Apparel / Textiles & Accessories

"Delta" did not withdraw, and the mutant strain of "Lambda" began to "emerge"

US media reported that with the spread of the epidemic, there have been thousands of cases of infection with the "lamda" strain first reported in Peru in December last year. Some experts said that the "lambda" strain is also a variant strain that they are paying close attention to.

According to the website of the Japan Broadcasting Association, a woman was found to be infected with a new strain of the virus at the quarantine station at Tokyo Haneda Airport in August and July. It has been confirmed to be infected with a mutant strain of Lambda. This is the first confirmed case of infection with a mutant strain of lambda in Japan. Researchers from the University of Tokyo and Osaka University in Japan said that the spike protein of the Lambda variant is highly infectious.

The new crown epidemic hits Vietnam’s garment industry directly, over 90% of the supply chain will be destroyed

The Vietnam Textile and Apparel Association estimates that the new round of the epidemic has temporarily closed 30% to 35% of Vietnam's garment factories, and more than 90% of the Vietnamese garment industry's supply chain has been disrupted. Even in the most optimistic scenario, the size of Vietnam's garment exports this year can only reach US$32 billion to US$33 billion, far below the target of US$39 billion.

In addition, the vaccination rate for workers in this industry is "still very low." It is reported that only about 1% of the country’s 98 million people are fully vaccinated.

Affected by the spread of epidemics across the country, land transportation has skyrocketed

Affected by the spread of the epidemic across the country, 91 high-speed toll stations in Jiangsu were temporarily closed, including 4 in Wuxi, 6 in Xuzhou, and 23 in Yangzhou; 26 ordinary national and provincial highways in Jiangsu Province were temporarily closed in one or two directions. It is understood that transportation costs have risen by about 15%, and in some places even by about 60%, but even so, it is still difficult to find drivers.

The demand for replenishment and the return of orders are both boosted, and the strong demand for textiles and clothing is restored

According to the survey of terminal garment processing factories from March to April, the peak season of Golden Three Silver Four is mainly due to the good orders of large garment factories, while the orders of small and medium-sized enterprises are poor. However, after July, as European and American countries gradually liberalized their quarantine policies, overseas textile and apparel demand began to kick in, coupled with the outbreak of the Southeast Asian epidemic, orders returned to the country again. At present, all kinds of garment enterprises in Jiangsu and Zhejiang are basically starting at full capacity. With the release of demand from Europe and the United States and the spread of the epidemic in Southeast Asia, the number of orders received by my country is expected to further increase.

At present, the expansion of the industrial chain is mainly based on the profit transfer from the polyester link to PTA, which is in the middle and early stages of expansion. Since July, the industry chain has improved, and the profit of upstream raw materials PTA and ethylene glycol has increased significantly compared with polyester staple fiber. In the same month, the PTA processing difference climbed from 568 yuan/ton to 770 yuan/ton, the profit of naphtha-to-ethylene glycol from the outer plate improved from -60 US dollars/ton to -15 US dollars/ton, while the cash flow of polyester staple fiber was not satisfactory. , Weakened from -49 yuan/ton to -300 yuan/ton, continue to make profit to the PTA link. Starting from the fourth quarter of 2020, the continued high operating rate coupled with the impact of the recycling market, the polyester staple fiber market has ample supply, and the current September contract delivery pressure cannot be ignored, so the staple fiber valuation is low. However, the third quarter is the peak season for polyester consumption. Boosted by the demand for replenishment in Europe and the United States and the return of orders from Southeast Asia, the profit of polyester staple fiber is expected to increase.

The financial crisis occurred in 2008, and the demand for textile and clothing shrank in 2009, but 2010 is the year of textile and clothing. 2021 is expected to be similar to 2010, and we are optimistic about the polyester industry chain market in the second half of the year. The time node will be at the end of the third quarter and the beginning of the fourth quarter.