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Expert Viewpoint: New Trend Of International Flax Market

2011/4/7 14:09:00 47

In the post crisis era, the world economy recovering slowly from the trough experienced a series of major economic, political and natural events, including quantitative easing monetary policy in the United States, political instability in Tunisia and Egypt, the earthquake and tsunami in Japan.

The future of the world economy is uncertain and unpredictable.

Linen, which has a very small position in the economic map, is the most popular textile material in China's textile system. The monetary policy of the United States directly affects the price trend of linen fiber and gauze. Tunisia's North Africa region is a new linen Market. Egypt is a growing linen raw material base. Japan is the twelfth largest destination of China's linen yarn and the linen fabric.

The world is flat, showing no doubt in the linen industry we are engaged in.

In light of the recent changes in the international flax market, there are some new trends that deserve the attention of colleagues in the industry.

Yarn Market:

India

The newly emerging linen yarn market has successfully taken away the dominant position of Western European countries. India has surpassed Italy in 2010 to become China's largest export destination for flax yarns.

The rise of India and other countries did not completely repeat the development path of our country. The linen industry in India is an example: India did not take the first expansion of the spindle, then expanded the traditional order of weaving and dyeing and clothing, but first developed the downstream of the industrial chain such as dyed fabric and garment industry, and soon became a major customer of China's flax industry, which also strongly affected the linen dyed weaving industry in China.

Similar cases are also reflected in Turkey and Brazil.

Cloth Market: emerging with Bangladesh as its representative

Flax

The cloth market was also surpassed in 2010

Italy

Like traditional Western European powers, Bangladesh has become the largest destination of linen export in China (except for the Hongkong area, which is mainly re exports).

Similar countries include Vietnam, Indonesia, India and Sri Lanka.

These countries are concentrated in South Asia and Southeast Asia. Due to the rapid development of garment industry in recent years, these countries have imported large quantities of China's linen and have formed the scale advantage.

The development of linen clothing industry in South Asia and Southeast Asia has greatly impacted the linen clothing industry in China. This is also the main reason why the industry has not been able to get out of difficulties in recent two years.

The change of linen export situation has also had an important impact on the domestic linen printing and dyeing industry.

Challenges are accompanied by opportunities, and this industry is bound to change from introverted to outward oriented.

Raw material Market: the market of flax raw materials is uncertain. There are many constraints, including supply and demand, foreign exchange rate, US monetary policy, related agricultural policies, global flax sown area, climate change in the growing countries, international fashion trends, and seasonal changes in textile and garment industries.

Last year, the import volume of flax fiber in China has been restored to the level of 2007, and this year there is a trend of further increase.

Meanwhile, the market share of domestic hemp has dropped to single digits.

Therefore, expanding the planting area of domestic hemp and increasing the source of goods are the major concerns of China's textile industry association this year.

Recently, Western Europe and China have entered the sowing period of flax, and planting information will be clearer in a few weeks.