Recovery in demand in the industrial market, with non-woven fabric production increasing by 11.4% year-on-year

In the first half of 2024, the complexity and uncertainty of the external environment have significantly increased, and domestic structural adjustments have continued to deepen, bringing new challenges. However, factors such as the sustained release of macroeconomic policy effects, the recovery of external demand, and the accelerated development of new quality productivity have also formed new support. The market demand of China's industrial textile industry has generally recovered. The impact of the sharp fluctuations in demand caused by the COVID-19 has basically subsided. The growth rate of industrial added value of the industry has returned to the upward channel since the beginning of 2023. However, the uncertainty of demand in some application fields and various potential risks affect the current development of the industry and expectations for the future. According to the association's research, the prosperity index of China's industrial textile industry in the first half of 2024 is 67.1, which is significantly higher than the same period in 2023 (51.7)

According to the association's research on member enterprises, the market demand for industrial textiles in the first half of 2024 has significantly recovered, with domestic and foreign order indices reaching 57.5 and 69.4 respectively, showing a significant rebound compared to the same period in 2023. From a sectoral perspective, the domestic demand for medical and hygiene textiles, specialty textiles, and thread products continues to recover, while the international market demand for filtration and separation textiles, non-woven fabrics , medical nonwoven fabric and hygiene nonwoven fabric shows clear signs of recovery.

Affected by the high base brought by epidemic prevention materials, the operating income and total profit of China's industrial textile industry have been in a declining range from 2022 to 2023. In the first half of 2024, driven by demand and the easing of epidemic factors, the industry's operating revenue and total profit increased by 6.4% and 24.7% respectively year-on-year, entering a new growth channel. According to data from the National Bureau of Statistics, the industry's operating profit margin for the first half of 2024 was 3.9%, an increase of 0.6 percentage points year-on-year. The profitability of enterprises has improved, but there is still a significant gap compared to before the epidemic. According to the association's research, the order situation of enterprises in the first half of 2024 is generally better than that in 2023, but due to fierce competition in the mid to low end market, there is greater downward pressure on product prices; Some companies that focus on segmented and high-end markets have stated that functional and differentiated products can still maintain a certain level of profitability.

Looking ahead to the whole year, with the continuous accumulation of positive factors and favorable conditions in China's economic operation, and the steady recovery of international trade growth, it is expected that China's industrial textile industry will maintain stable growth in the first half of the year, and the industry's profitability is expected to continue to improve.

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Post time: Aug-26-2024