Economic Operation Analysis Of Cotton Textile Industry In 1~6 Month

In the first half of this year,

The operation still faces difficulties such as downward price of cotton, weakening of market demand, underemployment, and unclear market policy. However, the overall operation of the industry is stable and has a good trend.

With the gradual recovery of market confidence index, cotton textile enterprises actively carry out equipment upgrading and pformation, constantly increase the intensity of product mix adjustment, adapt to market changes, and achieve a small increase in output and export growth year-on-year.

Slow recovery of gauze production is still insufficient.

Figures: according to China Textile and textile industry association tracking enterprise data, 1~6 yarn production increased by 0.4% over the same period last year, and fabric production increased by 3.1% year-on-year.

1~6 month cotton textile enterprises start is still not optimistic.

Among them, the average operating rate of tracking large enterprises is 90%, the average operating rate of SMEs is 60% to 70%, and the average operating rate of small cluster enterprises is only 50%.

Analysis: at present, cotton textile enterprises and downstream markets lack confidence in the cotton yarn products market, most enterprises are underemployed, and there are many phenomena in the reduction of sales for quick shipment.

In the current situation, in order to minimize the economic losses caused by the depreciation of yarn and storage, cotton textile enterprises are trying to take measures to reduce inventory as far as possible.

A number of cotton textile enterprises said that at present, enterprises dare not fully open production, how many orders, how many goods they produce, so as not to lose more later.

Figures: 1~6 months of this year, China

Prices are on a downward trend. Yarn and cloth prices are falling along with raw materials such as cotton and synthetic fiber.

As of August 12th this year, 32 cotton combed yarn prices were 24190 yuan / ton, 5.3% lower than the beginning of the year, and 32 cotton fabric prices were 6.13 yuan / meter, down 3.9% compared with the beginning of the year.

Analysis: Cotton target price subsidy policy, yarn and cloth prices continue to fall, pure cotton,

The price of cloth representative varieties has declined, the market wait-and-see sentiment is strong.

Downstream orders are extremely cautious. Cotton textile companies have to cut prices and speed up shipments to avoid risks.

There are also enterprises to increase the use of non cotton fiber in order to avoid the risk of cotton price reduction.

Cotton policy aggravates market panic

Figures: the price of cotton market is basically stable in 1~2 months, and the order of textile enterprises is slowing down due to seasonal factors.

In March, the market rumors that the reserve policy would be adjusted, cotton prices began to loosen, cotton prices rose 3%, domestic and foreign cotton prices narrowed, and textile enterprises orders were mainly replenishment.

In April, the price of reserve cotton was reduced to 17250 yuan / ton. During the same period, the state explicitly cancelled the temporary purchase and storage of cotton and implemented the target price subsidy policy.

Cotton fell sharply over the past 4~5 months, falling more than the decline in cotton prices. The difference between domestic and foreign cotton prices narrowed to 3000 yuan / ton.

Textile enterprises raw materials and yarn inventory devaluation, orders slowed down again, mainly to digest inventory mainly.

In 6~7 months, the price of cotton gradually dropped to the close of the reserve cotton paction price. The decline slowed down, and the cotton prices still dropped considerably, and the price difference rose to 4000 yuan / ton.

Analysis: in the first half of this year, cotton policy has been constantly adjusted, domestic cotton prices are in a downward channel, orders for textile enterprises have been slowing down and prudently, risks arising from orders have been increasing, market sentiment is strong, and panic is aggravating.

Industry deficit increased

Figures: according to the data of China Cotton Association, the main business income of cotton textile industry has decreased by 1.4% over the same period of 1~6 this year, a decrease of 7.98 percentage points compared with that in 2013. The total profit has decreased by 9% over the same period last year, a decrease of 14.04 percentage points compared with 2013, and the total number of employees decreased by 4.4% compared with that of 2013, an increase of 2.09 percentage points over 2013.

The industry deficit has increased. By the end of June, the deficit was about 28.3%, an increase of 8.3 percentage points over 2013.

Analysis: cotton textile industry operation quality and efficiency decline, resulting in cotton textile enterprises increased losses.

Blended cotton yarn and imported yarn continuously compete for the pure cotton yarn market, but also make the domestic cotton yarn sales unable to continue to open, but on the other hand, it is facing shrinking.

Most enterprises reflect that at present, enterprise orders are mainly based on price reduction, mainly to maintain low inventory and reduce depreciation losses.

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Imported cotton decreased by 42.2% compared to the same period last year.

Figures: in the 1~6 months of this year, the total number of imported cotton in China was 1 million 394 thousand tons, a decrease of 42.2% over the same period last year.

From the perspective of the distribution of imported cotton market, the largest number of cotton imports in China this month, 1~6, accounted for 692 thousand tons, accounting for 50% of the total imports, followed by the United States cotton, accounting for 28% of the total imports.

Analysis: from a single month import cotton situation, China's imports of cotton showed a decreasing trend.

The main reasons include two aspects. One is that the import quota of cotton slipped from April has been greatly reduced according to the volume of cotton reserves, and the quota has decreased significantly compared with the same period last year. Two, the difference between domestic and foreign cotton prices has narrowed in the first half of the year.

From the actual situation, the demand for cotton, especially high-grade cotton, is still large in cotton textile enterprises.

Figures: the total import and export trade of China's cotton textiles in the 1~6 months of this year was 17 billion 400 million US dollars, down 5.5% from the same period last year, of which the export volume of cotton textiles was 13 billion 290 million US dollars, down 5.9% compared with the same period last year, and the import volume was 4 billion 110 million US dollars, down 4.2% compared with the same period last year.

2012, 2013 and 2014 1~6 month import and export growth of cotton textiles in China

Analysis: as a whole, China's cotton textile products show a downward trend in the import and export trade of 1~6 this year.

Compared with 2013, the export growth of cotton textiles decreased by about 19 percentage points, and imports dropped by 28 percentage points, which was mainly affected by the low market demand, especially the weakening of terminal demand.

Figures: from the export market of China's cotton textile products, China's exports to Hongkong, China, are relatively low in the 1~6 months of this year, down 37.65 percentage points compared with 2013.

From the perspective of the import market, imports from China, Hongkong, the United States, ASEAN and the European Union have declined in varying degrees this month, and imports from the Japanese market have risen slightly in 1~6 months.

Imports and exports of cotton yarn declined year by year

Figures: in the 1~6 months of this year, China imported 988 thousand tons of cotton yarn, an increase of 2.3% over the same period last year, and the unit price of imports was 3.16 US dollars / kg, down 3.1% compared to the same period last year.

Among them, in the import yarn market, India accounted for 29%, Pakistan accounted for 24%, Vietnam accounted for 17%.

China's total imports of cotton fabrics were 420 million meters in 1~6 this year, down 17.2% from the same period last year, and 7 billion 810 million cotton exports, down 4.7% from the same period last year.

Distribution of China's cotton yarn import market in 1~6 months

Analysis: the adjustment of China's cotton policy is an important factor affecting the import yarn trade.

Due to the abolition of the cotton purchase and storage policy in the new year, the domestic cotton prices are expected to be clear.

Affected by the downward impact of domestic cotton prices, domestic and foreign cotton price difference narrowed narrowly, and domestic yarn prices subsequently fell, so that imported yarn was under pressure, and the heat of imported cotton yarn was weakened by domestic enterprises.

Figures: in the 1~6 months of this year, China has exported 241 thousand tons of cotton yarn, down 9.4% compared with the same period last year, and the price of exported cotton yarn has gone up.