Since 2017, the global economic recovery has increased tendency. The economic growth of main countries and districts has promoted. The Chinese economy welcomes the successful commencement of the 19^th National Congress in transforming from high-speed growing economy into high-quality development. With the promotion of new era and new dynamic power, the Chinese economy steps into the new development stage and the textile industry has profound situation of continuous development. From January to September last year, the above-designated textile industry throughout the country realized the year-on-year growth of 10.63% in total profit, with economic operation being maintained in the reasonable segment.

In this big environment, the filament weaving industry has stable manufacturing, growing export, reasonable cost control, industrial structure regulation promoted by green manufacturing as well as increase in both economy and efficiency of the whole industry. It is estimated that the overall filament weaving industry will continue to maintain the sound operation condition in the fourth quarter. The detailed analysis is as follows:

Sound manufacturing and operation

l significantly growing income and profit

In the first three quarters, the filament weaving industry in China had sound overall manufacturing and operation conditions, with various economic indexes maintaining continuous growth. According to the statistics of National Statistics Bureau, from January to September, the main business income of the designed size chemical fiber weaving and processing industry in China had a year-on-year growth of 9.82%. The growth rate has increased 6.17% compared with that of the same period in the previous year. The total profit had a year-on-year growth of 19.62%. The growth rate has increased 15.1% compared with that of the same period in the previous year. The profit rate of the chemical fiber manufacturing industry was 5.2%, which has increased 0.42% than the same period of the previous year. The profit rate of the industry has small increase.

Fig. 1  Growth of the main economic indexes in chemical fiber weaving and processing industry in China, October 2016 - September, 2017  (above-designated businesses)

(Data source: National Bureau of Statistics)

According to the investigation of the China Filament Weaving Association, 50% filament weaving enterprises had uplifted average sales price of the main products in the third quarter than the second quarter.

l Declined cost acceleration and shortened inventory cycle

From January to September, the main business cost of the filament weaving industry had a year-on-year growth of 9.58%; the total three expenses had a year-on-year growth of 6.14%. The growth rate has increased 2.22% compared with the same period of the previous year. Thereinto, the sales cost had a year-on-year growth of 9.4%. The enterprise cost was also controlled within the reasonable scope. In addition, from January to September, the asset-liability ratio of the chemical fiber weaving and processing industry in China was 60.01%, with the growth rate being reduced for 0.55% than the same period of the previous year.

Table 1  Summary of the main economic indexes in the chemical fiber weaving and processing industry in China, 1 - 9, 2017 (above-designated businesses)

(Data source: National Bureau of Statistics)

According to the investigation of China Filament Weaving Association, from January to September, although the inventory of weaving industry had slight increase, the growth rate of the inventory was lower than the same period of the previous year obviously. 50% filament weaving enterprises had lower inventory of finished products in the third quarter than the second quarter. Most inventories of the enterprises are products of the present orders, which have the inventory backlog cycle of within one month. Actually, the inventory pressure has indeed been released.

Fig. 2  Inventory of finished products in the chemical fiber filament weaving and processing industry in China, October 2016 - September, 2017  (above-designated businesses)

(Data source: National Bureau of Statistics)

l Declined investment and shrank loss scale

According to the statistics of National Bureau of Statistics, from January to September, the filament weaving industry actually completed the investment amount of 29.83 billion, with a year-on-year growth of 0.14%. The growth rate has decreased 27.87% than the same period of the previous year. The filament fabric dyeing and printing industry completed a practical investment amount of 3.735 billion, with a year-on-year declining of 32.8%. The decreasing amplitude has enhanced for 18.31% compared with the same period of the previous year. The great amplitude in the decreasing investment in dyeing and printing industry is mainly because the threshold of investing in dyeing and printing upgraded in the background of the vigorous promotion of environmental policy in China. As a result, the investment difficult further intensified.

Since July, the further upgrading of environmental protection strength compels some non-standard weaving enterprises to shut down successively. It has realized the selection of the superior and elimination of the inferior in the weaving market, thus further shrinking the loss scale of the industry. In September, the loss scale of the filament weaving industry in China has shrunk into 11.25%. The accumulated loss amount of the unprofitable enterprises had a year-on-year declining of 18.52%. The loss scale of the filament fabric dyeing and printing industry reached 16.28%, with an expansion of 0.67% compared with the same period of the previous year.

Steady but increased export growth

l Growth of the filament fabric export

Since the beginning of last year, the global trade environment has been affected by the political factors greatly. The international business protectionism rises and the growth speed of the textile export in China slows down. However, the export of filament fabrics still maintain the increase. According to the statistics of China Customs, from January to September, the accumulated export of the textile fabrics in China reached 22.028 billion meters, with a year-on-year growth of 3.36%. The growth speed has declined 2.67% than the same period of the previous year. Thereinto, the chemical fiber filament fabrics had an accumulated export of 10.402 billion meters, with a year-on-year growth of 10.42%. The growth speed has increased 0.65% than the same period of the previous year. The export contribution rate reached 136.92%. The export of the chemical fiber filament fabrics occupied 47.22% of the total textile fabrics export in China.

Observing from the export product categories in the filament weaving industry, from January to September, polyamide filament fabrics had an accumulated export of 325 million meters, with a year-on-year growth of 12.36%; polyester filament fabrics had an accumulated export of 8.979 billion meters, with a year-on-year growth of 10.17%

Fig. 3  Export of the chemical fiber filament fabrics in China, October 2016 - September, 2017

(Data source: China Customs)

l Declined export price

According to the statistics of China Customs, the average price of the chemical fiber filament fabrics in China from January to September was USD0.87/meter, with a year-on-year declining of 4.4%, in which, the export price of the polyester filament fabrics was USD 0.85/meter, with a year-on-year declining of 5.56%.

