Recent turnover in China Textile City

During traditional dull season in Jul, on past performance, cotton grey fabric market was expected to go flat. As expected, turnover of fabric China Textile City gradually dropped recently.

As of July 15, 2021, the turnover in China Textile City has shown a recovery over last year. However, then it started to fall in evidence, much worse than that in same period of 2018 and 2019. The turnover grew by 49.65% compared to 2020 but recorded 12.1% and 8.11% falls compared with 2018 and 2019.

In 2020, the turnover of fabric China Textile City shrank sharply due to the impact of Covid-19 pandemic, while in 2021, with the gradual control of the pandemic, the monthly trading recovered to varying degrees in the first half of this year. Due to the strong trading activity before the Chinese New Year (CNY) in 2021, the turnover in Jan 2021 was 2.02% and 35.75% higher than that in same period of 2018 and 2019 respectively. In Feb 2021, due to the Spring Festival, the holidays of mills showed divergence, so the turnover changed greatly and the turnover in 2020 dropped by 11.71% compared with 2018 but rose by 16.51% compared with 2019. In Mar-Jun 2021, the market trading in the China Textile City improved but was still lower than that in same period of 2018 and 2018. Although it recovered compared with that in 2020, the yearly growth gradually narrowed. In early-Jul 2021, the trading suffered different degrees of decline compared with the past three years.

Three reasons led to the decline of the turnover in China Textile City.

One was fewer merchants in China textile city. Due to the expiration of the lease and pessimistic mood towards the market in the second half of the year, about 1/4 of the mills closed down. The opening time will depend on the future market.

Another related to weak export orders in June and July despite the low proportion of fabric export in China textile city, which had a certain impact on the trading.

A third involved preparation of goods of some merchants in the first half of 2021 who expected that the fabrics prices will continue to rise in peak season in Sept, overdrawing some of the demand in the second half.

Future turnover in China textile city

With deepening slack season, it is expected that the market will continue to be tepid from late-July to early-August, and the fabric turnover will be stable to weak. By mid-August, the market will warm up, and the fabric turnover of China textile city will gradually recover.