Pain intensified, the industry accelerated shuffling, textile industry in 2019 where to go!

Thousands of troops crossed the single wooden bridge, summarizing the word 2018: difficult.



Outside, there are rising international raw materials, the impact of the rapid rise of textile industry in Southeast Asia and uncertain factors of trade friction between China and the United States. There are double pressures of transformation and upgrading and environmental protection policies. The overall pessimism of the textile industry spreads. Many textile enterprises are physically and mentally exhausted. The traditional textile industry with a capacity of 3.8 trillion yuan has now come to the fore.



At present, the textile industry is facing severe challenges, such as financing difficulties, recruitment difficulties, vicious competition, market disorder, heavy burden on enterprises, low profitability and so on. The textile industry is facing severe challenges, market shuffling is accelerating, overcapacity textile industry transformation and upgrading, the pain is obvious.



Looking back on 2018, the cold swept across the industry, domestic and foreign troubles, textile industry in 2019 where to go!



1. Normalization of environmental protection policy and acceleration of industry shuffling



Since the outbreak of environmental protection policies in 2017, all kinds of environmental protection policies and regulations came to the ground intensively in 2018, the high pressure of environmental protection continued in 2019, all kinds of environmental protection policies and rules were implemented one after another, a new round of central environmental protection supervision was launched in an all-round way, and the normalization of environmental protection has become an inevitable trend.



On January 1, 2019, China's first law on the prevention and control of soil pollution, the Law of the People's Republic of China on the Prevention and Control of Soil Pollution, was formally implemented.



On the same day, known as “ the most stringent in history ”, many “ striking ” regulations on the prevention and control of air pollution in Shanxi Province (Amendment) began to be implemented.



With the sustained efforts of environmental protection policy, 183 printing and dyeing enterprises along the Yangtze River in Shantou have closed down and stopped production in 2019. The impact of the printing and dyeing Market is greater. Prices of printing and dyeing cost materials have risen accordingly. For example, the price of dispersed black ECT 300% has risen by 42 yuan/kg, an increase of 2000 yuan/ton, and other conventional dyestuffs have also risen accordingly.

It should be pointed out that under the pressure of environmental protection policy, & ldquo; scattered Pollution & rdquo; the elimination of enterprises is remarkable, which purifies the market industry, promotes the orderly development of the industry, promotes the sustainable development of the industry, and helps the textile industry to rebuild itself, but the pain is inevitable.



2. The international crude oil market is turbulent and PTA is rising < br />.


The international environment is complex, the situation in the Middle East is changing, the U.S. withdrawal, the Palestinian-Israeli conflict and other issues, as well as the OPEC, Saudi Arabia and Russia's major crude oil exporters agreement to reduce production ambiguities, crude oil prices continue to fall, but the recent rebound is obvious. After January 1, 2019, international oil prices have witnessed seven consecutive increases, PTA prices are also rising. Its internal market quotation rose to about 6420-6500 yuan/ton, while the turnover negotiations rose to around 6270-6350 yuan/ton.



Although the price of crude oil can not completely determine the PTA market, there is a certain linkage between the two.



3. Sino-US trade friction truce, the future trend is not clear < br />.


In December 2018, China and the United States announced a consensus to stop imposing new tariffs on each other, but did not rule out the possibility that the United States would still impose new tariffs. After all, Trump's government is likely to repeat what they have repeatedly shown - ldquo; the spirit of abandonment - rdquo;.



Secondly, the supply of textile raw materials caused by Sino-US trade frictions.



The United States is the world's largest exporter of cotton, but also China's largest importer of cotton.



All along, China's cotton market is in a state of short supply and demand, requiring imports of a certain amount of cotton to meet the demand gap. From January to December 2017, China imported 1.153 million tons of cotton, of which US cotton imports amounted to 506.3 million tons, or 44% of the total imports.



However, it should be pointed out that in 2017, China's total cotton supply (including end-of-term inventory) was 124.54 million tons, the total demand was 7.115 million tons, and the import of cotton was 1.153 million tons, while the import of American cotton accounted for only 7.1% of China's demand and 4.1% of the total supply.



According to the US Department of Agriculture data, China signed a total of 1.5 million bales of American cotton imports in 2018, which still shows that the United States occupies an important position in China's cotton import market.



However, the shadow of Sino-US trade war already exists. For some textile enterprises which depend heavily on imported cotton, it is inevitable to take precautions and choose multi-channel supply.



FourSoutheast Asia Textile Industry Rises and Industry Transfer



In recent years, the textile and apparel industry in Southeast Asia, especially in Vietnam and Bangladesh, has shown the strongest momentum. Thanks to the continuous improvement of the industrial chain and the advantage of labor cost with wage level only half of China's, Vietnamese textile export enterprises have begun to be favored by more and more European and American businessmen, and some orders from European and American markets have shifted to Southeast Asia.



With the mature textile technology in China, relying on the relatively low labor costs in Southeast Asia and preferential tariff treatment in Southeast Asia, such as Bangladesh textiles sold to Japan, Canada and Australia can enjoy zero tariff treatment, including China. That's why, under the pressure of overcapacity and domestic environmental protection policies, some textile enterprises have turned to Southeast Asia.



But at the same time, there are many problems in Southeast Asian countries, such as low culture of local workers, scattered discipline, low efficiency, high cost of technical training, excessive wage increase, poor business environment of the government, the level of industry openness and so on. For textile enterprises, the transfer cost in Southeast Asia is also a heavy burden, as well as the security situation in Southeast Asia.



Generally speaking, in 2019, the situation of textile industry is more severe and the problems are more complex. We hope that textile workers can do and cherish it.