Industry Data: Operation Analysis Of Industrial Textile Industry In The First Three Quarters

In the first three quarters of 2024, the global economy has a strong growth momentum, but there are still some problems such as inflationary pressure, trade tensions and tighter investment environment; In general, China's economic operation has progressed steadily, high-quality development has been steadily promoted, and positive factors have accumulated and increased. The economic operation of China's industrial textile industry shows a recovery growth trend, the market demand continues to recover, and the overall industry export is in the recovery range. According to the survey of the Association, the prosperity index of China's industrial textile industry in the first three quarters of 2024 is 68.7, 1.6 percentage points higher than that in the first half of the year (Figure 1).

Data source: China Industrial Textile Industry Association

Figure 1 Prosperity index of industrial textile industry

1、 Continuous recovery of demand for key products

Since 2024, the output of nonwovens has picked up well. According to the data of the National Bureau of Statistics, the output of nonwovens of enterprises above designated size from January to September 2024 increased by 10.1% year on year, and the monthly average output continued to increase compared with the first half of the year. With the gradual warming of the passenger car market, the cord fabric production returned to double-digit growth after experiencing fluctuations in the first half of the year. From January to September, the cord fabric production of enterprises above designated size increased by 11.8% year on year (Figure 2).

Data source: National Bureau of Statistics

Figure 2 Growth of nonwoven fabric and cord fabric production of enterprises above designated size in China

2、 Several economic indicators rebounded

According to the data of the National Bureau of Statistics, in the first three quarters of 2024, the operating income and total profit of enterprises above designated size in the industrial textile industry increased by 6.1% and 16.4% year on year respectively; According to the calculation of China Industrial Textile Industry Association, the operating profit margin of enterprises above the industrial scale was 3.8%, up 0.3 percentage points year on year; The industry's loss area was 23.6%, 1.6 percentage points lower than that in the first half of the year. Since 2024, under the influence of low base effect, recovery of domestic and foreign market demand and other factors, the main economic efficiency indicators of the industry have continued to recover, but still face challenges such as fluctuations in raw material prices, insufficient demand support, and fierce market competition.

In terms of fields, from January to September, the operating income and total profit of nonwoven enterprises above designated size increased by 3.5% and 28.5% respectively year on year, and the operating profit margin was 2.7%, up 0.5 percentage point year on year; The business income and total profit of enterprises above rope, cable and cable scale increased by 14.8% and 46.5% year on year respectively, ranking first in the industry. The operating profit margin was 3%, up 0.6 percentage points year on year; The operating income and total profit of enterprises above designated size of textile belt and cord fabric increased by 9.9% and 4.2% respectively year on year, and the operating profit margin was 2.9%, down 0.2 percentage points year on year; The operating income of enterprises above the scale of awning and canvas increased slightly by 0.5% year on year, the total profit decreased by 10.8% year on year, and the operating profit margin was 4.7%, down 0.6 percentage points year on year; The operating income and total profit of other industrial textile enterprises above designated size where filter and geotextile are located increased by 10.6% and 20.9% year on year respectively, and the operating profit margin of 6.1% is the highest level in the industry (Table 1).

Table 1 Main economic indicators of industrial textile industry operation from January to September 2024 (above scale)

Data source: National Bureau of Statistics, China Industrial Textile Industry Association

In terms of listed companies, in the first three quarters of 2024, the operating revenue of 30 listed companies in the industrial textile industry increased by 7.4% year on year, and the total profit decreased by 21.8% year on year. While the sales revenue kept growing, the profitability of listed companies in the industry was facing challenges. Among them, 14 listed companies achieved double growth in operating income and total profit, and 4 listed companies were in a loss state; The listed companies of textiles for transportation and synthetic leather have a good momentum of development, while the listed companies of sanitary textiles have a large margin of decline in profits.

3、 Export continues the trend of "volume increase and price decrease"

According to Chinese customs data (customs 8-digit HS code statistics), the export volume of China's industrial textile industry in the first three quarters of 2024 reached 30.47 billion US dollars, an increase of 4.1% year on year, 0.8 percentage points higher than that in the second quarter (Table 2); The import volume of the industry was 3.74 billion US dollars, down 4.8% year on year, and the decline continued to narrow compared with the second quarter.

In the first three quarters of 2024, the export of key products of China's industrial textile industry (chapters 56 and 59) to major markets has maintained a high growth rate. For example, the export to Vietnam and the United States increased by 19.9% and 11.4% respectively, and the export to Cambodia increased by 27.7%; However, exports to India and Russia declined by 7.8% and 10.1% respectively.

From the perspective of main export products, the export volume of key export products such as industrial coated fabrics, felt/tents, non-woven fabrics, diapers sanitary napkins, rope and cable belts, canvas, industrial glass fiber products, etc., has maintained a certain growth in the first three quarters of 2024; The export volume of wiping products (dry and wet wipes), textiles for structural reinforcement and other industrial textiles maintained a high growth rate; Overseas demand for disposable sanitary products such as diapers and sanitary napkins has shrunk. Although the export volume continues to grow, the growth rate has decreased by 10 percentage points compared with the same period in 2023.

Table 2 Exports of Industrial Textiles and Main Products from January to September 2024

Data source: China Customs, China Industrial Textiles Industry Association

(Source: China Industrial Textile Industry Association)