Wool Textile Market Consumption Will Enter The Peak Season, And The International Competitiveness Will Be Steadily Improved

The year 2022 is coming to an end. In the third year of the new epidemic situation, the wool textile industry is facing complex and severe economic and market situations at home and abroad, as well as multiple challenges beyond expectations. The production and operation of the industry strive to overcome the impact of adverse factors such as frequent epidemic outbreaks and fluctuations in consumer demand, and actively and continuously improve the industry situation. The data of the first three quarters showed that the overall production and operation of the wool textile industry continued to show recovery and growth, the industry's profits remained at the current level, and the industry continued to actively integrate into the new development of dual cycle domestic and foreign markets. However, there were still some difficulties in the production and operation fields such as sales and circulation, and continued to recover facing risks and challenges.

1. Export still has a greater contribution to wool textile production, and the industry benefit level has dropped

Since 2022, the processing and production of wool textile industry has been maintained at a high level. In the first three quarters, the output of wool yarn and wool fabric of Enterprises above designated scale increased by 9.7% and 38.9% respectively.

But the most important factor affected by the wool market is the demand. The production trend of wool yarn and wool fabric has been gradually differentiated since 2016, showing a certain inverse correlation trend in the growth rate of output, reflecting the continuous fluctuation of market demand for wool textile products.

In terms of market demand, the demand of export market will play a greater role in 2022. According to the data of China Customs, from January to September, the export of wool fabrics totaled 55.69 million meters, a year-on-year increase of 44%, and the export of wool sweaters was 48.69 million pieces, with a year-on-year increase of 10.4%. The growth rates were synchronized with the growth of wool fabrics and wool yarns. According to the statistics of National Bureau of textile industry, the growth rate of delivery volume of wool and finishing enterprises was higher than that of the national textile industry by more than 8.9%, which was also higher than the average growth rate of textile enterprises in the third quarter.

From January to September, the profit level of the wool textile industry fell down compared with the first half of the year. The accumulated operating income of wool textile and dyeing and finishing enterprises above the designated scale decreased by 3.6%, the gross profit rate was 8.1%, and the profit margin was 2.6%. Compared with the first half of the year, the production and sales circulation channels of wool textile enterprises have not improved significantly, and the turnover rate of finished products is still at a low level, 6.0 times / year, which is lower than the average level of 12.2 times / year in the textile industry.

2. The domestic real economy recovered steadily, and the consumption demand of textile and clothing rose slowly

In the first three quarters, China's GDP grew by 3.0% year-on-year, 0.5 percentage points faster than that in the first half of the year. Among them, the added value of manufacturing industry increased by 3.2% year-on-year, keeping pace with the growth of GDP. The growth rate of wholesale and retail industry, transportation, warehousing and postal industry has changed from negative to positive, and the added value has increased by 1.6%, 2.6% and 2.8% respectively, which promotes the recovery of the industry.

From January to September, the total retail sales of clothing, shoes, hats and knitwear and textile products of units above the designated size reached 927.3 billion yuan, a decrease of 4% over the same period last year, and the online retail sales of wearing goods increased by 4.7% over the same period. Since the second half of the year, the domestic textile and clothing demand has been adjusted at a low level, which is in a slow climbing range, lagging behind the overall trend of social consumption demand, and the pulling effect on the recovery and development of wool textile industry needs to be further released.

3. The global wool textile consumption demand is still at a high level, and woven clothing is recovering rapidly

Affected by high inflation, the growth rate of retail sales of social consumption in the main wool textile consumer markets dropped. The retail consumption of the United States in September was basically flat on a year-on-year basis, while that of the European Union in August fell by 2.6%. With the arrival of the peak consumption season of wool textile products, wool textile consumption in the main markets this year has not been greatly affected by the overall retail trend of the society. From January to September, Japan imported 120.4 billion yen of wool textile products, about 800 million U.S. dollars, a year-on-year increase of 21.5%, an increase of 4.6 percentage points compared with the first half of the year. From January to August, the United States imported 2.7 billion US dollars of wool textile products, a year-on-year increase of 46%; From January to July, the amount of wool textile products imported by the EU from outside the region amounted to 2.4 billion euro, an increase of 44.8% over the same period of last year, both maintaining rapid growth.

In the European, American and Japanese markets, wool woven garments all showed rapid growth, with the import value increasing by 36%, 68% and 23% respectively, and the market demand for woven products has obviously recovered.

Enhance the competitiveness of China's wool products

China's wool products consolidate the importance of global wool textile consumer market. Since 2022, the wool textile industry has been following the global consumer market situation, and its market share in major markets has been further improved. According to the latest data, China's wool textile products accounted for 35%, 29% and 40% of the import value of wool textile products outside the EU region from January to July, from the United States from January to August, and from January to September, respectively, which increased by 2%, 8 and 2% compared with the first half of the year.

The value-added of all kinds of wool textile industry still needs to be further improved. At present, the added value level of domestic knitted yarn products is better than that of woven products. Taking the market situation of two kinds of products in EU as an example, from January to July, the average unit price of wool yarn imported from EU was 16000 euro / ton, among which the average unit price of wool yarn imported from China was 25000 euro / ton, which was significantly higher than the average level; In the same period, the average unit price of wool fabrics imported from EU was 32000 euro / ton, of which the average unit price of wool fabrics imported from China was 23000 euro / ton, which was lower than the average import price level.

In the fourth quarter, the consumption of wool textile market will enter the peak season, and the package of policies and measures for stabilizing the economy and successive policies and measures have been implemented effectively. However, it should be noted that under the influence of factors such as frequent outbreaks of epidemic diseases, relatively weak market demand recovery and the decline of enterprise profitability, wool textile enterprises still face more difficulties in production and operation. The wool textile industry still needs to actively explore the demand space of various products and consumer markets at all levels for wool textile products, and build a market pattern with internal circulation as the main factor and domestic and international double circulation, so as to seek greater opportunities and challenges.