China Technical Textile Industry Business Situation Analysis of the first three quarters (12/02/2009)

Updated: 12/2/2009 10:10:00 AM

1. Statistics from the National Statistics Bureau
Accumulated industry output value of above-scale nonwoven industry companies reached up to 29 billion RMB for the first eight months of 2009, increased by 7.97% as contrast to 2008. New products valued 1.4 billion RMB, down by 0.55% and overall asset valued 2482 billion RMB, increased by 10.15%. Consolidated sales income reached up to 27.4 billion RMB, increased by 7.03% and exported value dropped by 7.87% as contrast to 2008, reaching 4.5 billion RMB.
Overall production output of nonwoven fabrics accumulated to 814 thousand tons for the first eight months of 2009 which has increased by 25.86% compared with the same time period of last year. Provinces include Zhejiang, Shandong, Guangdong, Jiangsu, Fujian, Liaoning are the major producing areas. Tianjin, Shandong, Heilongjiang, Jiangxi, Jiangsu, Zhejiang, Hunan all have witnessed fast increase during the first eight months while Shanghai, Hubei have indicated negative growth. Gross profit margin and net profit margin all have increased slightly as contrast to last year reaching 13.67% and 4.7% respectively.

2. General situation
Both technical textile industry and nonwoven fabrics industry have been affected by the global economic downturn. But thanks to the macroeconomic stimulus policies from the central government, positive tendency gradually gained momentum. Domestic market exerted more and more function to the recovery of the whole industry and became an indispensable element to the economic recovery of China and even to other countries of the world.
Affected by the inclination of national infrastructure investment reinforcement and the policy adjustment of some trading companies, technical textile industry indicated obvious upturning momentum since March this year. As contrast to the output of 2008, the first eight months of 2009 have seen 25.86% of increase.
Investment
Nonwoven industry investment kept climbing up for the first eight months. An estimated 4.3 billion RMB was invested in nonwoven fabrics industry, increased by 30.38% as contrast to last year. 190 programs were under construction, increased by 33.8%. 133 new programs were launched, increased by 41.49% year-on-year. Up until August, 59 programs were successfully wrapped up, increased by 96.67%, accounting for 31% of overall programs.
Import and Export
International market demand situation is more severe than 2008 and kept declining. Importation of technical fabrics dropped by 22.78% and exportation only increased by 0.53%. Exportation situations picked up slightly compared with the second half year of 2008. Nonwoven fabrics and coating fabrics all have seen increasing momentum. After the first negative exportation growth of year beginning, nonwoven fabrics indicated growing momentum thereafter with export quantity increase by 0.83% but export value dropped by 4.27%.

3. Analysis
(1)Companies that possess complete industrial chain and fast product adjustment capabilities could maintain a certain quantity growth in 2009.
(2)Companies that possess excellent research and development capabilities and comparatively remarkable market adaptability illustrated strong vitality and could buffer the repercussion of financial crisis.
(3)Companies that already secured high-end markets could retain better profit margin. High-temperature filter bag manufacturing companies, for instance, use special fibers like P84, aramid fiber, PPS as raw material and could minimize the influence of economic downturn by securing stable market quota.
(4)Companies that directly influenced by national policy and market demand maintained good running situation. From January to September, 9.66 million cars were sold in China, increased by 34% compared with last year making China the largest car consumption country in the world. September alone has witnessed 1.33 million cars sold out, increased by an astounding 78% as contrast to last year hitting another history record. Due to the national policy orientation of infrastructure investment reinforcement, geotextile composite materials, filtering materials as well as automobile textiles all expect a substantially large market demand ahead. Affected by the current influenza H1N1, many companies that produce health and medical textiles such as clinical masks, protective clothing all received sufficient orders with good prices.

4. Import and export table for the first eight months

Table 1. Import and export table of nonwoven fabrics and technical textiles

Code

Products

Import quantity (Ton)

Quantity variation

Import value (Million dollars)

Value variation