2023 National Textile Raw Materials Information Exchange Conference
and the 40th Zhangjiagang Wool Salon of the Zhangjiagang Wool Merchants Association
Grandly Convened in Luoyang, Henan
The "2023 National Textile Raw Materials Information Exchange Conference and the 40th Zhangjiagang Wool Salon of the Zhangjiagang Wool Merchants Association," jointly organized by Zhangjiagang Wool Merchants Association, Beijing Meixi United Trading Co., Ltd., Zhangjiagang Yangzi Fine Combing Wool Top Co., Ltd., Jiangsu Jubai Wool Products Co., Ltd., Tianjin Tianyang Textile Co., Ltd., Zhejiang Yongjin Biotechnology Co., Ltd., Jiaozuo Longfeng Gelemei Co., Ltd., Guangshan Bai Shark Needle Cloth Co., Ltd., and Wuxi Changyang Wool Washing Co., Ltd., was grandly held in Luoyang, Henan Province from July 20th to 24th, 2023! More than 200 representatives from wool textile raw material related enterprises from all over the country attended the conference.
2023 National Textile Raw Materials Information Exchange Conference
Opening Remarks by the Organizing Committee
On the morning of July 21st, at 8:20, Mr. Hu Guohu, General Manager of Beijing Meixi United Trading Co., Ltd., began to preside over the meeting. Mr. Hu Guohu first invited all representatives to stand and sing the national anthem and declared the opening of the conference!
Dr. Ji Qianlong, Chairman of the Zhangjiagang Wool Merchants Association and Chairman of Zhangjiagang Yangzi Fine Combing Wool Top Co., Ltd., delivered the welcome speech.
Chairman Ji extended his warm congratulations on the grand opening of the "2023 National Textile Raw Materials Information Exchange Conference and the 40th Zhangjiagang Wool Salon" in Luoyang, an ancient capital with a 5000-year history! He expressed a warm welcome to all the guests! He expressed his sincere gratitude to Mr. Hu Guohu, General Manager of Beijing Meixi United Trading Co., Ltd., and his team for their meticulous preparations, and to all the co-organizing units for their strong support!
In his speech, Chairman Ji said that the annual National Textile Raw Materials Information Exchange Conference has been held since 1997, and this year marks its 27th anniversary. Except for the years when it was not held due to SARS in 2003 and COVID-19 in 2020 and 2022, a total of 24 conferences, including this Luoyang conference, have been successfully held thanks to the unremitting efforts of General Manager Hu Guohu! Since its establishment in 2009, the Wool Merchants Association has been working closely with Beijing Meixi and related co-organizing units to jointly hold the annual conferences. The active participation of everyone is a great support to Beijing Meixi and the Wool Merchants Association, and it also reflects the urgent expectation for market recovery under the current relatively sluggish wool market! He hopes that through this conference, everyone can conduct extensive and in-depth market analysis, exchange market information, deepen cooperation, enhance friendship, and strive to promote the wool industry towards a bright future!
Chairman Ji said that the convening of this National Textile Raw Materials Information Exchange Conference and Wool Salon in Luoyang coincides with the opening year after the 20th National Congress of the Communist Party of China, and it is also a crucial year for economic recovery after the epidemic. The guests attending the conference come from various links in the wool industry chain. Under the current circumstances of international trade disruptions, insufficient domestic demand, and relatively difficult conditions in the wool textile industry, everyone is looking forward to policy optimization, accelerated production, and market recovery this year. With these questions and expectations, he hopes that everyone can discuss and exchange ideas in depth during the following meetings.
Finally, Chairman Ji wished the 2023 National Textile Raw Materials Information Exchange Conference and the 40th Wool Salon of the Wool Merchants Association a complete success on behalf of the Wool Merchants Association!
Mr. Huang Yubing, General Manager of Jiangsu Jubai Wool Products Co., Ltd., gave a speech.
