Analysis of the operation of the industrial fabric industry

Analysis of the operation of the industrial fabric industry

In the first half of 2008, the nonwoven and technical textiles industry nationwide exhibited a stable development trend overall, albeit with a decelerating growth momentum. Upon detailed analysis of the situation in the first half of the year, factors such as fluctuations in raw material prices, rising labor costs, exchange rate variations, as well as the plastic limit order and earthquake relief efforts, had an impact on the industry's development. 　

In early 2008, enterprises in the south were hit by snow and ice disasters. The domestic RMB appreciation accelerated, monetary policy tightened, export tax rebates were reduced, and the new "Labor Contract Law" officially came into effect, all of which increased production costs and reduced profit margins for enterprises. In particular, the continuous depreciation of the US dollar severely disrupted the export market, causing significant losses in foreign exchange settlement for export enterprises. Some enterprises ceased production of export products and reduced their scale.  

Excluding the above comprehensive factors, throughout the first half of the year, the nonwoven and technical textile industry nationwide faced the impact of uncertain factors such as drastic fluctuations in raw material prices, which brought a series of difficulties to production operations.  

The drastic fluctuation in raw material prices is a major factor affecting enterprise production

The nonwoven industry is a fully competitive one, where most products have relatively low value-added levels. The prices of production factors, especially raw material prices, are the primary factors affecting corporate profitability in the supply-demand relationship.  

Spunbond nonwoven fabric

The spunbond nonwoven industry has encountered significant raw material price fluctuations. Compared to previous years, there has been an increase in the number of spunbond equipment shutdowns and transfers, primarily due to rising raw material prices and fierce competition in the roll material market, making it increasingly difficult for companies to make money. Especially during May and June, raw material prices rose rapidly, with polypropylene prices increasing by an average of around 3,000 yuan/ton. Many companies were unable to cope with such a large increase in a short period of time, leading to operational difficulties. Most of these companies are small in scale and have weak technical capabilities, so they can only continuously adjust prices with downstream users, resulting in severe competition within the domestic industry. At the same time, the export market for spunbond nonwoven fabrics has stagnated, with raw material price fluctuations, a decline in the US dollar exchange rate, and a decrease in profit margins. Some companies have stopped export production, while some powerful companies have gradually adopted the export method of RMB settlement to reduce losses caused by exchange rate fluctuations.  

Spunlace nonwoven fabric

After experiencing difficulties last year, spunlace nonwoven fabrics have seen some improvement this year with the downward adjustment of industrial fabric prices. After experiencing a rapid price increase in 2007, the price of viscose industrial fabrics began to fall from March 2008, with the most significant decline in May. By mid-May, compared to the beginning of this year, the price of high-end industrial fabrics had decreased by about 3,000 yuan per ton, mid-range products by about 3,200 yuan, and low-end products by about 3,300 yuan. The cost price of spunlace nonwoven semi-finished products has decreased, and the profit margin has increased.  

The plastic limit order brings new opportunities for the development of some enterprises

In early 2008, the General Office of the State Council issued the "Notice on Restricting the Production, Sale, and Use of Plastic Shopping Bags", presenting new opportunities for the development of nonwoven fabrics. Spunbond nonwoven shopping bags, with their advantages of being lightweight, aesthetically pleasing, and durable, have become popular and are the best choice to replace polyethylene shopping bags. Especially, their usage in product packaging bags and shopping mall or corporate promotional bags is increasingly widespread. However, as bags sold as merchandise generally have limited sales, it will take some time for them to be widely recognized by consumers.  

The market sales of filter materials have been influenced by national environmental protection policies, showing a positive trend. Currently, the country has increasingly stringent environmental protection requirements for industries such as steel, metallurgy, chemical, cement, and coal. There are clear requirements and standards for the use of filter bags and dust removal bags, which has led to more standardized application of filter materials and a growing market.  

Nonwoven fabrics and industrial textiles play a significant role in earthquake relief and disaster relief

On May 12, 2008, a powerful earthquake measuring 8.0 on the Richter scale struck Sichuan, centered around Wenchuan County, posing a threat to the lives of hundreds of thousands of victims. Enterprises in the industry deeply felt their social responsibility and prioritized earthquake relief as their top task, working overtime to produce earthquake relief supplies. Nonwoven fabrics and industrial textiles played a significant role in this disaster relief effort.  

Ropes, cords, cables, parachutes, etc. are essential items for rescue

In disaster relief, ropes, cables, and slings are essential rescue tools. Industry enterprises have specially designed "rescue-specific slings" and quickly produced high-quality disaster relief-specific slings to support the disaster areas in the shortest possible time. At the same time, they allocated finished sling products from nearby branches in Beijing, Tianjin, Henan, Tangshan, and other regions, and mobilized all available order goods to provide maximum support to the disaster areas.  

Earthquakes cause significant damage to road traffic. To quickly assess the disaster situation and carry out emergency rescue, the Air Force implemented high-altitude airborne operations for the first time. Under adverse weather conditions, paratroopers successfully landed in the rugged mountains. During this paratrooper airborne operation in the disaster area, the parachutes used for airlifting personnel and supplies were all industrial coated fabrics.  

Tents, medical and hygienic textiles, and filtration materials are essential for post-disaster reconstruction

For a time, tents became the primary necessity for resettling the victims after the disaster, and all industrial fabric production factories worked overtime 24/7 to rush out tents for the disaster areas. Industrial fabrics, car tarpaulins, storage fabrics, and various tarpaulins also became the main materials for building temporary structures. According to incomplete statistics, domestic industrial fabric manufacturers produced over 1 million tents and more than 4,000 tons of tarpaulin fabric.  

With the improvement of people's living standards, the usage space for disposable medical and hygienic textiles is continuously expanding. The penetration rate of disposable diapers and sanitary napkins has further increased, and the application of disposable bedsheets, surgical drapes, and other surgical room supplies in hospitals is also expanding. The usage of nonwoven dry and wet wipes is also on the rise. This year, after the 5.12 earthquake, in order to prevent the occurrence of major epidemics, disaster areas urgently needed various medical and hygienic protective products. Nonwoven product manufacturers took active measures to rush to produce products for the disaster areas. Bandages, gauze rolls, sterile gauze pieces, sterile gauze pads, cotton wool, masks, surgical bags, surgical gowns, etc. are the most scarce and urgently needed medical supplies in the disaster areas, bringing some opportunities to the industry.  

To address the drinking water issue in disaster areas and ensure the safety of the local people, water filtration systems have been fully utilized. The continuous membrane filtration water purification equipment, donated by industry enterprises for the disaster areas and capable of producing 100 tons of water daily, utilizes hollow industrial cloth membrane components with a unique structure and high anti-pollution materials, as well as a unique gas-water dual-washing process technology. This effectively removes suspended solids, microorganisms, bacteria, algae, colloids, and other impurities from the water, resulting in clear and transparent purified water with nearly zero turbidity. The water bags made from special textiles donated to the disaster areas have solved the difficulty of storing clean drinking water for the local people.  

Geotextiles exhibit excellent filtering, isolating, reinforcing, and protective functions, playing a significant role in reinforcing reservoirs, dams of barrier lakes, preventing landslides and collapses, water seepage, as well as isolating collapsed buildings. 5• In the 12th major earthquake, once the barrier lakes and reservoir embankments breach, their destructive power surpasses that of the earthquake itself. The safety of millions of soldiers and civilians downstream will be severely threatened, and the consequences will be devastating. Geotextiles have played a significant role in reinforcing barrier lake embankments and reservoir embankments, mitigating the risk of barrier lake breaches, and preventing landslides and collapses in disaster areas.