The prosperity of my country's industrial textiles industry will rebound significantly in the first half of 2024
Release time:
2024-08-16
In the first half of 2024, the complexity, severity and uncertainty of the external environment increased significantly, and the domestic structural adjustment continued to deepen, bringing new challenges. However, the effects of macroeconomic policies continued to be released, external demand rebounded, and new quality productivity accelerated. The market demand of my country's industrial textile industry has generally rebounded. The impact of the sharp fluctuations in demand caused by the COVID-19 epidemic has basically subsided. The growth rate of industrial added value has returned to the upward channel since the beginning of 2023, but the uncertainty of demand in some application areas and various potential risks affect the current development of the industry and expectations for the future.
In the first half of 2024, the complexity, severity and uncertainty of the external environment increased significantly, and the domestic structural adjustment continued to deepen, bringing new challenges. However, the effects of macroeconomic policies continued to be released, external demand rebounded, and new quality productivity accelerated. The market demand of my country's industrial textile industry has generally rebounded. The impact of the sharp fluctuations in demand caused by the COVID-19 epidemic has basically subsided. The growth rate of industrial added value has returned to the upward channel since the beginning of 2023, but the uncertainty of demand in some application areas and various potential risks affect the current development of the industry and expectations for the future.
Market Demand and Production
According to the association's survey of member companies, the market demand of the industrial textile industry recovered significantly in the first half of 2024, and the domestic and foreign order indexes reached 57.5 and 69.4 respectively, which was a significant rebound compared with the same period in 2023 (37.8 and 46.1) (Figure 2). In terms of different fields, the domestic demand market for medical and sanitary textiles, special textiles, and thread and tape products continued to recover, and there were obvious signs of recovery in the international market demand for filtration and separation textiles, nonwovens, and medical and sanitary textiles.
The recovery of market demand has driven steady growth in industry production. According to the association's survey, the capacity utilization rate of industrial textile enterprises in the first half of 2024 was about 75%, among which the capacity utilization rate of spunbond and spunlace nonwoven enterprises was about 70%, both better than the same period in 2023. According to the data of the National Bureau of Statistics, the output of nonwoven fabrics of enterprises above designated size increased by 11.4% year-on-year from January to June 2024; the output of cord fabrics increased by 4.6% year-on-year, but the growth rate slowed down (Figure 3).
Economic benefits
Affected by the high base brought by epidemic prevention materials, the operating income and total profit of my country's industrial textile industry have been in a declining range from 2022 to 2023. In the first half of 2024, due to demand promotion and the fading of epidemic factors, the industry's operating income and total profit increased by 6.4% and 24.7% year-on-year respectively, re-entering the growth channel. According to the data of the National Bureau of Statistics, the industry's operating profit margin was 3.9% in the first half of 2024, an increase of 0.6 percentage points year-on-year, and the profitability of enterprises has improved, but there is still a large gap compared with the pre-epidemic period. According to the association's survey, the order situation of enterprises in the first half of 2024 is generally better than that in 2023, but due to fierce competition in the mid- and low-end markets, there is great downward pressure on product prices; some companies focusing on niche markets and high-end markets said that functional and differentiated products can still maintain a certain profitability. In terms of different fields, from January to June, the operating income and total profit of non-woven fabric enterprises above designated size increased by 4% and 19.5% year-on-year respectively due to the low base effect, but the operating profit margin was only 2.5%. Spunbond and spunlace non-woven fabric companies generally reflected that the price of general products has dropped to the edge of the break-even point; the rope, cable and cable industry showed significant signs of recovery, with the operating income and total profit of enterprises above designated size increasing by 14.8% and 90.2% year-on-year respectively, and the operating profit margin was 3.5%, an increase of 1.4 percentage points year-on-year; the operating income and total profit of textile belts and cord fabric enterprises above designated size increased by 14.8% and 90.2% year-on-year respectively, and the operating profit margin was 3.5%, an increase of 1.4 percentage points year-on-year; the operating income and total profit of textile belts and cord fabric enterprises above designated size increased by 14.8% and 90.2% year-on-year respectively. The operating income of enterprises above designated size in the textile industry increased by 8.7% and 21.6% year-on-year, and the operating profit margin was 2.8%, an increase of 0.3 percentage points year-on-year; the operating income of enterprises above designated size in the textile industry ... In the first half of 2024, the key products of my country's industrial textile industry (Chapters 56 and 59) maintained a high growth rate in exports to major markets. For example, exports to Vietnam and the United States increased by 24.4% and 11.8% respectively, and exports to Cambodia increased by nearly 35%; but exports to India and Russia both fell by more than 10%. Developing countries are increasing their share in my country's industrial textile export market. From the perspective of major export products, the export value of key export products such as industrial coated fabrics, felt/tents, non-woven fabrics, diapers and sanitary napkins, cords and cables, canvas, and industrial fiberglass products maintained a certain growth in the first half of 2024; the export value of wet wipes, structural reinforcement textiles, and other industrial textiles maintained a high growth rate; the overseas demand for disposable sanitary products such as diapers and sanitary napkins shrank. Although the export value continued to grow, the growth rate was 20 percentage points lower than the same period in 2023. From the perspective of export prices, except for the price increase of industrial coated fabrics, airbags, filtration and separation textiles and other industrial textiles, the prices of other products have declined to varying degrees.
Full-year development forecast
At present, my country's industrial textile industry is gradually emerging from the downward period after the COVID-19 epidemic, and major economic indicators have entered the growth channel. However, due to the structural contradiction between supply and demand, price has become the most direct means of competition. The prices of the industry's main products in the domestic and foreign markets continue to decline, and the decline in corporate profitability is the main challenge facing the industry. Key enterprises in the industry should actively respond. On the one hand, they should accelerate the renewal of old equipment and energy-saving transformation to reduce operating costs; on the other hand, they should effectively formulate market strategies, avoid low-price competition, concentrate superior resources to create competitive products, and improve profitability. In the long run, the competitive advantages and markets of my country's industrial textile industry still exist, and enterprises remain confident in the future. Green, differentiated and high-end development has become an industry consensus. Looking forward to the whole year, with the continuous accumulation of positive factors and favorable conditions in my country's economic operation and the steady recovery of international trade growth, it is expected that my country's industrial textile industry will maintain the stable growth in the first half of the year, and the profitability of the industry is expected to continue to improve.
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