General Manager Huang said that under the current circumstances where the downward trend in the international and domestic wool textile industry continues, how should wool textile professionals face and overcome the challenges? How can we in the carbonization industry leverage our advantages, provide high-quality services, maintain excellent quality, and maintain a firm commitment to innovation to help fellow wool textile professionals overcome difficulties. Jubai Company leverages its team's strengths, with many professionals with extensive experience in the production and operation of wool raw materials, and through more equity incentive reforms, it has attracted more outstanding talents to join Jubai's management team to adapt to the upgrading of the current wool textile industry and the fierce competition in the textile industry. Optimizing and innovating management models, changing the previous traditional management models, implementing the Amoeba digital management model, independent accounting, fully stimulating employee enthusiasm, and under the premise of maintaining quality, production capacity has been better utilized. The layout of the company's three production lines provides more refined classification for carbonized products with different quality requirements. Jubai will focus on self-improvement, continuous innovation, and meet the needs of high-end domestic brands. Promoting loose fiber silk luster technology, reforming the technological process, reducing comprehensive links, reducing silk luster processing costs, and creating economic benefits for customers. The continuous decline in the market has led to increasing storage pressure in the carbonization industry. The company has increased its storage capacity by nearly 10,000 square meters, greatly facilitating customers and solving their problems. General Manager Huang also introduced the situation of Nantong Hongyang Wool Felt Products Co., Ltd., which is the only company in China that produces pure wool products in artificial fur, and has developed characteristic products such as machine-washable wool quilts and capes.
Mr. Zhu Jiankun, Chairman of Zhejiang Yongjin Biotechnology Co., Ltd., gave a speech.
Chairman Zhu Jiankun said that it has been very difficult to operate a real business in recent years, but no matter how fast the world changes or how much the market changes, maintaining an optimistic attitude is very important for enterprises. As long as we do a good job in our products and quality, there will always be a place for us in the market. This year's market, after a slight improvement at the beginning of the year, has been declining, putting a lot of pressure on everyone. Under the current severe situation, excellent enterprises may stand out, such as Zhejiang Xinao, which has had another successful year. For enterprises, doing things well and doing products well is crucial. This conference provides an opportunity for everyone to exchange information, production, and technology. He hopes that everyone will make good use of this opportunity to communicate and exchange more!
Mr. Liu Quanlin, Chairman and General Manager of Tianjin Tianyang Textile Co., Ltd., gave a speech.
Chairman Liu extended his warm congratulations on the successful convening of the conference. The annual exchange conference has provided a broad platform for information communication, resource sharing, and win-win cooperation. He expressed his sincere gratitude to Mr. Hu Guohu and his team for their hard work. Mr. Liu said that over the years, the development of Tianyang Textile, especially during the three years of the epidemic, has been able to proceed smoothly thanks to the support and help of all colleagues. With the continuous improvement of national environmental protection requirements and standards, and the continued downturn in the textile industry, especially the repositioning of the overall planning of Tianjin's textile industry, Tianyang Textile is also gradually adjusting its production scale, layout, and development direction. Denim and pocket fabrics are gradually being phased out, retaining an annual scale of 4,000 tons of wool washing and 2,000 tons of combing. The company's production scale has been reduced, but survival through quality and development through reputation are the unchanging corporate spirit and pursuit of Tianyang Textile. Chairman Liu looks forward to continuing sincere cooperation and mutual benefit and win-win results with everyone in future development. Everyone gathered in beautiful Luoyang to discuss the development of the textile industry, discuss cooperation opportunities, and share the fruits of cooperation, allowing the wool textile industry to set sail on a new journey after the epidemic and create a new future for textiles!
Mr. Li Guoqiang, General Manager of the Wool Division of Jiaozuo Longfeng Gelemei Co., Ltd., gave a speech.
General Manager Li Guoqiang extended a warm welcome to the attendees on behalf of Henan's local enterprises. In his introduction of Longfeng Company, Mr. Li stated that Longfeng has continuously increased its investment in the wool industry, expanding from simple raw material sales to wool washing, combing, silk finishing, dyeing, weaving, and finished product processing. In the future, Longfeng's wool washing capacity will increase to 24,000 tons, and combing capacity will reach 6,000-8,000 tons. Mr. Li firmly believes that people's production and travel are inseparable from clothing and wool, making wool a sunrise industry.
