In the first half of 2018, the global economy continued to recover. China actively promoted the reform of the supply-side structure, and the economic development was stable. However, the protectionism in the global trade sector was on the rise, and the rise in oil prices gave the development of the industrial textile industry. The textile industry faces a more favorable but more complex environment. In the first half of the year, the industrial added value growth rate of China's industrial textile industry reached 7.8%, an increase of 3.8 percentage points over the same period of last year. The main business income and total profit of enterprises above designated size increased by 7.75% and 1.39% respectively, and the industry profit rate was 5.1%. The overall situation is stable and positive.
According to the association's research, the industry's prosperity index for the first half of 2018 is 77.9, and the expected index for the second half of the year is 71.5, which has declined compared with the whole year of 2017, reflecting the current complex economic environment for the performance and future expectations of the company. There is a certain impact, but the two indicators are still much higher than the line of glory.
Production maintains a high growth rate
According to the association's research, the demand index of the domestic market in the first half of the year was 72.0, and the demand index of the foreign market was 65.1. The change in the global trade situation had a certain negative impact on the demand for industrial textiles in overseas markets; the industry's production index was 76.0, and 2017. The year is basically flat. From the main products, according to the National Bureau of Statistics, the output of China's non-woven fabrics in the first half of the year reached 1,85,100 tons, an increase of 8.24%; the output of cord fabrics was 315,200 tons, a decrease of 3.38%. As the main raw material of industrial textiles, after the adjustment in 2017, the output growth rate of the non-woven fabrics has exceeded 2016, but there is still a certain gap with the high growth rate before 2015. Cord fabric is a traditional product in the industry, and its market is closely related to tire demand. In the first half of the year, the output of China's tires only increased by 0.3%, and the amount of polyester and nylon cord fabrics remained basically the same.
Improved economic efficiency but increased differentiation
According to the National Bureau of Statistics, in the first half of the year, the main business income and total profit of enterprises above designated size in the industrial textile industry were 128.918 billion yuan and 6.58 billion yuan, up 7.75% and 1.39% respectively, and the growth rate of income was in the textile industry. At a relatively high level, the growth rate of total profit has also reversed the decline since 2017. The industry's average profit margin was 5.1%, down 0.32 percentage points year-on-year. The gross profit margin was 13.15, down 0.56 percentage points year-on-year; the industry's loss was 14.66%, and the loss-making enterprise's loss was 439 million yuan, up 49.31% year-on-year. And the intensity of losses has increased, and the loss of non-woven fabrics has increased by 73.5%. According to the tracking and analysis of the association's key enterprises, the main business income and total profit of the backbone enterprises of the association in the first half of 2018 increased by 14.11% and 2.65% respectively, and the profit rate was 7.06%.
In the first half of the year, the growth rate of industry profits resumed a small increase. The main reason was that the development of other industrial textiles in which filtration, geotechnical, security and automotive textiles were located was strong. The main business income and total profit increased by 9.02% and 30.34% respectively. Reaching 7.11% is the highest profit margin in the textile industry.
The high prices of major raw materials in the industry are still putting a lot of pressure on the overall profitability of the industry. In the first half of 2018, the prices of main raw materials for industrial staple textiles such as polyester staple fiber, nylon and polypropylene were relatively high compared to 2017. The price of polyester staple fiber has been fluctuating since May 2017 and is still maintained. In a higher price range, the price fluctuation of polypropylene fiber in the first half of the year also reached 10%.
In the first half of the year, the main business income and total profit of non-woven fabric enterprises above designated size reached 62.236 billion yuan and 3.105 billion yuan respectively, up 7.42% and 0.37% year-on-year respectively, and the export delivery value increased by 14.38%, with a profit margin of 4.99%. It was down by 0.39 percentage points year-on-year. In terms of production, sales and export delivery values, the market demand for nonwovens remained strong, and revenue growth was lower than production growth, indicating that despite the sharp rise in raw material prices, it is difficult for companies to transfer the pressure of rising costs to downstream users. In the first half of the year, the loss of non-woven fabrics increased from 9.72% in the same period last year to 14.18%, and the loss of loss-making enterprises also increased by more than 70%. The rise in raw material prices and fierce competition in the industry made some enterprises more difficult to operate.
The main business income of the rope cable increased by 5.79%, and the profit decreased by 3.63%. However, the loss of the loss-making enterprises in the industry also decreased by 28.08%. The main business income of textile belts and cord fabrics increased by 14.04%, which was the highest in the industry and the profit decreased by 1.96%. The main operating income of the awning canvas industry in the first half of the year was basically the same as that of last year. However, the rising prices of raw materials and the tightening of environmental protection policies have led to the continuous increase in the cost of industrial enterprises. The profit of the industry has dropped by 24.87%, and the profit rate has also dropped by 1.39 percentage points. .
Exports grow steadily
According to the National Bureau of Statistics, in the first half of the year, the export delivery value of enterprises above designated size increased by 5.57% year-on-year, of which the export delivery value of non-woven fabrics increased by 14.38%, and the growth rate increased by 7.89 percentage points compared with the same period of last year. From the data of enterprises above designated size, the proportion of export value of industrial textiles to revenues has been slightly higher than that of clothing, and the importance of overseas markets for the steady development of the industry is increasing.
Annual forecast
In the second half of the year, China will continue to adhere to the overall tone of steady progress, adopt a positive policy mix, resolve risks, and stabilize development expectations. However, the rise in raw material prices and the risks brought about by Sino-US trade frictions are increasing, and multiple risk factors are superimposed. It will have a greater negative impact on the development of the industry. It is expected that the main indicators of the industry will maintain a single-digit low- and medium-speed growth, the industry's profitability will be reduced, and the differentiation between business operations will be more obvious.
