In the first 11 months of 2017, the overall operation of China's textile industry showed a steady growth rate, steady growth of domestic demand, a pick-up in the external demand market, active investment in the east and a steady improvement in quality and efficiency. Specifically reflected in: growth and efficiency, high capacity utilization, rising consumer spending, the conversion of old and new kinetic energy several aspects, the overall embodies the industry's high-quality development. This is the reporter's information obtained from the 2017 China Textile Industry Federation Summary Meeting held on January 22 in Beijing.

The growth rate is steady

According to statistics from China Textile Industry Federation Institute of Industrial Economics, in the first 11 months of 2017, China's industrial added value growth rate was 6.6%, manufacturing growth rate 7.7% and textile industry growth rate 4.9%. The value-added growth of the textile industry slowed gradually from 6.7% in February 2016 to 4.9% in December 2016; after 2017, the growth rate has steadily stabilized and reached 4.8% for the full year of 2017. The basic development of China's textile industry transition from the shift to a smooth period. In the various branches of textile industry, the growth of home textile, clothing and chemical fiber industries increased sharply, with the growth rates reaching 9.3%, 6.0% and 5.4% respectively.

Domestic demand steady growth

In 2017, the retail sales of apparel shoes, hats and knitwear amounted to RMB145.57 billion, an increase of 7.8% over the same period of last year, an increase of 0.8 percentage points from the previous year and the first increase in seven years.

According to a preliminary estimate by China Textile Spread, in 2017, the trade volume of e-commerce in China's textile industry is about 5.34 trillion yuan, up by 20% over the same period of last year. It can be seen that the scale of e-commerce transactions in the textile industry maintained a steady growth at a relatively high speed.

The urbanization rate in China has continued to increase from 45.9% in 2007 to 58.5% in 2017. As there is a gap between urban and rural areas in the expenditure on clothing and apparel, as the urbanization rate continues to rise, the overall expenditure on clothing and apparel will continue to increase.

Foreign demand market pick up

In 2017, the global economy grew by 3.6%, up 0.4% from the previous year. Three-quarters of the countries in the world achieved positive growth and a recovery and resonance situation. Global trade increased by 4.2%, up by 1.8% over the previous year, and trade growth was better than Economic growth, market demand, warming economic recovery has become increasingly steady and bright.

In 2017, China's textile and garment exports reached 266.95 billion U.S. dollars, an increase of 1.53% over the same period of last year, reversing the negative growth for two consecutive years, and the external demand market rebounded significantly.

In relation to the volume and price of textile and apparel exports, the overall increase in volume of inventories decreased, mainly driven by quantity. From January to November 2017, the number of China's textile and apparel exports increased by 6.63% as compared with the same period of last year, reversing the negative growth in two years; the drop in export prices narrowed to -6.3%.

In China's textile and apparel export market structure, exports to the "Belt and a Road" country accounted for 33.36% of the total exports of textile and apparel products, with 18.09%, 17.43% and 7.8% respectively in Europe, the United States and Japan.

�� EU market:

From January to November 2017, the EU imported 105.26 billion euros of textile and apparel, up by 1.78% from the same period of last year, reversing the negative growth of the previous year. From the EU textile and garment import growth rate of view, from February 2016 began to decline to the bottom of March 2017, then gradually narrowed the decline until June 2017 to reverse the negative growth, the growth rate stabilized at about 2% fluctuations.

�� US market:

From January to November 2017, the United States imported 98.38 billion U.S. dollars of textile and apparel, an increase of 1.24% over the same period of previous year, reversing the negative growth of the previous year. Judging from the growth rate of the US textile and apparel imports, the decline has continued to deepen from March 2016 to February 2017, after which the decline has been gradually narrowed until it reversed negative growth in October 2017 and achieved positive growth.

�� Japan market:

From January to November 2017, Japan imported 3.7051 trillion yen in textile and apparel, an increase of 4.04% from a year earlier, reversing the negative growth of the previous year. Judging from the growth rate of Japan's textile and apparel imports, the decline slowed down steadily from March 2016 to October 2016, after which the decline narrowed gradually until July 2017, reversing negative growth and maintaining steady growth.

