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Shanghai, Oct. 20 (Xinhua) -- (Chen Fangchen Yukang, Shanghai Securities News) Recently, there has been a lot of buzz about Indian textile orders coming back to China. The Reporter of Shanghai Securities News learned that some foreign trade enterprises, such as cotton yarn export and garment export, have received some reflow orders. Overall, the textile and garment industry in the second half of the recovery signs obvious. In addition to garment exports, which were up for the first time in August, orders for textiles and clothing have also exploded recently. Industry boom also transmits to the upstream market, cotton, polyester, viscose and other textile raw materials commodities have also risen.


(Subheading) Overseas textile orders are diverted to China


"Recently, due to the epidemic in India, the price of cotton yarn textiles is rising, and the order has increased a lot. We have received a lot of re-orders from India, which has increased by about 30%." Jiangxi Xinyu Wanda Line co., LTD., the business of the person in charge of the Shanghai Securities news, said.


According to the head of a textile export company in Shanghai, it is true that some orders from Southeast Asian countries have been diverted to domestic production lines recently. "As countries such as Myanmar and Cambodia have taken measures to prevent the epidemic, some European and American customers are actively contacting us and shifting their orders to China."


It is understood that the transfer of orders have cotton yarn and other textile raw materials, but also towels, bed sheets and other simple categories, mainly to supply the needs of supermarkets. Previously, the layout of Chinese enterprises in Southeast Asia production line orders are also partially shifted to domestic production.


India's textile production occupies an important place in the world. India is the world's largest producer of cotton and jute, accounting for 22 per cent of yarn production, according to public records. Affected by the epidemic, India's cotton processing and export, cotton yarn production and other industrial chains have been severely impacted.


The head of another large garment exporter in Shanghai told The Shanghai Securities News that India's relevant production capacity may be only about 30 percent at present, with customers diverting about 20 to 30 percent of garment orders to Bangladesh and China. The company has also received knit sweater backflow orders from Bangladesh.


Clothing exports are up for the first time in August


According to a number of industry insiders, the improvement in textile orders is partly due to the demand from the domestic "Double 11 shopping festival", on the other hand, the increase in foreign trade orders, including the transfer of some orders from India to China. In addition, the expectation of cold winter has also increased the market's expectation of winter clothing demand.


However, some experts point out that it is not long-term demand from India that will be diverted to The domestic market. Moreover, the textile industry as a whole is still facing price factors such as rising raw materials and RMB appreciation, and the total volume of orders for the whole year may still decline.


But there is no denying that the recent textile and garment exports are picking up signs. Many persons in charge of textile export enterprises told reporters that since July, the external demand orders have suddenly erupted, the quantity of inquiry and taking goods has increased, and some enterprises' orders are scheduled to January next year.


The head of Shanghai garment export business said that the decline in the company's garment exports is narrowing. Since August, the demand for restocking in the European and American markets has increased. In September, many customers asked for restocking orders, asking if other customers had cancelled their inventories.


Official statistics also show that in August, China's textile exports reached 14.72 billion US dollars, up 47% year on year. Garment exports reached us $16.21 billion, up 3.2% year on year, marking the first monthly positive growth this year.


(Sub-title) Cotton, polyester, viscose and other raw material commodities surged


With the overall recovery of the textile and clothing industry, the market demand tends to be strong, cotton, polyester, viscate and other raw material commodity prices have appeared a wave of strong trend.


The average domestic cotton price was rmb14,263.08 a tonne as of October 15, up 12 per cent since early September and the highest since August last year, according to Wind. Futures market, zheng cotton main contract this week up more than 8%.


Fang Huiling, senior agricultural products analyst at the Tse Derivatives Research Institute, said the current cotton market demand is improving, with orders rising significantly month-on-month. Textile enterprises products low inventory coupled with a rapid rebound in downstream demand, creating the current hot market. In addition, the same as the raw materials of cotton viscose staple fiber, polyester staple fiber, etc. Also appeared an extremely hot market. (after)