to September 2021

Note: the two-year average growth rate is the geometric average calculated based on the first three quarters of 2019.

Data source: Industrial Clusters

According to the association's research, with the abolition of power and production restriction policy, enterprises have gradually resumed normal production. From the current capacity utilization rate of enterprises, 83% of the surveyed enterprises have a capacity utilization rate of more than 80%; 17% of the enterprises' capacity utilization rate is between 50% and 80%. Throughout the year, the output of filament woven fabrics will achieve a small increase.

　　 3、 High price fluctuation of raw materials

Figure 1 shows the price trend of China's chemical fiber filament, cotton, PTA futures and Brent crude oil. Since 2021, affected by international political factors, global inflation, and the new crown epidemic, crude oil prices have been soaring in the first half of the year. After a brief decline in the third quarter, crude oil prices continued to rise rapidly. The biggest increase in the year once exceeded 70%, and the oil price reached the highest level in seven years. In November, a new variant of the new coronavirus Omicron appeared in South Africa. In addition, the release of strategic oil reserves by the United States led to a sharp drop in crude oil prices, but still higher than the same period last year. In December, oil prices rose again. As of December 30, Brent crude oil closed at $78.92/barrel.

Under the influence of crude oil price, the price of China's chemical fiber filament fluctuated from January to October. From November to December, with the weak market of weaving Market, raw materials continued to rise slowly, and the price fell. In the whole year of 2021, affected by the sharp fluctuation of raw material prices, the operating pressure of downstream weaving enterprises will increase significantly.

Figure 1 price trend of chemical fiber filament, cotton and Brent crude oil in China from January 2020 to December 2021

Data source: China silk capital website

Note: the data used in this drawing is up to December 30, 2021.

　　 4、 Stable recovery of domestic market

Since 2021, the national economy has continued to recover and develop, residents' income continues to increase, and consumption capacity has improved. According to the National Bureau of statistics, in the first three quarters, China's GDP reached 82313.1 billion yuan, up 9.8% year-on-year and 5.2% in two years; The per capita disposable income of national residents was 26265 yuan, an actual increase of 9.7% over the same period of last year, and an average increase of 5.1% in two years. According to the data of the National Bureau of statistics, from January to November, China's total retail sales of consumer goods reached 39955.4 billion yuan, up 13.7% year-on-year and 8.2% higher than the same period in 2019. Among them, the sales of clothing, shoes, hats and knitwear above the national quota increased by 14.9% year on year; Among the online retail sales of physical goods, online retail sales of wearing goods increased by 11.1% year-on-year, and the vitality of online consumption continued to release.

Specific to the filament fabric market, judging from the trading data of China Light and Textile City, the grey fabric market performed well in the first half of the year, and the heat of the fabric market decreased in the third quarter. Since October, the market activity has increased significantly, and the trading volume has increased month by month. Among them, the daily turnover of woven polyester decorative cloth such as curtain cloth and window screen shows a steady rising trend. Shading jacquard curtain fabric has long occupied the first place in the best-selling fabric list for a long time and has been widely concerned; In the second half of the year, the market performance of all kinds of color woven fabrics, lining fabrics and luggage accessories was good, and the shipment volume increased steadily. In the fourth quarter, the weather of rain and snow and strong wind and cooling appeared in many places. Down clothing fabrics such as Nisi spinning and gallbladder cloth and jacket fashion leisure fabrics were generally concerned, and the shipment volume was increasing; Since November, spring and summer clothing began to produce and stock up, and the silk imitation fabric market has obviously recovered.

According to the association's research, in 2021, 66% of the enterprises whose domestic sales orders were in line with the same period of last year or increased year on year, and 19% of the enterprises whose orders increased by more than 20% year-on-year, and the domestic demand market recovered steadily. However, it should be noted that 22% of the enterprises' domestic sales orders decreased by more than 10% compared with the same period of the same period, mainly in imitation silk enterprises. From November to April of the next year is the traditional peak season of imitation silk. It is suggested that enterprises should mainly produce differentiated and functional fabrics to avoid homogeneous competition.

　　 5、 Stable operation of foreign trade market

　　 （1） Export growth is good

Since 2021, China's textile and clothing exports have maintained a good growth trend, but affected by the decline in the export of anti epidemic materials such as masks and protective clothing, the textile export volume decreased year on year. According to the data of China Customs, from January to November 2021, the cumulative export of textile and clothing was 285.29 billion US dollars, with a year-on-year increase of 7.7%, and an increase of 15.6% compared with the same period of 2019, of which the textile export was 130.93 billion US dollars, a year-on-year decrease of 7.5%, and an increase of 19.8% over the same period of 2019; Clothing exports reached US $154.35 billion, up 25.1% year-on-year and 12.2% compared with the same period in 2019.

