During the first quarter, China’s printing and dyeing industry demonstrated significant economic resilience and got off to a strong start. The production and exports of key printing and dyeing products maintained a positive growth trend; operational benefits continued to improve. However, the current industry profitability imbalance has become more pronounced, and market competition has intensified. The foundation for high-quality development in the industry still needs to be further strengthened.

The data released by the National Bureau of Statistics revealed that the output of printed and dyed fabrics above the designated size in the printing and dyeing industry grew by 5.74% year-on-year, 1.78 and 2.46 percentage points faster than the growth rate of the same period of last year and the overall performance of 2024, respectively.

China’s printed and dyed fabrics output has grown primarily due to two factors. First, international tariff pressures have created a noticeable front-loading export effect in China’s printing and dyeing industry, leading to a quicker growth in product exports in the first quarter. Second, existing and new policies effectively foster a robust start for the country’s macro-economy. The gross domestic product (GDP) in the first quarter increased by 5.4% year-on-year, 0.4 percentage points higher than in 2024. Supported by stable and improving economic fundamentals, the domestic textile and apparel market has experienced a mild recovery. While the volume of exports grew faster, the unit price of exports dropped significantly.

According to the statistics released by China General Customs, the export volume of eight major categories of printed and dyed products, i.e., dyed cotton fabric, printed cotton fabric, dyed cotton-blended fabric, printed cotton-blended fabric, synthetic filament fabric, polyester staple fabric, printed and dyed T/C fabric, man-made staple fabric, totaled 8.48 billion meters in the first quarter of this year, up by 11.81% year-on-year, 5.27 percentage points. The export value reached US$7.38 billion, with a slight year-on-year increase of 0.77%. The average export unit price was US$ 0.87/meter, declining by 9.88% year-on-year.

Since the beginning of this year, the international environment has been chaotic, particularly due to the U.S. government’s implementation of tariff policies, which has impacted the global trade system. Despite these challenges, China’s printing and dyeing industry has demonstrated greater resilience in its foreign trade performance, thanks to its advantages in industrial scale, support, production efficiency, technology, and human resources. Based on last year’s high base, the export volume of eight major categories of printed and dyed products has achieved double-digit growth. However, the uncertainty surrounding U.S. tariff policy has intensified competition within the industry, causing a sharp drop in the average unit price of exported printed and dyed products. This has led to increasing export volumes alongside falling prices in China’s main markets. In the first quarter, export volumes for China’s eight major categories of printed and dyed products to ASEAN and RCEP trading countries grew by 8.59% and 8.45%, respectively. Meanwhile, the average unit prices of these exports fell by 13.65% and 13.14%, exceeding the industry average decline rate. Among the top ten export destinations, only exports to Russia decreased. In contrast, export quantities to the other nine countries all grew, with Nigeria leading at a 44.27% year-on-year increase. This growth in Nigeria is mainly attributed to a series of reform measures implemented by the local government, including addressing revenue losses, enhancing inter-agency cooperation, and encouraging trade entities to comply with laws and regulations. Exports to Brazil, Myanmar, and Pakistan also rose by over 20%. In terms of average unit prices, exports to the top ten countries saw an overall decrease of 13.31%. Notably, exports to Vietnam experienced the most significant drop, nearly 20%. In contrast, export prices to India, Pakistan, and Russia increased.

According to the National Bureau of Statistics data, the share of three overheads in turnover was 7.52% in the first quarter of this year, down 0.16 percentage points year-on-year. Corporate cost control achieved positive results. The turnover rate of finished products was 12.66 times/year, down 6.12% year-on-year; the turnover of accounts receivable was 7.56 times/year, seeing a year-on-year decline of 5.46%; and the total asset turnover was 0.87 times/year, decreasing by 1.69% year-on-year. In the first quarter, the printing and dyeing industry experienced a decline in its main operational efficiency indicators compared to the same period last year. Poor convergence between production and marketing activities led to an extended recovery cycle for accounts receivable, reduced asset utilisation efficiency, and increased business pressure.

Regarding benefits, data from the National Bureau of Statistics indicated that the operating income of China’s printing and dyeing enterprises above the designated size rose by 3.25% year-on-year. The sales profit margin reached 3.07%, up 0.12 percentage points from the same period last year. However, 43.99% of printing and dyeing enterprises still operated at a loss, with a total loss value of 1.29 billion yuan, down 1.25% from the previous year. In the first quarter, the accelerated growth of industrial production continued to bolster the revenue and total profits of the printing and dyeing industry, maintaining the positive trend established in 2024. The growth rates surpassed those of the textile industry by 1.78 and 7.28 percentage points, respectively. Industry profitability continued to enhance, with the losses from deficit-operating enterprises decreasing. Nevertheless, the current losses in the printing and dyeing industry remain substantial, exceeding those of the textile industry by 9.91 percentage points, highlighting the widening gap in profitability levels.

Overall, in the first quarter, the economic performance of China’s printing and dyeing industry made a smooth start, with primary production and operational indicators generally showing growth. This further strengthened the foundation for the industry’s positive development. Looking ahead to the second quarter, during the transition period of the U.S. tariff policy, China’s printing and dyeing industry is still expected to maintain strong growth in production and exports. However, the U.S. tariff policy will introduce significant uncertainty in the second half of this year and for a prolonged period thereafter. This will have far-reaching effects on regional and global trade, investment, and supply chains. The resulting ripple effects will likely diminish the prospects for global economic growth and potentially reduce demand for textiles and clothing in the international market. This, in turn, could further apply pressure on the economic performance of China’s printing and dyeing industry.

Source: CHINA TEXTILE LEADER Express