In the second half of 2016, is the textile industry good or bad?

The G20 around the special market has ended, the textile market in the second half of the negative and positive coexist. Due to the joint squeeze of upstream and downstream, as well as the recession of the export market, the textile industry, which has been in an awkward position in the first half of the year, will have a bumper harvest in the second half of the year? Or continue the "sandwich" embarrassment?

Export pressures have increased but remain supportive

China's total textile exports have shown negative growth so far, falling 2.3 per cent year on year in the first five months of this year, but the decline has been less severe than last year and since the beginning of this year. The industry expects pressure on China's textile exports to increase in the second half of this year, but it still has momentum.

Industry analysts believe that since this year, the world economic recovery is slow, the external demand rebound is still insufficient, the export prospects of China's textile industry also has many uncertainties. Since the second quarter of this year, influenced by the depreciation of the RMB and other factors, China's textile exports in the second half of the year will be expected to benefit from it.

In addition, it should be noted that in recent years, the overall economy of the EU is sluggish, and the export of Chinese textiles and garments to the EU is declining obviously. In the first five months of this year, the export of Chinese textiles and garments to the EU dropped by nearly 4% year on year. In recent years, due to the dynamic economic and trade relations between China and the UK, the proportion of Chinese textile and garment exports to the UK has increased. The UK is the largest market for Chinese textile and garment in the EU, and it is also a relatively stable market. In the first five months of this year, China's exports of textiles and garments to the EU declined overall, but to the UK still maintained a growth rate of about 3%. However, after the Brexit vote, market instability has increased, which may affect Chinese textile and garment exports to the UK and the EU.

Dyeing factories in some areas have rallied to raise prices

Dye due to restricted by domestic environmental protection, soaring prices doubled, the soaring, the government limits, must satisfy, therefore must invest heavily again construction of dyeing and finishing industry wastewater pretreatment and water reuse in multistage treatment facilities, making the operation of the sewage treatment cost increase again, workers' wages, annual growth of water consumption, steam electricity, enterprises have been unable to control production costs continue to rise the pressure, can't keep small profit operation.

At present, many enterprises have chosen to raise prices together. It is understood that there are no less than 15 printing and dyeing enterprises in Jiaxing City. Compared with the dyeing fee in the first half of this year, the price of conventional products has increased by 1000-2000 yuan/ton, with a rise rate of about 10%~20%, while the price of a few varieties still maintains the original price.

Not only Jiaxing, but also printing and dyeing clusters in Suzhou, Shishi and Shaoxing have increased printing and dyeing processing fees to varying degrees since August in order to maintain production and operation. Many traders shook their heads and cried that the price went up by 2000. They could not communicate with customers and could not accept it. Business is hard!

There are still many uncertainties regarding raw materials

In terms of polyester, the trend in the second half of the year is still difficult to judge. It is believed that the operating rate of the previously discontinued polyester plant will reach a new high after the G20, and the supply and demand relationship between the upstream and downstream is still the decisive point of the game, according to Xiaobian.

On the contrary, before the G20, relying on the G20 market price joint insurance, speculation, the impact on the market will continue to weaken.

PTA, in the second half of the year, there are a lot of equipment to stop production, maintenance, I believe there will be some support, but the trend of crude oil prices is still confusing, the Federal Reserve rate hike, OPEC meeting progress, cost can provide how much support to PTA is still unknown.

To sum up, the textile market in the second half of the year is still not clear, good and bad, partners for the second half of the market and what kind of attitude?