Xinhua News Agency, Washington, May 3: The Office of the United States Trade Representative announced that the two actions to impose tariffs on Chinese goods exported to the United States four years ago based on the results of the so-called “301 investigation” will end on July 6 and August 23 this year respectively. . Effective immediately, the office will initiate statutory review procedures for the relevant actions.
The Office of the U.S. Trade Representative issued a statement on the same day saying that it will inform representatives of U.S. domestic industries that have benefited from the additional tariffs on China that the relevant tariffs may be lifted.
U.S. tariffs on China may be lifted to stimulate exports
This news is undoubtedly good news for the export industry. Due to the sharp increase in inflationary pressure, there have been recent calls in the United States to reduce or reduce tariffs on China. The federal government can reduce tariffs on bicycles, clothing and other Chinese goods exported to the United States to help curb rising prices. Clothing has been included in the scope of tariff elimination, which indicates that my country’s textile and apparel industry may be able to export directly to the United States.
Looking back on the past, the domestic textile and apparel industry began to be seriously affected when the United States imposed additional tariffs on China in 2018. At first, orders were canceled, and then foreign trade orders continued to decrease. Until now, the entire foreign trade market is under difficulty and pressure. If the tariffs imposed by the United States on China can be lifted this year, it will definitely boost the entire foreign trade market. As a major textile and apparel manufacturing country, China’s international competitiveness will once again increase, and those lost orders may also return.
The atmosphere for receiving orders has improved, and the delivery of gray fabrics has accelerated.
At the same time, the domestic epidemic situation has also improved greatly, and logistics and transportation have begun to recover. The orders received by downstream weaving trading companies have also improved, and the delivery speed of gray fabrics has accelerated slightly. According to the person in charge of an industry and trade enterprise, he has recently received several orders for imitation silk, mostly chiffon, with the quantity being around 30,000 meters. After the beginning of the new year, it was originally the season for imitation silk to be sold, but the epidemic disrupted the rhythm of all orders, and imitation silk was also slow to sell. Nowadays, as the temperature rises, some of the summer orders that were missing in the early stage are gradually returning, so imitation silk has begun to become popular.
According to the orders received by dyeing factories, orders are also gradually increasing. Some merchandisers said that when they went to the dyeing factory at night to look at samples, there were so many cars that they couldn’t stop. It can be seen that many merchandisers are working hard all night even at night, so there must be a lot of orders. According to a salesperson from a local dyeing factory, starting from mid-to-late April, the number of gray fabrics entering the warehouse has increased, and the operating rate has also increased from 60% to 70%.
The effect of destocking polyester filament before the holiday is obvious
In terms of raw materials, taking polyester filament as an example, production was forced to be reduced due to high inventory levels. Finally, on the eve of the May Day holiday, manufacturers offered profit promotions, and the effect of destocking was obvious. According to data monitoring from Silkdu.com, POY’s load has dropped significantly in this round. At the end of the month, POY inventory dropped by about a week, to 25-30 days. Although polyester filament inventory has risen to 26 days in mid-to-late April, polyester filament inventory fell by 1-2 days in the last week of April, and the decline was relatively obvious. Weaving companies have already formed the habit of purchasing for urgent needs. The smooth removal of polyester yarn from the warehouse this time is also due to the improvement of downstream orders.
In addition, international crude oil futures rebounded strongly. On May 4, U.S. WTI June crude oil futures closed up 5.27% at $107.81/barrel; Brent July crude oil futures closed up 4.92% at $110.14/barrel, and both U.S. and U.S. oil prices closed at their highest closing prices since April 18. Both reached new highs and hit their biggest closing gains since April 12. OPEC oil production may continue to fail to meet the target in April, and OPEC+ may adhere to the current policy of moderately increasing production month by month. International oil prices will have a clear upward trend in the future. On the 5th, the polyester factory immediately issued a notice of price increase for polyester filament, and the pre-holiday promotion ended immediately. In a short period of time, polyester yarns may have risen sharply or lacked momentum, but the low-price days of continuous promotions may be hard to come by again.
At present, there are many textile companies in the market that have not received orders. However, after the epidemic situation improves, the market will be optimistic about the market in the second half of the year. Autumn and winter fabrics will soon begin to sell, especially pongee, nylon, and bra. Fabrics are more common products in the autumn and winter markets. Once the market booms in the second half of the year, these products will surely sell well. The main sales force of the textile industry is already in the second half of the year. Stimulated by multiple good news about the possible cancellation of tariffs, the recovery of the epidemic, and the improvement of orders, a wave of market conditions may break out in the second half of the year.
</p