General Manager Tu Jing of Guangshan Bai Shark Needle Cloth Co., Ltd. gave a speech.
General Manager Tu Jing introduced the overview of Bai Shark Company. Located in Xinyang, Henan, Bai Shark Needle Cloth Company was established in 1962 and celebrates its 61st anniversary this year, employing over 900 people. General Manager Tu introduced the company's journey from 1962 to 2022, highlighting its adherence to the craftsman spirit of "meticulous attention to every stitch and tooth," continuous improvement and upgrading of equipment, strict control of product quality, enhancement of comprehensive strength, and commitment to becoming a century-old needle cloth brand. The company's success is attributed to the care and support of colleagues in the textile industry and the hard work of Bai Shark employees. Over 60 years, Bai Shark Needle Cloth has developed into a professional and international company integrating R&D, manufacturing, sales, and technical services, following the national 14th Five-Year Plan's strategic guidelines for high-quality development.
Yang Luguang, General Manager of Wuxi Changyang Wool Washing Co., Ltd. Hopes that various enterprises will provide more support to Changyang Wool Washing and wishes the conference a complete success.
General Manager Hu Guohu introduced the situation of the conference. The conference has been held for 27 years since 1997! (It was not held in 2003, 2020, and 2022 due to the epidemic). It has always received widespread attention from all sectors of society. Leaders of the China Wool Textile Industry Association have always cared for and supported the event. The association's secretariat also provided a report analyzing the operating situation of the wool textile industry from January to May 2023. President Liu Jiaqiang was unable to attend due to a scheduling conflict but sent his congratulations. Mr. Wang Qiang from the Australian Wool Testing Authority, Mr. Liang Jun from New Zealand International Wool Company, Mr. Liao Bing, General Manager of Shanghai Xinjie Freight Forwarding Agency Co., Ltd., and Mr. Zhang Xing, General Manager of Zhangjiagang Bonded Zone Xingmu International Trade Co., Ltd., all sent video congratulations or market analysis articles!
2023 National Textile Raw Materials Information Exchange Conference
After the speeches by the guests on the stage, General Manager Hu Guohu invited Mr. Feng Bing, General Manager of Ningbo Xingsuo Textile Trading Co., Ltd., to introduce the situation of the wool industry and host the guest forum.
General Manager Feng Bing first introduced the general situation of the wool industry in the first half of the year.
First, the general situation of wool production was introduced. In 2021, the global sheep population was 1.285 billion, accounting for 53.6% of the total sheep population. The total sheep population showed an overall upward trend, but the growth rate was lower than that of goats. The global sheep farming industry has undergone a transition from "wool-based, meat secondary" to "meat-based, wool secondary." The increased demand for meat is one of the reasons for the decrease in wool production. Comparing the global sheep wool production structure in 1990 and 2021, the production in 1990 was 2.007 million tons, and in 2021 it was 1.034 million tons. While the total amount decreased by nearly 50%, the proportion of wool >32.5um increased from 30.3% to 40.8%, the proportion of 24.6-32.5um wool decreased from 22.4% to 22.0%, and the proportion of ≤24.5um wool decreased from 47.3% to 37.2%, indicating a significant reduction in the proportion of fine wool production. China remains the country with the largest sheep population globally, accounting for 13.6% of the global population, followed by India (5.5%) and Australia (5.4%). However, in terms of sheep wool production, Australia ranks first with a 22.0% share, being the main source of wool for clothing. Since 2010/2011, Australian wool production has shown a fluctuating decline, but it has remained relatively stable and slightly increased since 2021/2022. It is expected that Australian wool production will increase to 332,000 tons in 2023/2024, with an increase in the supply of superfine wool.
