Since 2022, the domestic and international situation has been complicated and changeable. The expected triple pressure and the two unexpected shocks have caused a great impact on the stable operation of the industrial textile industry. In the first quarter, the industry's industrial added value returned to positive growth, but the industry's economy, production, and demand recovered slowly; in the second quarter, driven by the steady growth policy, the industry's industrial added value continued to grow, the decline in major economic indicators continued to narrow, and production and demand gradually decreased. Recovery, but the downward pressure on the industry still exists. In the first half of 2022, the prosperity index of the industrial textile industry is 46.9, which is in the contraction range.

1. Domestic demand needs to be picked up urgently, and the utilization rate of production capacity has picked up

In the first half of this year, the domestic and international market demand declined to varying degrees. The domestic and international market demand indices were 38.8 and 35.1, respectively. Compared with January to April (39.7 and 33.2), the domestic market demand declined slightly, and the international market demand rebounded. In terms of different fields, the domestic market for structural enhancement textiles is strong, and the domestic market demand index of 68.8 is the highest in the industry; the international market has relatively high demand for transportation textiles, geotextiles and construction textiles. were 53.9 and 52.8. In terms of orders on hand, 26.4% of the surveyed companies have relatively stable and continuous sources of orders or the orders on hand can support production for more than three months, while 34.4% of the respondents have orders on hand that can only support the company for less than one month. production. According to the size of the enterprise, the orders on hand of large and medium-sized enterprises are more stable and sufficient, and can support production for a longer time; while the orders on hand of small and micro enterprises can only support production within one month or even less than half a month. Despite the sluggish market demand, with the effect of the policy of ensuring smooth flow of logistics, the delivery cycle of enterprises has gradually shortened, and the operating rate of the industry has generally increased. According to the data of the National Bureau of Statistics, from January to June 2022, the output of nonwoven fabrics of enterprises above designated size decreased by 1.9% year-on-year, but the decline was narrowing month by month; affected by the decline in automobile production and sales, the output of cord fabrics decreased by 4.8% year-on-year.

2. The industry is under pressure, and the high-cost pattern continues

In the first half of 2022, the industrial added value of enterprises above designated size in my country's industrial textile industry showed a steady rebound. According to the data of the National Bureau of Statistics, the operating income of enterprises above designated size in the industry is basically the same as that of the same period in 2021, the total profit decreased by 16.8% year-on-year, and the profit margin was 4.9%, a year-on-year decrease of 0.9 percentage points. Compared with the same period in 2021, the increase in operating costs is the main reason for the decline in total industry profits, with operating income almost returning to the same period. According to data from the National Bureau of Statistics, while the operating income of the industrial textile industry fell by 0.9% year-on-year, the industry's operating cost increased by 0.3% year-on-year, and the industry's gross profit margin decreased by 1.0 percentage points year-on-year. In the first half of the year, the industry's raw material cost index and labor cost index reached 82.4 and 78.3, respectively, which were up compared with the same period in 2021 (79.3 and 76.3). Due to the pressure of competition, the increase in operating costs has put pressure on the industry enterprises to bear the pressure of price difference. In the first half of the year, the industry product price index was only 40.6, which was in the contraction range. More than 80% of the interviewed enterprises said that the prices of main products remained unchanged or even decreased.

From January to June, the operating income and total profit of nonwovens enterprises above designated size decreased by 4.6% and 36.1% year-on-year, respectively, and the profit margin was 4.2%, a year-on-year decrease of 2.1 percentage points; Operating income and total profit increased by 1.3% and 9.0% year-on-year respectively, and the profit margin was 5.1%, an increase of 0.4 percentage points year-on-year; the operating income and total profit of enterprises above the scale of textile belts and cord fabrics decreased by 2.5% and 6.2% year-on-year respectively. The growth rate was 5.4%, a year-on-year decrease of 0.2 percentage points; the awning and canvas industries developed well, the operating income and total profit of enterprises above designated size increased by 11.4% and 23.9% year-on-year respectively, and the profit rate was 6.1%, an increase of 0.6 percentage points year-on-year; , The operating income and total profit of other industrial textile enterprises above designated size where geotextiles are located both recovered to positive growth, increasing by 1.6% and 0.8% year-on-year respectively, with a profit margin of 5.3%, basically the same as the same period in 2021.

3. Foreign trade shows a recovery trend, and the decline in exports continues to narrow

According to China Customs data, from January to June 2022, the export value of my country's industrial textile industry (statistical data of customs 8-digit HS code) was 23.25 billion US dollars, a year-on-year decrease of 13.6%, and the decline has narrowed for 5 consecutive months since February. ; From January to June, the industry import value (the statistics of the customs 8-digit HS code) was 3.25 billion US dollars, a year-on-year decrease of 14.2%. From the perspective of main export products, the booming overseas "camping economy" has made felt cloth/tent the largest export product in the industry, with an export value of US$2.67 billion, a year-on-year increase of 17.3%; industrial coated fabrics, cords (cables) belts The export value of traditional products such as textiles, canvas, and leather base cloth increased by 28.0%, 16.2%, 31.7%, and 17.9% year-on-year respectively. The export of non-woven fabrics and related products showed different trends. The export of coil materials was 2.03 billion US dollars, down 15.3% year-on-year, and the export volume was 612,000 tons, down 16.6% year-on-year; masks and chemical fiber non-woven fabric protective clothing (including medical protective clothing) The export value of disposable hygiene products decreased by 68.2% and 60.2% year-on-year respectively; the export of disposable hygiene products was 1.37 billion US dollars, a year-on-year increase of 16.5%; the export value of wet wipes was 540 million US dollars, a year-on-year decrease of 17.4%

4. Annual Development Forecast

At present, the environment at home and abroad is becoming more severe and complex, and the industry is facing many risks and challenges to stabilize its growth. Enterprises are generally cautious about the expectations of the industry's full-year operation. Among them, textiles for structural enhancement, textiles for sails, and textiles for transportation are relatively optimistic about the development of the whole year. In the second half of 2022, as a series of policies and measures such as tax reduction and fee reduction, strengthening financial support, continuously optimizing the business environment, and strengthening energy and raw material supply and price stabilization continue to work, it is expected that the industry's production will resume growth throughout the year. ; The operating income of the industry will re-enter the rising channel, and the decline in total profits will be further narrowed and is expected to recover to the level of the same period in 2021; the pace of industry investment will slow down, and investment in new production capacity will become more rational; the external demand market will continue to repair, traditional products Exports will continue the good momentum.