According to customs statistics, my country’s home textile product exports from January to July were US$18.44 billion, a year-on-year increase of 44.8%. However, the cumulative growth rate narrowed 10 percentage points from January to June and was still 19.8% higher than the same period in 2019. Among them, exports of home textile products to the United States in the first seven months were US$6.2 billion, a year-on-year increase of 53.7%, but the cumulative growth rate was narrowed by 12 percentage points compared with the previous six months; exports to the EU were US$2.47 billion, a year-on-year increase of 35.4%, but the cumulative growth rate was narrower than the previous six months. It narrowed by 7 percentage points in 6 months. In July, my country’s home textile product exports also fell sharply after the “double decline” in the growth rate of my country’s textile and clothing exports; and from the feedback from trading companies in Jiangsu, Zhejiang, Shandong, Guangdong and other places in August, the export of home textile products has not improved, and the expected growth rate will further decline year-on-year.
Why did home textiles, the engine of export growth for textile and apparel products, hit the brakes? The industry summarizes the following points:
First, since May, major textile countries such as India, Bangladesh, and Pakistan have forced the textile and garment industry to resume work under the premise that the epidemic situation has eased slightly. production, some home textile orders that have returned or are returning to China, Vietnam, etc. have quickly withdrawn; secondly, the export grade of home textile products is low, the profit is low, and the added value is not high. In June/July/August, cotton yarn futures have surged. Under the premise, home textile enterprises and foreign trade exporters are simply unable to accept and digest it, and their enthusiasm for taking orders and exporting continues to decline; thirdly, the sea freight has risen sharply and the situation of “hard to find” containers and shipping space is still fermenting. For low profits For the export of home textile products, there is an increasing phenomenon that “flour is more expensive than bread”. Due to the uncertainty of the shipping date and the greatly extended docking/unloading period (some ports in the United States and Europe take 10-20 days), foreign buyers Chinese manufacturers generally lack confidence in placing orders and accepting orders; fourth, the RMB exchange rate generally fluctuated within a narrow range in July (the central parity rate at the end of the month closed at 6.4602, basically the same as 6.4601 at the end of last month), and the direction is unclear. Home textile companies are optimistic about the next 2021. Concerns about RMB appreciation in the first half of the year have intensified. </p