Secondly, the general situation of the wool industry in the first half of the year was introduced. In the first half of this year, GDP grew by 5.5% according to preliminary calculations, while the added value of industrial enterprises above designated size in the textile industry decreased by 2.4% year-on-year, with approximately 1/3 of enterprises incurring losses. From January to June, urban residents' clothing expenditure increased by 5.3% year-on-year compared to the same period last year, while clothing expenditure in the first quarter decreased by 3.3%, reflecting a slow recovery in consumer willingness during the traditional peak sales season for wool products. According to customs statistics, the value of textile exports in US dollars in the first half of the year decreased compared to the same period last year, with textile yarn decreasing by 12.1%, textile fabrics decreasing by 11.0%, textile products decreasing by 10.5%, and clothing exports decreasing by 5.9%. Wool product exports showed a pattern of high in the beginning and low later. Affected by sluggish domestic demand, weakening external demand, and global economic factors, Australian wool auction prices have fallen continuously in the second quarter of this year, especially for fine and superfine wool, resulting in significant losses for wool production and processing enterprises. At the same time, the depreciation of the RMB against the US dollar has caused considerable exchange losses for some enterprises, exacerbating the situation.
From January to June 2023, China imported 152,086 tons of wool, a year-on-year increase of 9.02%, with 95,826 tons imported from Australia, a year-on-year increase of 10.2%. However, there are significant differences among different enterprises, products, and markets. In the first half of the year, wool top exports increased by 21%, mainly driven by several large wool top producing enterprises. From January to May, the output of wool yarn by enterprises above designated size increased by 6.4% year-on-year, while the output of wool fabrics decreased by 5.9% year-on-year. However, for small and medium-sized enterprises, the demand for short wool tops has remained sluggish, resulting in reduced production of coarse and semi-worsted yarns, a significant decrease in the operating rate of enterprises, at least a halving of spinning processing fees, and a large inventory buildup and significant shrinkage in demand for low-end coarse fabrics, putting enormous pressure on enterprises. Since this year, we have also seen that several leading enterprises are actively deploying overseas industrial chains under the influence of "de-risking," while some small and medium-sized enterprises have closed down.
Finally, summarizing the general situation of the wool industry in the first half of the year, General Manager Feng Bing believes that under the multiple pressures of reduced market demand, falling wool prices, and exchange rate fluctuations, the polarization between leading enterprises and most small and medium-sized enterprises has intensified.
Following the report, General Manager Feng Bing invited several guests to interact and discuss the situation of the wool industry in the first half of the year.
Feng Bing: First, please let Tao Chunhua, Deputy General Manager of Sales at Tianyu Wool Industry (Zhangjiagang Bonded Zone) Co., Ltd. Introduce the situation of wool top production this year. As everyone has noticed, Tianyu has been buying wool throughout the first half of the year, during which wool prices have been falling, and the performance of leading enterprises has still been good.
Tao Chunhua: The overall economic situation in the first half of this year was relatively poor. Due to Tianyu's large export proportion, the export ratio decreased from 2019 to 2021. However, starting in 2022, with the gradual easing of the European epidemic and the slow economic recovery, our European market share has grown rapidly. Domestically, however, the Tongxiang market's operating rate was very poor, with spinning processing fees dropping from around 46,000-48,000 in 2020-2021 to between 17,000-18,000 this year, even as low as 15,000-16,000. In 2022, there was a large amount of remaining inventory, sales were unsatisfactory, and confidence was lacking. To date, there has not been much activity in the Puyuan market.
Under the guidance and leadership of the chairman, Tianyu Company has achieved a 20% sales growth target in the first half of this year. Although confidence is low, I believe the market will soon pick up. The market should react in the second half of the year, but expectations shouldn't be too high. I don't think domestic sales will be very good overall. The fine-spun fabric market may be relatively stable, and there will be some orders for fabrics now and later. Recently, the demand for 66-count and 70-count fabrics has rebounded relatively quickly, but I remain pessimistic about the fine-count short-staple top market.
