China textile union survey weekly: the industry recovery overall stable, foreign trade situation tends to be severe

In order to better understand the direct impact of covid-19 epidemic on the production and operation of the textile industry, CFS launched a weekly survey on the textile enterprises' resumption of work and production on March 3. As of 12 o 'clock on March 25, a total of 465 enterprises had reported their start of work online.

The China textile federation summarized and analyzed the weekly information, reported the latest progress of industry resumption and production to the national development and reform commission and the relevant departments and bureaus of the ministry of industry and information technology, gave feedback on the difficulties encountered by enterprises and policy demands, and put forward Suggestions on policy measures. Now the report of textile enterprises' resumption of work and production within a week from March 18th to March 25th is as follows for the reference of the industry.

The situation of textile enterprises returning to work and production is generally stable, and the situation of small and micro enterprises returning to work is further improved

According to the results of the weekly survey, from 12:00 on March 18 to 12:00 on March 25, a total of 245 enterprises submitted effective data of returning to work through the online questionnaire, and the proportion of enterprises that had returned to work reached 97.1%, which was 0.2 percentage points higher than that of the previous week. The number of workers returning to work at 238 reinstated enterprises reached 301,000, accounting for 91.4 percent of the total number of employees under normal conditions, up 4.1 percentage points from the previous week's survey. Hubei, xinjiang and other regions previously affected by the outbreak to delay the resumption of work enterprises began to resume production.

The CFS cluster office and the park office conducted a survey on 28 key textile industry clusters in 13 provinces. As of 15:00 on March 19, there were 66,000 textile enterprises in the above clusters returning to production, accounting for 86.2% of the total number of enterprises in the clusters, up 11.2 percentage points from the survey data a week ago. The number of people returning to work reached 1.561m, or 71.5 per cent of normal employment, up 12.5 percentage points from the previous survey a week ago. Among the 3,942 enterprises above a certain size in the cluster, the proportion of enterprises that have returned to work reached 98.6%, and the proportion of employees that have returned to work reached 81.6%, which were 3.2 and 10 percentage points higher than the survey data last week, respectively.

The situation of small and micro enterprises returning to work and production continued to improve. Among the 28 key industrial clusters, a total of 62,000 enterprises under the scale have returned to work, accounting for 85.6% of the total number of enterprises in the clusters, up 10.9% from the survey data a week ago. The number of employers returning to work reached 932, 000, or 66 per cent of the normal workforce, up 14.7 percentage points from the previous survey a week ago.

The coordination efficiency of the industrial chain has been steadily improved, and the start-up load of enterprises has been kept stable

At the present stage, the progress of resuming production in the upstream and downstream of the textile industry chain is basically synchronized, and the coordinated operation efficiency of the whole industry chain is generally good. According to the weekly survey data, the reemployment rate of the surveyed enterprises in the upstream cotton spinning and chemical fiber industries of the textile industry chain, as well as the middle and downstream filament weaving, printing and dyeing, and knitting industries reached over 95%, and the rate of workers returning to work increased to over 90%. According to the survey data of China textile union on the key industrial clusters, among the 40,000 enterprises in 10 garment and home textile industrial clusters with complete information, such as dongguan, nantong, changshu and haining, the proportion of enterprises that have returned to work has reached 84.4%, which is 9.5 percentage points higher than that in the previous week's survey. Among them, the proportion of enterprises above the scale to resume work reached 98.8%.

The starting load of enterprises remains stable. According to the survey data of China textile weekly, among 242 enterprises that have returned to work after filling in the capacity effectively, 60.3% of them have reached 80% capacity utilization rate, which is basically the same as that of the survey one week ago. The percentage of companies surveyed with less than 50% capacity utilization was 10.3 percent, down 3.7 percentage points from a week ago.

As a result of the global outbreak, business orders have fallen and exporters have been asked to delay or cancel orders

Textile orders showed signs of improving last week, but that trend changed this week. Affected by the global spread of COVID - 19 epidemic, a large number of businesses in developed countries, such as the United States and Europe, were shut down. Many export enterprises suffered from the situation of returning orders and abandoning goods from overseas customers, and the export situation of the textile industry became more severe.

According to a survey by the China home textile industry association, since March 18, many exporters have received delayed shipment notices from customers in Europe and the United States, and some overseas customers have canceled orders for nearly two months. A large number of downstream export enterprises were withdrawn from orders, resulting in the upstream of the industrial chain of domestic suppliers are also facing pressure to reduce orders. According to a survey of more than 120 key enterprises conducted by the China cotton textile industry association from March 16 to 20, 35 percent of the surveyed enterprises reported insufficient orders, up 12.1 percentage points from a week ago.

