January-November 2017 Economic operation and prospects of the textile industry


January 22, China Textile Industry Federation 2017 work summary meeting, released January 2017 industry economic operation analysis and 2018 outlook.

From January to November 2017, the high-quality development of China's textile industry is reflected in the growth benefits, high capacity utilization, rising consumer spending and the conversion of old and new kinetic energy.

The economic operation of the industry showed the following main features: First, steady growth; second, steady growth in domestic demand; third, pick-up in external markets; fourth, positive investment in the east; and steady improvement in quality and efficiency.

1, a steady growth rate

After entering 2017, the growth rate of value added of China's textile industry will gradually stabilize, reaching 4.8% for the full year of 2017. The basic development of China's textile industry transition from the shift to a smooth period.

2, steady growth of domestic demand

The total retail sales of consumer goods increased, with retail sales accounting for 4.0% of the total retail sales of social goods. The scale is growing, but the growth rate is not fast.

3, external demand market pick up

From January to November 2017, the EU, the United States and Japan in the traditional export markets both reversed negative growth for the previous year.

China exported 83.435 billion U.S. dollars of textile and clothing to Belt and Road, an increase of 3.11% over the same period of previous year, reversing the negative growth for two years. The growth of the export of textile and clothing along the Belt and Road is higher than the growth of the export of the industry, accounting for more than one-third of the export of textile and garment products along the Belt and Road.

4, active investment in the east

From January to November 2017, the investment in fixed assets of China's textile industry was 1230.93 billion yuan, an increase of 6.29% over the same period of last year.

In terms of the regional structure, investment in the eastern region grew 8.7%, up 4.5% over the previous year and accounted for 80.1% of the national investment increment. Due to less new production capacity in the east, its high growth rate indicates that enterprises are actively involved in restructuring and upgrading high.

5, the quality of a smooth upgrade

From January to November 2017, the profit margin of China's textile industry was 5.26%, representing an increase of 0.13% as compared with the same period of last year, resulting in an increase in profitability. In terms of cost control, it has been slightly improved and de-leveraged to some extent. Profit margins of chemical fiber, filament yarn and textile machinery increased significantly. Profit growth of cotton, hemp and industrial sectors declined. Profit increase of chemical fiber industry accounted for 50.7% of total industry profit increase. The pressure on the overall management of the industry increased slightly over the same period of last year.

Looking to 2018, global trade growth will slow slightly. As the global economy continues to recover, the consumption information will be improved. The overall consumer demand will grow steadily. In the economic recovery cycle, the growth rate of clothing consumption is generally lower than that of durable goods and services.

On the domestic front, domestic consumption grew steadily and the growth rate was basically the same as in 2017. The national economy continued its steady growth and provided a good economic environment for domestic consumption. Consumption intentions increased and consumer finance developed rapidly, providing positive support for the expansion of domestic demand. The characteristics of domestic demand upgrading were remarkable. Consumers' demand for quality, culture and environmental protection increased. Experiencing the rapid development of consumption, sharing economy and so on, both raised new challenges for the textile industry to optimize the supply side structure.

In 2018, the cotton price is expected to be relatively stable. International cotton market supply and demand more relaxed pattern of the lack of substantial price increases; domestic cotton spreads with the international market is expected to control a reasonable range.

As the international crude oil supply gradually ease over-supply, the international crude oil prices will rise. This will push up the cost of chemical fiber raw materials but will also provide upward support to the market price of downstream chemical fiber products. The chemical fiber industry is expected to continue its rapid growth since 2017.