Cheng Sujing, Lead analyst of CCFGroup, presented her report of Development of the yarn and textile and apparel market

Ms. Cheng presented the report from the operation and outlook of the Chinese yarn market, as well as the domestic and international textile and apparel markets.

Yarn market operation and outlook: Yarn market are in the off-season, with most prices showing weakness and poor profits. The operating rates of cotton yarn and  polyester yarn are relatively stable, while cotton yarn has seen a significant decline and is currently run at low rates. Finished yarn inventories are on the rise, with cotton yarn inventories already showing pressure, followed by polyester yarn, while rayon yarn perform reasonably well. Raw material procurement is cautious, with no significant replenishment. In 2024, the substitution effect between yarn is expected to strengthen further, especially in mainland China.

Domestic and international textile and apparel Markets: Domestic sales performance this year has been lukewarm, with some expectations for the export market, although the data has been less than satisfactory. China's traditional textile and apparel export markets in Europe, the United States, and Japan are declining in proportion, with markets such as ASEAN, the Belt and Road Initiative countries, and Central Asia gradually becoming focus areas. However, these markets differ from consumer markets in Europe, the United States, and Japan, which may lead to gradual adjustments in exported products. In the European, American, and Japanese textile and apparel import markets this year, the United States has shown the best performance, while Japan and the European Union are gradually recovering from a low point; whether growth will be initiated remains to be seen. Despite adjustments in the European, American, and Japanese textile and apparel import markets, China remains an indispensable part, with the largest market share, as global supply chains are being reshaped. Overseas apparel inventories have decreased to reasonable levels, and the potential for restocking in the future remains to be observed, with an expected increase in essential purchases compared to last year, although order flows may extend beyond China.