According to the survey data of CSPL weekly, among 242 enterprises that have returned to work this week and filled orders effectively, the proportion of enterprises whose orders reached 80% of the normal situation was 31.8%, down 12.8% from the time of the survey a week ago. The percentage of companies surveyed with orders below the usual 50 percent rose to 26.4 percent, up 11.4 percentage points from a week ago. At 12:00 noon on March 22, the weekly increased the order withdrawal survey. By 12:00 on March 25, 37% of the surveyed enterprises reported that they had encountered customer cancellations.

Insufficient orders, sales are not smooth is the outstanding difficulty that the current enterprise faces. Under the severe situation of global epidemic prevention and control, it is suggested that enterprises carefully arrange production and actively prevent and control capital chain risks

With the improvement of the situation of epidemic prevention and control in China, the most prominent problems of returning workers and logistics problems in the early days of returning to work have been greatly alleviated. The shortage of orders has become the primary difficulty in the current production and operation of enterprises. According to the results of rework weekly report and cluster survey, 57% of enterprises and 75.9% of industrial clusters report that there is a shortage of orders. In addition, due to the epidemic situation is still not over, commercial entities have not fully returned to normal business, the passenger flow is also less than the normal serious, poor sales channels is an important issue facing domestic enterprises at this stage. Export enterprises in addition to the decline in orders, also appeared in the goods in overseas detention or was rejected, the cost burden increased.

CSPCC has carefully sorted out the policy demands raised by enterprises, and put forward Suggestions on policies and measures to relevant government departments to vigorously strengthen financial support, effectively reduce the burden on enterprises, start domestic consumption as soon as possible, and support export enterprises to tide over the difficulties.

At present, although the situation of domestic epidemic prevention and control is steadily improving, the situation of global epidemic prevention and control is extremely severe, which is expected to last for a long time. The decline of the international market is obvious, and the impact on the domestic textile supply chain is highly uncertain. Recently, due to the cancellation of orders, a lot of textile enterprises inventory surge, the capital chain is tight. It is suggested that enterprises should make expectations in accordance with the overall tight market situation in the first half of the year, make reasonable plans for production and operation strategies, carefully arrange production load, raw material inventory and investment projects, vigorously prevent and control capital chain risks, and strive to maintain smooth operation at a low speed. In order to better understand the direct impact of covid-19 epidemic on the production and operation of the textile industry, CFS launched a weekly survey on the textile enterprises' resumption of work and production on March 3. As of 12 o 'clock on March 25, a total of 465 enterprises had reported their start of work online.

The China textile federation summarized and analyzed the weekly information, reported the latest progress of industry resumption and production to the national development and reform commission and the relevant departments and bureaus of the ministry of industry and information technology, gave feedback on the difficulties encountered by enterprises and policy demands, and put forward Suggestions on policy measures. Now the report of textile enterprises' resumption of work and production within a week from March 18th to March 25th is as follows for the reference of the industry.

The situation of textile enterprises returning to work and production is generally stable, and the situation of small and micro enterprises returning to work is further improved

According to the results of the weekly survey, from 12:00 on March 18 to 12:00 on March 25, a total of 245 enterprises submitted effective data of returning to work through the online questionnaire, and the proportion of enterprises that had returned to work reached 97.1%, which was 0.2 percentage points higher than that of the previous week. The number of workers returning to work at 238 reinstated enterprises reached 301,000, accounting for 91.4 percent of the total number of employees under normal conditions, up 4.1 percentage points from the previous week's survey. Hubei, xinjiang and other regions previously affected by the outbreak to delay the resumption of work enterprises began to resume production.

The CFS cluster office and the park office conducted a survey on 28 key textile industry clusters in 13 provinces. As of 15:00 on March 19, there were 66,000 textile enterprises in the above clusters returning to production, accounting for 86.2% of the total number of enterprises in the clusters, up 11.2 percentage points from the survey data a week ago. The number of people returning to work reached 1.561m, or 71.5 per cent of normal employment, up 12.5 percentage points from the previous survey a week ago. Among the 3,942 enterprises above a certain size in the cluster, the proportion of enterprises that have returned to work reached 98.6%, and the proportion of employees that have returned to work reached 81.6%, which were 3.2 and 10 percentage points higher than the survey data last week, respectively.

The situation of small and micro enterprises returning to work and production continued to improve. Among the 28 key industrial clusters, a total of 62,000 enterprises under the scale have returned to work, accounting for 85.6% of the total number of enterprises in the clusters, up 10.9% from the survey data a week ago. The number of employers returning to work reached 932, 000, or 66 per cent of the normal workforce, up 14.7 percentage points from the previous survey a week ago.

