The operation index of the textile industry in Jiangsu Province, which is recently released by the provincial textile industry association together with www.168tex.com, China Dieshiqiao Market Index Release Center and the Administrative Committee of Changshu Garment Town, shows that the local textile industry is still under great downward pressure, but there are some highlights.

www.168tex.com publishes index based on the silk and chemical fiber fabric industry in Shengze, Wujiang City in Jiangsu Province. Over the past year, the raw material index dropped near 2,000 points year-on-year, the industry has been undergoing profound restructuring and the process of “survive the fittest” accelerated. Related monitor shows that in August, the prices of bulk textile raw materials such as PTA dropped significantly from a year ago, domestic demand was feeble and export declined, and upper-stream producers began to suffer the difficulties already suffered by downstream producers. Moreover, due to capital chain problem and high inventory, many textile enterprises in Jiangsu and Zhejiang provinces have shut down. Guo Qibo, general manager of www.168tex.com said frankly that some bosses are gambling in the capital market and their capital shrunk dramatically after the big ups and downs of the stock market and the resulting negative effect has spread to the manufacturing industry.

The home-textiles sector is slightly better than the garment sector, though its average production prosperity index declined 2.83% year-on-year. The export of home-textiles in the first-half year is not satisfying, but domestic sales have become new growth point. Up to now, half of the enterprises in Dieshiqiao Home-textiles Market have set up online sale platform. The daily average deliveries reached 53,000 pieces in July, up 30% year-on-year. Yang Jianda, director of Dieshiqiao Market Index Release Center said that the export of home-textiles from Jiangsu Province in the first half of this year maintained the third place in China in terms of both quantity and value. The export rose 0.47% in value term and 3.08% in quantity term, but the unit export price dropped 2.84%, which means the profit margin of enterprises has been further squeezed.

Source: China Textile Leader Express