Recently, various localities have successively announced the overall development and operation of the textile industry since the first half of the year. The pandemic has generally affected the development of the industry to varying degrees. As a major textile industry province, how has Henan Province performed this year?

The overall slowdown in growth and benefits

Statistics show that from January to July this year, textile enterprises above designated size in Henan produced 1.5439 million tons of yarn, 726 million meters of cloth, and 364,000 tons of chemical fiber, down 6.19%, 4.85% and 19% respectively year-on-year; completing main business income 172.9 billion yuan and realized profits of 7.93 billion yuan, down 15% and 20.3% year-on-year respectively; textile and apparel exports were USD 1.11 billion, up 9.5% year-on-year. The increase in exports of anti-pandemic materials has stimulated the growth of textile exports.

 

In the cotton spinning industry, most enterprises in the Henan cotton textile industry are currently producing normally. At this stage, the capacity utilization rate is above 70%, and the average yarn count of the enterprise yarn production is above 40. Fabrics are produced by sales, and differentiated products dominate. In the chemical fiber industry, viscose and spandex fiber markets are difficult to expand; the polyester market is steadily declining, viscose staple fiber fluctuates slightly, prices and sales are relatively stable, and corporate profits have declined. Since the beginning of this year, the international crude oil market has fluctuated sharply, and the prices of downstream raw materials have also fallen sharply. The outbreak of the pandemic has brought about a significant increase in orders for nonwoven equipment in the textile machinery manufacturing industry. Pure cotton spinning enterprises have a strong desire to transform and upgrade, and cotton textile equipment is upgraded and demand is increasing.

 

Overall, the turbulence of the pandemic has exacerbated the polarization of enterprises. Some companies produce according to orders and take regular holidays. Some enterprises are operating normally. The chemical fiber enterprises are under pressure. Orders for equipment related to the manufacture of anti-pandemic materials for textile equipment have a blowout growth, and the market demand for other types of machinery has shrunk severely. Some small and medium-sized enterprises have cut production and stopped production, encountering unprecedented difficulties.

 

According to the analysis of industry veterans, the current problems facing Henan textile industry are mainly reflected in the following aspects: first, raw material prices fluctuate and enterprises are short of orders; second, the pressure on various costs of production and operation is increasing, and overseas investment is increasing; third, financing costs remain high, the industry profit is diluted.

 

Although today’s enterprises are facing unprecedented difficulties, China’s economic development continues to improve, and the country and Henan Province have also introduced a series of policies and measures to support enterprises.