Textile And Clothing Consumption Enters The Cold Winter Period

Both inside and outside consumption of textiles and clothing have declined sharply. On the one hand, the domestic and global economic situation is not good and demand is sluggish, but also because of fierce competition in textile and clothing exports from India and Vietnam.

For example, from 1 to November this year, Vietnam's textile and clothing exports to the United States increased by 11.7% over the same period last year, and the two countries signed the TPP agreement. The export tax rate of Vietnam to the US will drop to zero in the future, and the India government reformulated the commodities in November.

The standard is to stimulate exports, and does not rule out a free trade agreement in the future.

The situation of domestic textile enterprises can be described as "housing leakage is subject to continuous rain."

Since 2010, China's clothing production and textile clothing, clothing industry sales revenue, profit growth year-on-year growth indicators and other indicators continued to decline, and finished goods inventory rose sharply, the stock value from early 2010 of 42 billion yuan, an increase of nearly 1.5 times, to the end of October this year reached 103 billion 500 million yuan.

Exports, China after 2011

The growth of export volume slowed down. In 2015, except for February, the other months showed a negative growth year-on-year, and the proportion of chemical fiber clothing increased, the cotton knitted garments increased negatively and the growth rate of cotton knitted garments was far behind that of the chemical fiber woven garments.

In short, the cotton demand side problem is serious, and it may continue to deteriorate in the later stage; and the "Big Mac" of the supply side, the digestion of state cotton and cotton, in the final analysis, will depend on the improvement of downstream demand.

Before the economy gets out of the bottom, the textile industry will probably only be able to preserve its strength through industrial upgrading and structural adjustment.

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With the continuous snowfall in mid December of Xinjiang, the price of long staple cotton has dropped to varying degrees, which has affected the enthusiasm of cotton enterprises, and the Xinjiang long staple cotton market has started to fall again.

According to Uncle Lee, a cotton grower who planted long staple cotton in Awati, cotton farmers in the local purchase of long staple cotton stopped collecting after a large snowfall last week.

Before closing, the average price is still 7.9-8.2 yuan / kg, but last Friday (18) the early quality seed cotton inventory was pulled to the ginning factory, the price was only 7.6-7.8 yuan / kg.

At present, the long staple cotton market is in the closing stage. The cotton seeds of cotton farmers in Awati County of Akesu are not in stock. The price of seed cotton is decreasing or the cotton farmers are speeding up the sale.

Judging from the current processing capacity, the number of lint cotton in the territory has been over 85 thousand tons, and the total amount of resources that has not yet been processed will be significantly higher than the annual demand of 7-8 tons.

If the supply exceeds demand, it is difficult to sustain the price of long staple cotton. Will the long staple cotton go on the back of corn next year? Or with the adjustment of the production structure of the textile enterprises, the demand for long staple cotton can also rise. The market is the best examiner and the most cruel witness.

At present, although the sale of long staple cotton seed cotton is close to 90%, the sale of long staple cotton lint is not satisfactory recently.

In the early days of Akesu, individual cotton enterprises received large orders, and the price of long staple cotton was raised to a high level, which resulted in higher cost of processing long staple cotton by local cotton enterprises.

At present, the order status of high count yarn in downstream cotton enterprises is not good enough, and the enthusiasm of replenishment is insufficient. The price of some long staple cotton has fallen to the cost of cotton enterprises.

Under the target price subsidy policy and the Xinjiang government's encouragement to grow, this year's long staple cotton planting area is close to 2 million mu.

According to statistics, the average selling price of long staple cotton seed cotton in this year is around 7.9 yuan / kg, plus the subsidy of 1.3 times of upland cotton, the average price can still touch 10 yuan / kg line.

The yield of long staple cotton was significantly higher than that of upland cotton, and cotton growers in 2016 grew or grew continuously.