Cheng Sujing, Lead Analyst of CCFGroup, delivered her report of Textiles performance under the background of consumption recovery

Her report is divided into two parts:

In the first part, current situation of the textile industry and operation of yarn market is analyzed. Ms. Cheng pointed out that the overall performance of the textile industry in the first half of 2023 has been poor. Although finished product inventories showed a downward trend, the magnitude was not significant. In addition, there have been differences in the prices of various types of yarn, operating rate, finished product inventories, raw material inventories, and profits. The performance of 100% cotton yarn has been relatively good but gradually declining, while 100% polyester yarn has performed poorly. It is expected that yarn production and sales will have a probability of recovery in 2023, with noticeable obstacles in exports, except for a significant increase in exports of PSF and PFY.

In the second part, the changes in the domestic and export markets were introduced. Ms. Cheng stated that the domestic market for textiles and garments performed better than the export market this year, but the recovery in domestic sales was not as expected. In terms of exports, the textile and garment exports have been sluggish, with no signs of improvement, and there have been changes in the export destinations. In addition, imports in Europe, America, and Japan have been consistently weak, with China's market share continuing to decline. The export performance of ASEAN, India, Bangladesh, and other markets has been poor due to the sluggishness in Europe, America, and Japan, although Bangladesh has shown a relatively favorable preference.