From January to February 2021, the export of textile and apparel products will be “exploded”!
Exports of some labor-intensive products that were severely affected by the epidemic last year are also picking up rapidly this year. From January to February, the overall export of labor-intensive products increased by 49.2% year-on-year.
Among them, clothing was 156.92 billion yuan, an increase of 40%; textiles including masks were 144.44 billion yuan, an increase of 50.2%; plastic products were 91.15 billion yuan, an increase of 70.5%.
In 2020, China’s textile and apparel exports were 296.23 billion U.S. dollars, second only to the historical peak of 298.49 billion U.S. dollars in 2014, an increase of 9.1% year-on-year. Of course, the main pulling force is masks.
The huge increase in the export of masks led to the rapid growth of 28.9% in textile exports throughout the year. The proportion of textiles in the overall textile and apparel exports rapidly expanded to 52.3%, surpassing clothing (47.7%) for the first time.
Apparel companies have experienced difficulties such as buyers canceling, reducing orders, or requesting delayed shipments. From January to April 2020, my country’s clothing exports to the United States fell by 35.2% year-on-year, becoming one of the markets where China’s exports fell the most; exports to the EU fell by 16.8%; in addition, the markets where exports fell more severely include Russia, Hong Kong, and China. In Latin America, the decline was 36.8%, 40.2%, and 29.6%, respectively.
Knitted and woven garments, the most important product in apparel, the total exports in 2020 accounted for more decline than in 2019, a difference of 7.6 percentage points. And ASEAN has become the only region where China’s clothing exports have grown.
They finally managed to recover in the third quarter.
The main reason for the increase in orders is that China’s excellent epidemic control has made the supply chain more stable than other countries that undertake labor-intensive industries. Therefore, for the apparel and textile industry, 2020 has staged “lost orders back.”.
Entering 2021, Chinese textile export companies have received soft orders, and many factories’ orders are scheduled for April and May, and even turn around 24 hours a day. However, it is worth noting that in the January-February export data, the role of textile yarn and other anti-epidemic-related products in pulling exports has continued to weaken. On the other hand, the sharp increase in the price of textile raw materials has also eroded the profits of companies, making orders with tears, and even dare not accept orders.
In addition, the epidemic is a sudden and accidental event, which will have a stress effect on the trend of global trade in the short term, and quickly concentrate orders to a small number of countries and regions that have a complete industrial chain and restore production capacity in the first time. However, the epidemic will eventually pass. Whether the returned orders will be lost at this time is worthy of early preparation by textile companies.
spring is coming?
According to data from the General Administration of Customs, from January to February, my country’s main export markets were the United States (17.2% of exports), the European Union (15.7%), and ASEAN (14.4%).
From January to February, my country’s exports to major global markets rebounded: exports to ASEAN increased by 43.2%; exports to the EU increased by 51.9%; exports to the United States increased by as much as 75.1%; exports to Japan also increased by 38.2%.
As the epidemic improved, in December last year, industrial production in Germany, France, Japan, and the United Kingdom accelerated repairs, and German industrial production exceeded that before the outbreak of the epidemic year-on-year. In January and February 2021, JPMorgan Chase’s global manufacturing PMI was 53.6 and 53.9, respectively. Among them, the PMI data in February is a new high since the epidemic.
Port data reflects the same trend. In February, the container throughput of my country’s eight major ports increased by 37% year-on-year, which was an increase of 9.9% from February 2019, of which foreign trade containers increased by 37.9% year-on-year.
In the spring of 2021, it will be warm and cold, but perhaps it has come quietly.