Experts' Perspective: New Trends in International Flax Market

In the post-crisis era, the slow recovery of the world economy has experienced a series of major economic, political and natural events, including the introduction of quantitative easing monetary policy in the United States, political instability in Egypt, major earthquakes and tsunami in Japan. Wait. The future of the world economy is increasingly unknown and unpredictable.

The flax, which has a slight position in the economic map, is the most internationally concentrated textile raw material in China's textile system. The US monetary policy directly affects the price trend of flax fibers and gauze, and the North African region represented by the United States is emerging flax. In the gauze market, Egypt is a growing raw material base for flax, and Japan is the seventh largest destination for linen yarn and the second largest destination for flax. The world is flat and undoubtedly demonstrated in the linen industry that we are engaged in.

Combined with the recent development of the international flax market, there are some new trends worthy of the attention of the industry's colleagues:

Yarn Market: The emerging flax yarn market represented by India has succeeded in taking away the dominant position of Western European countries. India has surpassed Italy as the largest export destination of Chinese flax yarn in 2010. The rise of India and other countries did not completely repeat the development trajectory of China. India's flax industry is an example: India did not go first to expand spindles, and then expanded the traditional order of weaving, dyeing and garments. Instead, it first developed the color yarn industry. Downstream of the apparel industry chain and other industries, and soon become a major customer of China's flax industry, it also strongly impacted the country's flax-colored weaving industry. Similar situations are also reflected in Turkey and Brazil.

Cloth Market: The emerging linen market, represented by Bangladesh, surpassed traditional Western European countries such as Italy in 2010. Bangladesh has become China's largest linen export destination (except Hong Kong, which is mainly re-export trade). Similar countries include Vietnam, Indonesia, India, Sri Lanka and other countries. These countries are concentrated in South Asia and Southeast Asia, due to the rapid development of their clothing industry in recent years, these countries import a large number of Chinese linen, and has formed a scale advantage. The development of the flax garment industry in South and Southeast Asia has greatly impacted the flax garment industry in China. This is also the main reason why the industry in the past two years is difficult to get out of difficulties. The change in the situation of linen exports has also had an important impact on the domestic flax printing and dyeing industry. Challenges accompany the opportunity, and the industry's transformation from inward to outbound is inevitable.

Raw material market: The flax raw material market is unpredictable, and there are many constraints, including supply and demand, exchange rate, U.S. monetary policy, related country's agricultural policy, global flax planting area, climate change in growing countries, international fashion trends, textile and clothing. Industry seasonal changes. Last year, the import volume of flax fiber in China has returned to the level of 2007, and there is still a further increase this year. At the same time, the market share of domestically produced hemp has dropped to single digits. Therefore, the expansion of the domestic hemp planting area and the increase in the choice of sources of supply have been the focus of this year's China Machining Industry Association, and it is also a major event for many linen spinning companies in the industry. Recently, Western Europe and China have entered the sowing period for flax, and information on planting will be clear in a few weeks.