Analysis of Economic Operation of Filament Weaving Industry in the First Half of 2011 (I)

In the first half of 2011, China's filament yarn weaving industry showed a steady development trend, with smooth production and sales, good export growth, and stable market operations.

1. Steady development of major industrial clusters According to the data provided by major gathering places of China's filament weaving industry, in the first half of this year, China's filament weaving industry maintained a steady development trend, with smooth production and sales, stable profit growth, and better actual investment. . Details are as follows:

(1) The economic performance is good:

As can be seen from the following table, the growth rate of the total industrial output value of the localities is around 20%, and the sales growth rate of the sales is also above 30%. However, it should be noted that the growth of output value is mainly concentrated in the first quarter. Take Shengze Town as an example. In the first quarter of this year, its industrial output value showed a substantial growth trend. Since April, it has significantly declined, and it has fallen by 7% from the previous quarter. It is expected that China's filament yarn weaving industry will maintain steady development this year, and the growth rate of output value may further slow down in the second half of the year.



(2) Stable profit growth:

In the first half of this year, the textile industry in Shengze Town of Wujiang City achieved an industrial added value of 7.111 billion yuan (including spinning and weaving finishing ratio of 6:4), a year-on-year increase of 19.55%; and Xiuzhou District of Jiaxing City realized a total profit of 460 million yuan. Yuan, a year-on-year increase of 39.48%. Huzhou Changxing County's January-May filament yarn weaving industry realized a total profit of 379 million yuan, an increase of 31.5% year-on-year.

Although the overall economic performance of the industry is good, some small and medium enterprises still face difficulties. For example, in Wujiang City, there were 482 enterprises in statistical losses from January to May this year, and the number of loss-making enterprises increased by 152% year-on-year, of which 80% were small and medium-sized textile enterprises. The total loss of the company was 140 million yuan, a year-on-year increase of 105%.

(3) Better investment growth:

In the first half of this year, the filament yarn weaving industry in the three major cluster areas actually completed a good investment in fixed assets, mainly used to eliminate backward production capacity, and introduced internationally advanced intelligent equipment and environmental protection equipment such as wide-width, leading, and multi-jets. Taking Shengze Town as an example, 255 sets of backward printing and dyeing equipment were eliminated from January to May this year; from September last year to April of this year, 27,000 sets of water jet looms were newly added; the total investment in industrial technological transformation of the town was 2.799 billion yuan. The year-on-year increase of 34.64%. From January to June this year, Shengze Town actually invested 5.369 billion yuan, an increase of 49.06% year-on-year; Changxing County actually completed an investment of 1.413 billion yuan, accounting for 24.81% of the county's completed investment.

At present, the investment in fixed assets in the upstream industries is also growing at a faster rate, which is mainly used for new production capacity. For example, the new capacity of the chemical fiber industry in Jiangsu and Zhejiang has reached 60% this year. The expansion of production capacity has boosted output growth. Take the Wujiang region as an example, output from January to May this year increased by 48.9% year-on-year, new polyester chip production capacity was 148,000 tons, and new synthetic fiber capacity was 973,000 tons. The rapid expansion of production capacity has alleviated the pressure on raw material supply, but also brought opportunities for the development of downstream industries. The major cluster regions have realized the importance of guiding the development of the filament weaving industry.

Affected by the environmental protection policies, local companies have paid more attention to energy conservation and environmental protection. Take Shengze as an example. Since the beginning of this year, seven new companies have signed energy audit contracts and 13 companies have signed clean production contracts. At the same time, it actively carried out the rectification of water jet looms to ensure that the total amount of pollutants discharged and the quality of pollutants discharged were controlled.

Overall, due to the obvious constraints on the current environmental resources, it is expected that the future investment potential of enterprises will be weakened and the direction of investment will be lost.

2. Exports keep growing (1) Export share rises sharply
From January to June 2011, China exported 10.912 billion meters of woven fabrics, an increase of 8.22% year-on-year. Among them, the ratio of filament fabrics is 41.28%, the export contribution rate is 107.12%, and it ranks first in the export of woven fabrics. In other words, in the first half of this year, export of filament fabrics maintained a good growth trend in the zero growth of cotton fabrics and staple fiber fabrics. This is mainly due to the abnormal volatility in cotton prices since the second half of last year, leading to a significant increase in the export prices of staple fiber products, which is an increase of about 40% year-on-year. In contrast, the export price of long-staple fabrics is relatively stable, only slightly increasing by 14.29%. The relative stability of prices ensures the relative stability of market trade.

(2) Steady growth in export volume

From January to June 2011, the cumulative export value of China's filament fabrics totaled US$4.333 billion, a year-on-year increase of 42.78%. The number of exports was 4.505 billion meters, a year-on-year increase of 24.57%. Among them, the total exports of polyester filament fabrics were 3.98 billion meters, an increase of 26.06% year-on-year, and the export contribution rate was 92.67%. The cumulative export of nylon filament fabrics was 095 million meters, an increase of 7.88% year-on-year; the cumulative exports of filament fabrics were 444 million meters. The year-on-year increase was 41.94%.

The following figure shows the export situation of China's filament fabric from January to June 2011. As can be seen from the figure, the export volume of China's filament fabrics has been rising month by month since February, and the year-on-year growth rate has also gradually increased.



Export products are mainly exported to UAE, Brazil, Indonesia, Vietnam, Russia, Mexico, India and other places. Compared with the same period of last year, except for no significant changes in the volume of exports to Brazil, the volume of exports to other countries increased by more than 40% year-on-year. In particular, Indonesia’s export volume increased by 70.88% year-on-year to 230 million meters, ranking third among China’s exporters of filament fabrics.

(3) Decrease in imports

From January to June 2011, China's total length of silk fabrics imported 637 million meters, a year-on-year decrease of 5.59%. Among them, nylon filament fabrics increased by 47.62% year-on-year due to price increase, and the import volume was only 145 million meters, which was a year-on-year decrease of 26.07%.

From the point of view of imports, from January to June this year, China's imports of long-filament fabrics from Taiwan decreased by 7.82% year-on-year, and filament fabrics imported from South Korea increased by 8.69% year-on-year.

3. Domestic market stability In the first half of this year, domestic demand was still a strong driving force for the development of the filament weaving industry. Compared with the same period of last year, the domestic sales situation of the chemical filament filament weaving industry was relatively stable, and enterprises had certain confidence in the latter-stage market. It is understood that most enterprises' orders can meet the production demand in the second half of the year. The following uses China Shengze silk chemical fiber index for analysis.

(1) Comprehensive price index of chemical fiber fabrics : The following figure shows the comparison of synthetic index of synthetic fabrics in the first half of 2011 and the first half of 2010.



It can be seen that compared with the ups and downs of the index last year, the composite index of chemical fiber fabrics in the first half of this year showed slight fluctuations and steadily climbed. Although the overall price level did not exceed that of the same period of last year as of mid-June, due to the good upward trend of the market, the price trend is expected to remain relatively stable in the coming months.

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