Recent trade events like Cotton Conference in Zhangjiagang, the Hangzhou Chemical Fiber Forum, and the Shanghai Yarn Expo have all attracted large crowds indicating a strong enthusiasm for face-to-face interactions. However, while the surge in attendance may suggest a booming market, there are concerns about the sustainability of this recovery.

The home textiles market, driven by the hotel industry, is expected to remain strong for some time. Increased business travel and tourism are also likely to drive some clothing consumption. Nevertheless, industry players are becoming increasingly cautious as new orders continue to decrease, and a worrying sentiment is beginning to rise.

Export sales have also been a cause for concern as data from China customs shows a sixth consecutive month of year-on-year decline in textile and apparel exports. Clothing accounts for over half of the total textile and clothing exports, with exports to Europe, the United States, and Bangladesh decreasing by over 30%. Only a few markets, such as South Korea, Kyrgyzstan, Russia, Brazil, Kazakhstan, Saudi Arabia, and Singapore, have shown some growth.

Although the recovery of domestic sales seems to be in stark contrast to the decline in export sales, the strength of the recovery still needs to be determined by the real downstream demand.

Overall, while the recent offline gatherings have been encouraging, caution remains as the sustainability of the recovery and the uncertainty of the export market continue to weigh on the industry.