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Since May, orders for Chinese fabrics and textile raw materials have increased by more than 100%. The clothing sector saw orders rise more than 200 per cent year on year, with orders quadrupling in July.


Recent media reports said that due to the impact of the global COVID-19 epidemic, the construction of textile enterprises in India was blocked, resulting in a large number of textile orders to China. According to textile companies in Keqiao, A textile hub in Shaoxing, Zhejiang province, in the Yangtze River Delta, a large number of overseas orders have recently been diverted from India. In addition, affected by the combination of foreign trade and domestic demand orders, the price of textile raw materials rose by about 20%.


"Since the beginning of October, foreign trade orders have started to surge and customers are placing more orders every day. Raw material prices are going up every day, in the morning and in the afternoon." Shaoxing Ke Qiao Sen such as textile Co., LTD., enterprise director said to reporters.


The company mainly produces knitted fabrics, such as cashmere, lamb wool, flannel, hoodie and so on. The head of the enterprise told reporters that, according to his understanding, the previous cooperation in India, Bangladesh and other textile factories are now unable to operate, so orders flow to the country. "There are additional orders from Europe and the United States, as well as Japan and South Korea. From June to September in previous years, we exported on average one container per day. This year, before the outbreak hit in September, the export volume dropped sharply. Now, export orders have recovered to 70% of the previous year."


At the same time, the person in charge said, as the "Double 11" shopping festival in China will soon start, the stores in advance to prepare goods has also led to the recent surge in domestic fabric orders. "Domestic trade and foreign trade orders have collided this year, but our production capacity cannot be increased urgently. Recently, we sold out the inventory of last year and the year before last!" He said.


The surge in orders has been accompanied by a rise in the price of raw materials. "The prices of textile raw materials FDY (fully stretched silk) and DTY (stretched deformed silk), which had dropped to 5 or 6 yuan per kg during the epidemic, have now risen to 7 or 8 yuan per kg. "Spandex prices used to fluctuate between 1 and 2 per cent. Now they are up more than 10 per cent and close to 20 per cent." Said the enterprise person in charge.


According to the China Cotton Association, the China Cotton price Index (CCIndex3128B) stood at 14,923 yuan per ton as of October 20, up 2,126 yuan per ton from the average price in September, or 16%.


It was previously reported that since September, many large export-oriented textile enterprises in India could not guarantee normal delivery due to the epidemic, while retailers in Europe and the United States shifted many orders originally produced in India to China in order to ensure that supplies would not be affected during the Thanksgiving and Christmas selling seasons.


Recently, a relevant person in charge of the Foreign Trade Department of the Ministry of Commerce responded to this question by saying that it is normal market behavior for Indian textile orders to be transferred to China. China was the first country to resume work and production, effectively guaranteeing supply on the international market and supporting the smooth operation of the international industrial and supply chains.


India is the world's largest producer of cotton and the second-largest producer of textiles and clothing, according to public records. The textile and apparel industry is one of India's biggest sources of foreign exchange revenue, accounting for about 15 per cent of total export revenues.


Statistics from the General Administration of Customs also confirm that China's textile exports are currently recovering. Li Kuiwen, spokesman for the General Administration of Customs, said that in the first three quarters of this year, the export of seven categories of labor-intensive products, including textiles and clothing, reached 2.59 trillion yuan, up 5.4%. The export of textiles, including face masks, reached 828.78 billion yuan, up 37.5%.


According to statistics, in August, the country's textile exports of 14.72 billion US dollars, a year-on-year increase of 47%; Garment exports reached us $16.21 billion, up 3.2% year on year, marking the first monthly positive growth this year.


The data obtained from Alibaba International website also shows that since May, the number of orders for Chinese fabric and textile raw materials has increased by more than 100%. The clothing sector saw orders rise more than 200 per cent year on year, with orders quadrupling in July.


In addition, many companies engaged in domestic trade of textiles have also received orders from foreign trade companies in this wave of orders. An official of Zhejiang Jinhua Henggang Home Textile Co., Ltd. told the Paper (www.thepaper.cn) that the company has recently received an unprecedented order from international fast-selling brand ZARA on Alibaba's domestic trade platform 1688.


"Orders for hundreds of thousands of tablecloths, accounting for 60 percent of the company's total production this year, have led to a fivefold increase in sales over the same period last year. I didn't expect to receive an order from ZARA. These tablecloths were previously made in India. To ensure the completion of these orders, we opened a new production line, expanded the staff, and worked overtime every day and night." The head said.


A person in charge of Hebei Gaoyang Rongtian Textile Co., Ltd. told reporters that the company has received a surge in foreign trade orders since September, "The factory has not been so concentrated in the past 20 years. One month, towel orders reached 2 million. As a domestic trader, it is four or five years since we last had an order from India."


Market led by the textile industry shares also experienced a significant rise. October 9 solstice 19, jujie microfiber (300819) in 7 trading days in the closing price of a cumulative increase of 97.77%. On October 19, Jujie Micro Fiber issued an announcement of abnormal fluctuation in stock trading, saying that it had not found any increase in the order volume of Indian textile industry due to the epidemic after multi-party verification, as reported by some social media recently.