�� Market along the Belt and Road:

From January to November 2017, China's textile and clothing exports to the "Belt and Road" countries reached 83.435 billion U.S. dollars, up 3.11% over the same period of previous year, reversing the negative growth for two years. Among them, the top five markets are Vietnam, Russia, the Philippines, Bangladesh and the UAE, with a total export of 35.34 billion U.S. dollars, accounting for 42.4% of the total exports of textile and apparel to the Belt and Road. The growth of the export of textile and clothing along the Belt and Road is higher than the growth of the export of the industry, accounting for more than one-third of the export of textile and garment products along the Belt and Road.

Eastern investment is positive

From January to November 2017, the fixed investment of China's textile industry was 1230.93 billion yuan, an increase of 6.29% over the same period of last year. In terms of the regional structure, the growth rate of investment in the eastern region was 8.7%, an acceleration of 4.5 percentage points over the same period of the previous year and accounting for 80.1% of the national investment increment. The relatively high growth rate in the eastern part of the country shows that the enterprises are upgrading and upgrading High input enthusiasm.

Except for the chemical fiber industry, the growth rate of investment in the front-end industries of the industry chain decreased from the same period of last year. The investment growth rate of the three major terminals increased over the previous year. The total investment in the three terminals totaled 597.04 billion yuan, accounting for 48.5% of the total investment in the industry. The investment growth was 6.0%, 25.8% and 4.8% respectively.

The quality of the effect of a steady increase

In the first eleven months of 2017, the profit margin of the textile industry was 5.26%, up 0.13% from the same period of last year, and the profitability of the industry was enhanced. The main revenue of one hundred yuan was 88.49 yuan, down 0.1% from the same period of last year and slightly increased in cost control ; Asset-liability ratio was 51.8%, down 0.22 percentage points from the same period of the previous year, and achieved some success through deleveraging.

From the perspective of sub-sectors, the profit growth of chemical fiber, filament yarn weaving and textile machinery industry witnessed remarkable growth growth. The profit growth of cotton spinning, hemp spinning and industrial use industries declined. The profit growth of chemical fiber industry accounted for 50.7% of the total industry profit growth.

Differentiation in different sectors of the industry's internal industrial chain is larger: from January to November 2017, the profit margin of China's textile industry increased by 0.13 percentage point. Among them, the profit margin of chemical fiber, filament yarn and textile machinery industry increased significantly, with profit margins of 5.30%, 4.94% and 6.90%, respectively, up from the same period of previous year. Profitability of cotton spinning, hemp spinning and industrial sectors was higher than that of the same period of previous year Decline, profit margins were 4.64%, 4.17% and 5.63%, respectively, over the same period decreased.

2018 Economic Outlook

Looking forward to the trend of economic operation of the industry in 2018, the analysis of China Academy of Industrial Economics shows that the growth rate of China's textile industrial added value will remain at 5%, the export growth will remain at 2%, the main business revenue growth will be 7% Total profit growth 7%.

In terms of raw material prices, the cotton price trend is relatively stable. The supply and demand pattern in the international cotton market is relatively loose and lacks the basis for sharp price increases. Although the domestic cotton supply gap is still under way, with the adjustment of the State Reserve and import policies, the spread to the international market is expected to be controlled at Reasonable interval.

International crude oil prices have risen, the international crude oil supply gradually eased. Although oil prices will push up the cost of chemical fiber, but it will also bring upstream chemical fiber product sales price upside support, chemical fiber industry is expected to continue to maintain rapid growth in 2017.

In terms of international market demand, the demand in the international market has been steadily increasing but the growth rate will not significantly increase. As the global economy continues to recover, consumer confidence will improve and overall consumer demand will grow steadily. Economic recovery cycle, clothing consumption growth rate lower than durable goods and service expenditures. Consumption in developed countries generally rebounded with the economic recovery. Consumer spending structure is relatively stable, the proportion of clothing and shoes spending remained at 3% to 4%. However, during the economic recovery cycle, residents will prefer entertainment and food and beverage consumption and expand related expenses. Clothing consumption ratio will be reduced, consumption growth is relatively slow.

Consumption will steady growth in domestic demand, the growth rate is basically the same as in 2017. On the one hand, the sustained and steady growth of the national economy provides a healthy and healthy economic environment for domestic consumption. On the other hand, the rapid growth in resident income, increased willingness to spend, and the rapid development of consumer finance have provided positive support for the expansion of domestic demand. The characteristics of domestic demand upgrading are significant. Consumers' demands for quality, culture and environmental protection are increasing. The rapid development of experience consumption and sharing economy all pose new challenges to the optimization of supply organizations in the textile industry.