The coordination efficiency of the industrial chain has been steadily improved, and the start-up load of enterprises has been kept stable

At the present stage, the progress of resuming production in the upstream and downstream of the textile industry chain is basically synchronized, and the coordinated operation efficiency of the whole industry chain is generally good. According to the weekly survey data, the reemployment rate of the surveyed enterprises in the upstream cotton spinning and chemical fiber industries of the textile industry chain, as well as the middle and downstream filament weaving, printing and dyeing, and knitting industries reached over 95%, and the rate of workers returning to work increased to over 90%. According to the survey data of China textile union on the key industrial clusters, among the 40,000 enterprises in 10 garment and home textile industrial clusters with complete information, such as dongguan, nantong, changshu and haining, the proportion of enterprises that have returned to work has reached 84.4%, which is 9.5 percentage points higher than that in the previous week's survey. Among them, the proportion of enterprises above the scale to resume work reached 98.8%.

The starting load of enterprises remains stable. According to the survey data of China textile weekly, among 242 enterprises that have returned to work after filling in the capacity effectively, 60.3% of them have reached 80% capacity utilization rate, which is basically the same as that of the survey one week ago. The percentage of companies surveyed with less than 50% capacity utilization was 10.3 percent, down 3.7 percentage points from a week ago.

As a result of the global outbreak, business orders have fallen and exporters have been asked to delay or cancel orders

Textile orders showed signs of improving last week, but that trend changed this week. Affected by the global spread of COVID - 19 epidemic, a large number of businesses in developed countries, such as the United States and Europe, were shut down. Many export enterprises suffered from the situation of returning orders and abandoning goods from overseas customers, and the export situation of the textile industry became more severe.

According to a survey by the China home textile industry association, since March 18, many exporters have received delayed shipment notices from customers in Europe and the United States, and some overseas customers have canceled orders for nearly two months. A large number of downstream export enterprises were withdrawn from orders, resulting in the upstream of the industrial chain of domestic suppliers are also facing pressure to reduce orders. According to a survey of more than 120 key enterprises conducted by the China cotton textile industry association from March 16 to 20, 35 percent of the surveyed enterprises reported insufficient orders, up 12.1 percentage points from a week ago.

According to the survey data of CSPL weekly, among 242 enterprises that have returned to work this week and filled orders effectively, the proportion of enterprises whose orders reached 80% of the normal situation was 31.8%, down 12.8% from the time of the survey a week ago. The percentage of companies surveyed with orders below the usual 50 percent rose to 26.4 percent, up 11.4 percentage points from a week ago. At 12:00 noon on March 22, the weekly increased the order withdrawal survey. By 12:00 on March 25, 37% of the surveyed enterprises reported that they had encountered customer cancellations.

Insufficient orders, sales are not smooth is the outstanding difficulty that the current enterprise faces. Under the severe situation of global epidemic prevention and control, it is suggested that enterprises carefully arrange production and actively prevent and control capital chain risks

With the improvement of the situation of epidemic prevention and control in China, the most prominent problems of returning workers and logistics problems in the early days of returning to work have been greatly alleviated. The shortage of orders has become the primary difficulty in the current production and operation of enterprises. According to the results of rework weekly report and cluster survey, 57% of enterprises and 75.9% of industrial clusters report that there is a shortage of orders. In addition, due to the epidemic situation is still not over, commercial entities have not fully returned to normal business, the passenger flow is also less than the normal serious, poor sales channels is an important issue facing domestic enterprises at this stage. Export enterprises in addition to the decline in orders, also appeared in the goods in overseas detention or was rejected, the cost burden increased.

CSPCC has carefully sorted out the policy demands raised by enterprises, and put forward Suggestions on policies and measures to relevant government departments to vigorously strengthen financial support, effectively reduce the burden on enterprises, start domestic consumption as soon as possible, and support export enterprises to tide over the difficulties.

At present, although the situation of domestic epidemic prevention and control is steadily improving, the situation of global epidemic prevention and control is extremely severe, which is expected to last for a long time. The decline of the international market is obvious, and the impact on the domestic textile supply chain is highly uncertain. Recently, due to the cancellation of orders, a lot of textile enterprises inventory surge, the capital chain is tight. It is suggested that enterprises should make expectations in accordance with the overall tight market situation in the first half of the year, make reasonable plans for production and operation strategies, carefully arrange production load, raw material inventory and investment projects, vigorously prevent and control capital chain risks, and strive to maintain smooth operation at a low speed.