What is the impact of heavy rain in Henan on textile industry?

The central Chinese city of Zhengzhou, the provincial capital of central China's Henan Province, has been lashed by record rainstorms, causing severe waterlogging, traffic disruptions, and power outages. More than 144,660 residents have been affected by torrential rains in central China's Henan Province since July 16, the provincial flood control and drought relief headquarters said Tuesday. A total of 32 large and medium-sized reservoirs have seen water levels rise above the alert level after torrential rains battered most parts of the province. About 20,000 hectares area of crops was affected by and 3,000 hectares inundated area was hit by heavy rains. Both Henan provincial and Zhengzhou municipal meteorological bureaus have raised the emergency response for meteorological disasters to level I.

After the communication with manufacturers and relevant sources, the latest information is as follows.

Nylon: Pingmei Shenma Group (CPL and nylon 6 chip producer), located in Pingdignshan, Henan province, is not affected by the heavy rain fall, and is now running steadily and the logistic are kept normal so far.

Polyester: the PSF production of Sinopec Luoyang and Luoyang Shihua runs normally, but the transportation is affected by the downpour. The rain is forecast to stop today and the transportation may improve later.

Viscose: local VFY and lyocell fiber producers are running normally, while the production of some rayon yarn mills is affected, leading to minor decline of operating rate.

PP: The rainstorm has no impact on the PP production of Sinopec Luoyang PC, but the delivery transportation has been affected.

Spandex: Feedstock plant Henan Energy and Xinxiang Chemical Fiber's spandex unit sustain normal production now, while the logistics are restricted as the expressway is blocked.

Zhengzhou Commodity Exchange: the operation is normal.

Judging from preliminary communication, Zhengzhou was the most seriously affected area, and other areas also suffered heavy rainfall. However, production remained stable temporarily, but the transportation and shipment were affected.

From the perspective of capacity distribution, the impact of the rainfall on cotton textile industry attracted the most attention. As the top five provinces of domestic spinning capacity, many local cotton spinning mills in Henan got a certain influence, involving tens of millions of spindles. In addition, cotton storehouse in Zhengzhou, which has seen tight supply this year, may also be affected. However, the actual impact still needs to be evaluated. For example, the proportion of spinning in Zhengzhou is not too high.

(According to CCFGroup, textile mills in the surrounding areas of Zhengzhou had little influence on production, but transportation had some negative effect. The impact of cotton storehouse was limited for the time being and will be followed up further.)

The heavy rainfall will last until the night of July 21 and will still be concentrated in Northwest and central Henan, with precipitation of 100 to 250 mm and local 300 to 400 mm, Henan Meteorological Station chief forecaster Zhang Ning said. On Jul 22 to 26, there will be no obvious large-scale heavy rainfall weather but scattered thunderstorm weather in Henan.

In addition, it is noteworthy that in addition to the direct impact of the current rainstorm, there will be a series of problems such as flood discharge, risks such as power failure and landslide in the surrounding areas, as well as the impact of logistics and transportation, which need follow-up attention.