Table 2  Accumulated Export of Filament Fabrics in China from January to September in 2017

(Data source: China Customs)

From January to September, 2017, the average export price of the filament fabrics was RMB 5.77/meter, which was slightly lower than the domestic market price. Although the export price was lower, enterprises were willing to choose the foreign markets because the foreign customers had short payment cycle, so that the enterprises would have faster fund flow.

l Relatively stable main international business districts  

In the first three quarters, the main business districts of the chemical fiber filaments in China are relatively stable. Both the Southeast Asia and Africa districts had growth. From table 3, it is visible that our export volume to EU increased but the price declined. The accumulated export volume was 1.015 billion meters, with a year-on-year growth of 9.16%. However, the export price was USD0.93/meter, with a year-on-year declining of 7.54%. The export to Pakistan had declining in both quantity and price. The export volume had a year-on-year declining of 5.49% while the export price had a year-on-year reduction of 24.05%.

As the gradual promotion of China’s The Belt and Road Initiative, the economic trade and cooperation between Asia and Africa increases. From January to September, China’s export to Nigeria had both dramatic increase in both volume and value, in which, the export volume had a year-on-year growth of 101.72%; the export amount had a year-on-year growth of 87.8%; the price had a year-on-year declining of 6.9%. This district had a great market demand to the filament fabrics in China. The import on a large scale in the district has been promoted.

According to customs statistics, from January to September, the direct business of China’s chemical fiber filament fabrics to the United States had both increase in volume and value. The export price reduced USD0.86/meter, with a year-on-year declining of 7.655.

Table 3 Export of the Main Trade Districts for the Chemical Fiber Filament Fabrics in China from January to September in 2017

(Data source: China Customs)

l Positive growth in import

In the first three quarters, the import amount of the textile fabrics in China declined but the price rose, in which, the import of filament fabrics had positive growth. According to the statistics of China Customs Data, from January to September, the accumulated import quantity of the filament fabrics in China was 628 million meters, with a year-on-year growth of 1.23%. The polyamide filament fabrics had an accumulated import quantity of 241 million meters, with a year-on-year growth of 0.9%. The polyester filament fabrics had an accumulated import quantity of 241 million meters, with a year-on-year growth of 0.9%.

The average import price of filament fabrics was USD1.72/meter, with a year-on-year declining of 1.15%. The import and export price difference of the filament fabrics expanded from 0.83 USD/meter of the last year to 0.85 USD/meter. Although the filament fabrics had a declining price in China, the filament fabrics still had a certain difference with the imported products.

Table 4  Accumulated import of Filament Fabrics in China from January to September in 2017

(Data source: China Customs)

Sound domestic sales market  

l Price fluctuation of the raw materials

In the first three quarters, the price of the domestic chemical fiber raw materials was rather fluctuated. From January to May, the price declined. After June, the price rose gradually. From Fig. 4, it is visible that the price of polyamide FDY declined in the first half year of 2017 and reached the bottom in May. After May, the prices of polyester FDY and polyester DTY increased gradually. The price of cotton maintained basically stable.

Fig. 4 The chemical fiber filament and cotton price tendency from October, 2016 to September, 2017

Data source: 168. Tex. Com

l Great demand of the domestic market 

Since 2017, the sales of chemical fiber filament simulation products has increased dramatically. The imitated silk fabrics and casement fabrics had demand exceeding supply. The market has a large demand. The demand of the domestic market still exists and the high-end products in good quality has a great sales volume. According to the investigation date of China Filament Weaving Association, 37.5% of the enterprises in the filament weaving industry had increased order quantity in the third quarter than the second quarter; 50% of the enterprises had unchanged order quantity as the second quarter; 62.5% of the enterprises believed that the order quantity of the forth order quantity would increase.

The turnover of Shengze district is taken as an example. The entire market condition is better than the same period of the previous year. Shengzhe market entered into sales peak period since April. Until July, the sales index kept on growing. It fell back in August and continued to rise in September.

l slight increase of the fabric price

In the first three quarters, the domestic market demand increased and the price of the chemical fiber filament fabrics had slight growth. As to the detailed fabrics, the silk-like fabrics made from chemical fiber filament had brick sales. After going through the period of slack sales from June to August, the fabrics price had stable rise since September. The enterprises generally reflects that the market has great demand to the intimated silk fabrics. The fabrics price is expected to continue to grow.

Expectation and outlook  

In 2017, China economy presented the development characteristics of “new circumstance, new dynamic power, new environment, new vitality and new revolution”. In the first three quarters, the national economy maintained the middle and high speed growth as well as the tendency of stepping to middle and high level. The commencement of the 19^th National Congress brought new dynamic force to the new development of national economy. In the future, the economic structure will continue to be optimized; the sustainability of economic development will be enhanced; economic development will enter into the high-quality development stage.

At the same time, the global economy is also full of dynamic force. The Asian economic circle is established gradually. As the biggest economic entity, China put forward “B&R”, Asia-Europe Cooperation and several other policies to promote international exchange and business cooperation. In particularly, the continuous deepening of China-US relationship not only brings more market opportunities to China, but also guides the super-scale entity economy to the international leading level. The textile industry in China is still the important pillar industry of national economy. Its future development requires the support of stronger back force.

Compared with the previous year, the economy of the filament weaving industry in China realized great improvement in 2017. It not only presents the sound development with both quality and efficiency growth, but also promotes the upgrading of industrial structure. It is expected that the filament weaving industry will continue to maintain the steady growth in the fourth quarter. The association will put endeavors with the enterprises together to keep on promoting the high-efficient and high-quality development of the economy in the whole industry in the fields of product research, technical innovation, transformation and upgrading, industrial transferring, brand development and so on.