The foreign trade market kept stable, new products increased the foreign trade prosperity

date2021-01-05 author
The 202012 foreign trade prosperity index “China • Keqiao Textile Index” closed at 968.74 points, increased by 6.25% MOM; Foreign trade index closed at 169.40 points, decreased by 2.09% MOM.
This month, the trade friction increased the international demands, which pulled the foreign trade prosperity up. The industrial upgrading improved the productions and innovation brought profit to enterprises, which pulled the foreign trade price index up.  
The foreign trade market kept stable
In January, the export market of textiles increased; many foreign trade enterprises completed orders, but not many orders for autumn products. It forced foreign trade producers to reduce their existing production scale and production capacity. It is expected that, under the downturn in export demand, the existing production scale will gradually decrease, and the production prosperity index will edge down.
The smooth operation of foreign trade in June has eased the market for foreign trade production enterprises at the beginning of the year. However, some production enterprises above the scale have reduced their production scale in July, and their production capacity has been weakened and they are in a marketing trough. In Oct., with the market demand turning to the autumn new varieties of fabrics, many foreign trade production companies have done a good job of preparing for the autumn varieties, laying a solid foundation for the characteristics of the production process and marketing channels for the autumn varieties, and updating the sample style at any time as the contract changes. Adapt to the needs of the international market. It can be expected that during the month of September, the indicator of the growth of foreign trade production will be slowly increased under the joint impetus of production companies.
New products increased the foreign trade prosperity
    With the off-season of the market, foreign trade prices continued to show a downward trend in Jan. The downturn of foreign trade situation comes from the competition in the international market on the one hand, and the other part is due to the continuous low volatility of raw materials prices in the upper stream of textiles. From now on, after entering July, the price of raw materials without benefits, will still maintain a low situation, and the foreign trade prices of textile will have a negative effect.
Since last year, oil prices in the international market is low, the domestic oil-based chemical fiber textile prices have been difficult to rebound, and the international market cotton price competition, domestic cotton prices have been in a downward trend. Chemical fiber and cotton, as the most important raw materials for textiles, have always been the leading factors in the export price of textiles. The long-term downturn in raw materials prices has adversely affected the price of the international textile market, thus pulling down the domestic textile export prices. In January against the background of insufficient international demand, the prices of raw materials will continue to be depressed, which will put pressure on foreign trade export prices and pull the foreign trade index up slightly.