Monthly Report On Production Analysis Of Chinese Cotton Textile Enterprises In September 2012

Project Undertaken: China Cotton spin Industry Association

Survey object: backbone cotton textile enterprises in 17 provinces

In order to meet the production demand of textile enterprises, the state put in some reserve cotton in September. At the same time, the temporary collection and storage of cotton in the new year began. The domestic spot market price of cotton rose slightly, and the yarn price was basically the same as last month. Affected by many factors, such as difficult recruitment, insufficient market demand, and tight funding, some textile enterprises have limited production, textile output has continued to decline slightly, inventory has increased month on month, and most textile enterprises have low profits or even losses, mainly to maintain production.

1、 Inventory

（1） Increase of raw material purchase quantity

In September, the relevant departments put some reserve cotton on the market at the base price of 18500 yuan/ton. Due to the large gap between the price of temporary storage and purchase in the new year, textile enterprises have high hopes and participated actively, with a total of 490000 tons sold in the whole month. The survey shows that some enterprises are in urgent need of raw cotton inventory, and the release of reserve cotton effectively replenishes the inventory; Some enterprises also gave up bidding and purchased a certain amount of Xinjiang cotton because the quality and grade could not meet the production needs. Affected by this, textile enterprises purchased more raw cotton than before.

The total amount of raw materials purchased by the surveyed enterprises in September increased by 24% month on month, of which raw cotton increased by 31% month on month, while the purchase of chemical fibers and other new fibers decreased by 5% and 35% month on month respectively.

（2） Both year-on-year and month on month growth of raw material inventory

Since 2012, textile enterprises have mainly digested the inventory of high priced raw cotton, and bought as needed. As the national temporary purchase and storage prices have become the wind vane of cotton prices in the new year, enterprises are worried about the price rise. In order to save production costs and reduce losses, capital The more abundant enterprises increased the purchase of raw materials, which led to the rapid growth of raw material inventory.

In September, the raw material inventory of enterprises surveyed increased by 15% year on year and 25% month on month. Among them, raw cotton increased by 15.4% year on year and 33% month on month; Chemical fiber increased by 13.8% year on year and decreased by 6.1% month on month; New fiber increased by 2.6% year on year and 10% month on month.

（3） Gauze product inventory pressure rises again

Although the textile market slightly improved in July and August, the trend of decreasing consumer demand has not fundamentally changed. After the seasonal replenishment ended, the sales volume fell again in September, the inventory pressure of finished products rose again, and the pressure on working capital of enterprises also increased.

The inventory of yarn products of the surveyed enterprises in September increased by 4% month on month, of which pure cotton yarn increased by 3%, cotton blended yarn increased by 13%, and chemical fiber yarn decreased by 14%. According to the proportion of raw materials used, the proportion of raw cotton increased in September and the proportion of chemical fiber decreased.

Some spinning enterprises reflect that the sales of knitted products are relatively good, and the difficulties of woven weaving enterprises are even greater. In September, the inventory of grey cloth products increased by 3% month on month, of which the pure cotton cloth increased by 4%, the cotton blended cloth was basically flat, and the chemical fiber cloth decreased by 54%.

2、 Production

The phenomenon of textile enterprises shutting down and limiting production continues, and it is difficult for some small enterprises that have stopped production to resume production. The overall operating rate of the surveyed enterprises is 80% - 90%. Some enterprises have taken measures to limit production, and the yarn output has decreased by about 10% year on year; Because combed and high count yarns are unsalable in some enterprises, the product structure has been adjusted to reduce the production of count yarns, and the total weight of yarns has increased to a certain extent; At the same time, with the emergence of scale advantages of large and medium-sized enterprises, orders are further concentrated, and outsourced processing enterprises are increasing.

From January to September, the cumulative yarn output of the surveyed enterprises decreased by 1% year on year, of which pure cotton yarn increased by 2%, cotton blended yarn slightly increased, and chemical fiber yarn decreased by 6%.

From January to September, the cumulative fabric output of the surveyed enterprises increased by 1.5% year on year, of which pure cotton cloth decreased by 1.8%, cotton blended cloth increased by 0.4%, and chemical fiber cloth increased by 20%.

3、 Sales

Although the price of raw cotton has risen slightly since the new year, the increase in yarn price is lower than that of cotton due to the influence of sales cooling back. The average monthly price of 32 yarns of the surveyed enterprises was 27830 yuan/ton, up 1.3% month on month and down 9.8% year on year.

From the perspective of yarn varieties, due to the blocked sales of combed and high count products, the price dropped significantly, and some enterprises' combers were closed, with the average yarn count slightly declining; The price of viscose and polyester fiber fell, driving the product price down slightly.

from Weaving From the perspective of variety: except for a few special products, the sales of most products are difficult and the prices fall back.