According to the price monitoring of SunSirs, in the 11th week of 2024 (3.11-3.15), there are 2 commodities in the textile sector that have increased month-on-month in the bulk commodity price increase and decrease list. The top two commodities with the highest increase are PTA (1.12%), polyester staple fiber ( 0.66%). There were 12 commodities that declined month-on-month. The top three products were nylon DTY (-1.86%), nylon POY (-1.75%), and nylon FDY (-1.72%). The average weekly increase or decrease was -0.46%.

The PTA market has experienced a slight rebound recently, mainly due to favorable cost support. International crude oil prices have fluctuated and risen recently due to geopolitical tensions and the expected impact of U.S. crude oil destocking. The price increase of PX has further expanded. Although the domestic PX supply level is still high in the short term, the equipment maintenance plan is concentrated in the second quarter, coupled with the investment in new downstream PTA production capacity, it is expected that the center of gravity of PX prices will be warmed up. In the short term, cost support is still strong, and the downstream intention to replenish inventory is gradually increasing, and the planned maintenance of the 4.5 million tons of PTA equipment may reduce PTA inventory, and PTA may operate in a strong shock.

Guosen Securities released its April textile and apparel investment strategy and first-quarter performance outlook, saying that from a macro data perspective, Vietnam and China's textile and apparel exports will pick up significantly in early 2024, with China's new orders PMI exceeding 50 for the first time in the past 12 months, and at the same time, the loom startup rate Maintained a slight improvement year-on-year. From the perspective of micro data, the revenue performance of Taiwanese OEM companies generally improved year-on-year from January to February. Therefore, the destocking of overseas brands has been basically completed, and there is a clear trend of gradual recovery in subsequent manufacturing orders.

Looking forward to the first quarter performance of A-share textile and apparel, due to the high base of brands last year and differentiated performance, high-quality men's clothing and home textile revenue are expected to maintain growth, and the net profit margin of men's clothing will increase. At the same time, most manufacturing companies are expected to see double-digit revenue growth and significant improvement in profit margins driven by increased operating rates and cost control. Looking forward to the first quarter sales of Hong Kong sports brands, Anta, FILA, Li Ning, and Xtep are all expected to grow in single digits, with 361 degrees growing by more than double digits.

To sum up: Analysts from SunSirs believe that in late March, demand from the terminal textile and apparel industry has further picked up, and small-volume intended orders have also appeared in the foreign trade market. Foreign trade demand is still worth looking forward to. The number of new orders placed may gradually improve. After the domestic and foreign sales markets gradually improve, the supply and demand pattern may usher in an improvement, which will drive the prosperity of the entire textile industry to rise.