Since 2021, China's chemical fiber filament weaving industry has shown a good anti risk ability in the face of repeated global new crown epidemic, soaring sea freight and rising raw material prices, and the export growth trend is not decreasing. From January to November, the cumulative export value of China's chemical fiber filament fabric was 15.32 billion US dollars, with a year-on-year increase of 36.1% and an increase of 10.3% compared with the same period in 2019; The cumulative export volume was 17.38 billion meters, with a year-on-year increase of 30.9%, and an increase of 11.8% over the same period in 2019. The average price was US $0.9/m, up 3.9% year on year.

Table 3 cumulative export of China's filament fabrics from January to November 2021

　　 Source: China Customs

According to the data of China Customs, from January to November, the total export of polyester filament fabric was 14.96 billion meters, with a year-on-year increase of 30.4% and an increase of 11.1% over the same period in 2019; The total export of nylon filament fabric was 460 million meters, with a year-on-year increase of 23.0%, and a decrease of 13.0% compared with the same period in 2019. The data show that the export quantity of polyester filament fabric is higher than that before the epidemic, and the nylon filament fabric is still in the process of continuous recovery.

On the whole, under the influence of international market demand recovery and overseas order backflow, the cumulative export volume of China's chemical fiber filament fabrics maintained a significant growth in the first half of 2021, and the export growth rate reached the maximum value of 50.1% from January to June 2021. Since the second half of the year, although the export growth rate has slowed down, the foreign trade market demand exists objectively, and the export growth rate remains at a high level. From January to November 2021, China's chemical fiber filament fabric export growth rate will be 30.9%.

Figure 2 cumulative export quantity and growth rate of China's chemical fiber filament fabrics

　　 Source: China Customs

　　 （2） Imports continue to recover

According to the data of China Customs, from January to November 2021, China's chemical fiber filament fabric imports amounted to US $1.02 billion, a year-on-year increase of 17.9%, and a decrease of 18.9% compared with the same period in 2019; The cumulative import volume was 460 million meters, with a year-on-year increase of 2.0%, and a decrease of 33.0% compared with the same period in 2019. The average price was US $2.2/m, up 15.6% year on year.

Compared with January to November in 2020, the import volume and price of China's chemical fiber filament fabric increased, but compared with the same period in 2019, the import volume decreased by 33.0%, but the import unit price increased by 21.1%. This shows that the production capacity of China's medium and high-end filament fabrics can basically meet the domestic demand, and only some cutting-edge products still need to be imported.

Table 4 cumulative import of main filament fabrics in China from January to November 2021

　　 Source: China Customs

　　 6、 Main problems faced by enterprises

When investigating the main problems faced by enterprises in production and operation, the concentration of raw material price fluctuation is more than 80%, which is the primary problem that puzzles enterprises; Secondly, we need to be alert to the rise of electricity charges, the shortage of new orders, power rationing and power outage, and labor shortage; About 30% of the enterprises are facing the problems of poor sales channels and increased inventory; At the same time, some enterprises have reported that there are problems such as traffic and logistics blocked or high price, shortage of funds, cancellation or rejection of orders.

Figure 3 main problems faced by enterprises

　　 Data source: China filament weaving Association

　　 7、 Future prospects

Since 2021, repeated global epidemics, rising prices of raw materials and shipping, and obvious economic inflation have brought risks and challenges to the production and operation of China's filament weaving industry. However, on the whole, China's filament weaving enterprises have shown good risk resistance ability and development toughness. With China's power supply and demand situation returning to normal, production situation returned to normal, sales revenue improved significantly, enterprise efficiency continued to repair, and enterprise operation quality was stable, which laid a good foundation for the development in 2022.

From the domestic market point of view, China has built a well-off society in an all-round way, people's consumption ability has generally improved, and their consumption willingness has also been further enhanced. With the release of "National Fitness Program (2021-2025)", the residents' awareness of fitness has been strengthened, and the "nationwide fitness boom" is in the ascendant; In addition, the arrival of the Beijing Winter Olympic Games will further stimulate the market demand for skiing clothes, winter clothes and outdoor sports clothing, and the domestic market will continue to release. From the perspective of export market, due to the impact of overseas epidemic, the global economic recovery is slow, the uncertainty of foreign trade market is increasing, and the pressure of shipping is still on, and the original market share may be challenged, which needs to be treated with caution; However, with the formal entry into force of RCEP, it is expected to expand the cooperation between China and ten ASEAN countries, which will bring benefits to the export of filament weaving industry.

Looking forward to 2022, the foundation and conditions of China's filament weaving industry will continue to improve. Digital transformation and intelligent development will bring more powerful support to enterprises, and the whole industry is expected to maintain stable growth.

(source: Jia Huiying, China filament weaving Association / contribution)