SunSirs: Demand for Masks is Surging, Non-Woven Fabric Receives Attention

With the deepening of the fight against the epidemic, in view of the current situation of the shortage of medical materials such as masks, the production enterprises are stepping up the resumption of production, and the shortage is expected to be alleviated by the end of February. This time, the mask and protective clothing with tight materials are mainly made of non-woven fabric, which is compared with the textile fabric. The basic raw material for non-woven fabric production is polypropylene (PP for short). Therefore, it fails to effectively boost the terminal demand of textile products. In addition, due to the extension of Spring Festival holiday, logistics constraints and other factors, the impact on the textile industry is more obvious.

The demand is restrained for a short time due to the delay of returning to work

The State Council announced the extension of the Spring Festival holiday, and many provinces and cities also issued a number of emergency notices in response to the epidemic, among which the enterprises involved should not return to work earlier than 24:00 on February 9. The textile and clothing industry is labor-intensive. Before the Spring Festival holiday, the downstream textile industry has significantly reduced the operating rate, and the operating rate of Jiangsu and Zhejiang loom factories has dropped to below 8%. At present, Shanghai, Jiangsu, Zhejiang, Anhui and other places postpone the date of textile workers' reworking, the consumption demand of terminal textile weaving is restrained in a short time, and the operating rate of weaving machine is increasing slowly or slowly compared with that of previous years. It is estimated that the loom load will reach about 30% from the middle and late February.

Limited logistics and pressured inventory

At the same time, in order to minimize the flow of personnel, more policies have been issued around the country to restrict the logistics transportation. According to the current understanding, as the textile industry concentration, the automobile transportation of some factories in Shandong, Jiangsu, Zhejiang and other regions has been affected, and the inventory pressure of most factories has increased compared with that before the festival. Most PTA plant devices are automatic and large-scale production. Therefore, during the Spring Festival, the operating rate of PTA devices remained near 90%, PTA supply continued to increase, and downstream demand continued to be depressed. Affected by the epidemic, demand recovery was delayed, and PTA accumulation will exceed expectations.

Textile export faces test

In 2019, the international environment for the development of China's textile industry is becoming more and more complex, especially since the Sino US trade friction, the textile export pressure has increased. From January to December 2019, China's cumulative exports of textiles and clothing amounted to $271.8362 billion, a year-on-year decrease of 1.89%, of which the cumulative exports of textiles amounted to $120.2692 billion, a year-on-year increase of 0.91%; the cumulative exports of clothing amounted to $151.567 billion, a year-on-year decrease of 4.01%. Under this epidemic situation, China's textile export will face more tests.

Analysts of SunSirs believes that in the short term, the textile slack season will continue, the demand will be blocked, and the production time of traditional textile peak season may be squeezed. After the start of construction, the textile enterprises may have the phenomenon of reduced orders and insufficient operation rate. The direct impact on the textile market will be strengthened, and it is expected that a wave of decline in the textile raw material market will be inevitable. At present, no matter what industry we are in, it is still the top priority to work together to fight the epidemic. We believe that with the continuous improvement of epidemic prevention and control and the recovery of production, we will finally usher in the dawn.

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