The prosperity index of May 2021 closed at 950.70 points, 6.28% higher than that of last period. This month, new forms of trade drove the exports ofKeqiao, and innovative products from enterprises seized foreign markets, leading to a slight increase in the foreign trade prosperity index of this period; high-end textile manufacturing improved the industrial standard, and digital intelligence led the way to strengthen the bidding strength of enterprises, which led to a slight increase in the foreign trade price index of this period.
Summer factors affected foreign trade prosperity
Due to the slow growth of international consumer demand, the fierce competition in textiles in Southeast Asia, and the ever-increasing trade barriers in textiles from European and American countries, domestic textile companies have encountered obstacles in their exports. Although the country has recently introduced some policies and measures on exports, textile companies still need to face various problems according to their own business conditions. As the summer enters, textile exports will be complementary and weak, and foreign trade prosperity indicators will decline slightly in June.
Due to the weakening of the economic environment in the rigid demand of some international markets, the foreign trade situation began to show a slight improvement in May, driving the production scale of foreign trade production enterprises to increase. The sustainability of the improvement of such prosperous indicators is subject to many interference factors in the international market, and there are uncertainties in market expectations in the second half of the year. Under this background, foreign trade production enterprises need to use their own resources and market advantages to adjust product structure and transform breakthrough changes in the field of foreign trade into a sustainable self-development model. Especially in June, it is the adjustment period for product replacement in the market. If corresponding changes can be made to different customers in the product structure, good development opportunities will be obtained in the second half of the year.
Many factors reduced foreign trade prices
Foreign trade prices fell slightly in May compared with the previous period, mainly due to the restrictions on the export of some low-priced products. At the same time, the sluggish foreign trade exports also brought pressure on foreign trade prices. In addition, judging from the export exchange rate in May, the depreciation of the renminbi further reduced the export price of foreign trade. As the exchange rate continues to fall in the future, the foreign trade price will continue to fall in the later period.
With the impact of a series of factors such as foreign exchange fluctuations and foreign economic changes, the foreign trade trend in China Textile City is as estimated at the beginning of the year, market demand is sluggish, and foreign merchants’ purchasing strategies have also been adjusted. The number of high-quality and small-batch products is gradually increasing. The price of this category has fallen, and the number of shipments has slightly decreased compared with the same period last year. With the change of seasons, low-priced and low-grade textile products in the summer market will occupy the mainstream of market sales. The export of high-end products will gradually slow down in the future. The sales of some conventional and characteristic varieties will be restricted. At the same time, foreign merchants will find samples and samples. With a substantial increase in products, the export market will enter a period of seasonal change and product adjustment.