May 2018 China Cotton Textile Industry Boom Report

In May 2018, China's cotton textile prosperity index (50.21) increased by 0.98 compared with April, which is in line with expectations. In May, the spot price of cotton futures rose rapidly, the price of gauze products increased, and the turnover rate of reserve cotton was high. Under the support of the original orders, the enterprises are producing normally, the yarn sales are more popular, and the grey fabric market is relatively light. In June, in order to stabilize the domestic cotton market, relevant departments issued relevant policies one after another, and cotton prices began to fall. However, due to the market downturn, enterprise orders declined, product inventories began to increase, the cotton textile prosperity index in June is expected to stabilize slightly.

Raw material purchase price index

In May, the raw material purchasing price index was 49.33, up 1.57 compared with April, which is in line with expectations. In May, the market expects the tight global supply of cotton next year and the tight supply and demand situation of domestic cotton after the end of the cotton spinning. With the weather speculation and other factors, the domestic and foreign cotton futures prices have risen sharply, driving cotton spot prices up, and the turnover rate of cotton reserves has continued to rise, and the average spanaction price is also rising. In terms of chemical fiber staple, the price of viscose staple fiber began to rebound due to soaring cotton prices. Polyester staple fiber was affected by the fluctuation of PTA price of crude oil and polyester raw materials, and the price rose first and then fell. In May, the CotlookA index folded 1%, the tariff average price was 14737 yuan / ton, the growth rate was 0.63%, the average price of domestic 3128B grade spot cotton was 15826 yuan / ton, the chain growth was 1.85%, the mainstream viscose fiber average price was 14106 yuan / ton, the chain ratio decreased 1.11%; the 1.4D direct spinning polyester short average price was 8917 yuan / ton, the growth rate 1.12%. In order to stabilize the domestic cotton market and guarantee the need for cotton enterprises to use cotton, the relevant state departments have issued the policy of adjusting the output of cotton reserves and issued a sliding quota policy for cotton imports. Cotton prices have begun to fall, but they remain high. The price of viscose staple fibers keeps rising. In June, the index of raw materials purchasing prices continued to rise.

Raw material inventory index

In May, the stock index of raw materials was 50.11, up 2.86 compared with April, which is in line with expectations. According to tracking enterprise data, in May, the raw material inventory increased by 3.93%. Among them, the stock of raw cotton increased by 5.01%, while the non cotton fiber inventory increased by 0.88%. The main reasons are as follows: first, the market is looking up for medium and long term cotton prices; enterprises increase the stock of raw cotton; two, the quality of cotton has a large gap, and enterprises increase the stock of high-quality cotton; three, the differentiated products market is better, so as to ensure the stability and continuity of production, some enterprises increase the stock of chemical fiber staple. In June, under the stimulation of relevant policies, cotton futures prices dropped, and the cotton turnover rate dropped, but the cotton price in the later stage still had the possibility of rising. Survey data show that about 30% of the enterprises hold a wait-and-see attitude, raw material inventory within a month, the raw material inventory index in June is basically flat or stable in May.

Production index

The production index in May was 50.88, down 0.52 from April, lower than expected. In May, the production of cotton mill was still busy, and the turnover of employees was small. The grey fabric market has seen signs of decline, and the opening rate of textile factories has dropped. Some factories have indicated that the reduction of orders is earlier than the previous period, resulting in a decline in May production index compared with April. Tracking enterprise data shows that yarn production increased by 2% in May, and cloth production decreased by 3.98%. Investigation and understanding, in June the production of differentiated products of enterprise orders are still more, some long even to the end of October, compared to the production of conventional products enterprises follow-up orders slightly less, gray fabric market continued weak basis, production index continued to decline.

Product sales index

In May, the product sales index was 49.62, an increase of 0.88 compared with April, which is in line with expectations. In May, the conventional cotton yarn delivery atmosphere was better. In mid and late days, prices also rose with cotton prices, while the sales of grey fabrics decreased compared with that in April. In May, the average price of 32 Cotton Combed Yarns was 23538 yuan / ton, an increase of 1.77%. The average price of pure cotton grey fabric (32*32 130*70 2/1 47 "twill) was 5.72 yuan / m, which was unchanged from April. Tracking enterprise data shows that yarn sales increased by 1.23% in May, and sales volume decreased by 7.05%. At present, under the support of the original orders, the yarn sales volume has changed little, and the price has a stable probability. But the subsequent order is insufficient, the gray fabric market is weak, and the sales are not good, and the sales index of the products in June dropped slightly.

Product inventory index

In May, the product inventory index was 51.81, which rose by 0.99 compared with 4, which is in line with expectations. 5 in late mid month, under the influence of price upgrading, yarn delivery improved and inventory level continued to decline. Weaving factory early shipment is still available, and then with the market gradually fading, stock accumulation slightly, but has not yet put too much pressure. Tracking enterprise data shows that yarn inventory fell 4.34% in May, and cloth inventory grew by 1.10%. Investigation and understanding, at present, the yarn stock of enterprises continues to remain low, slow delivery of gray cloth, increased inventory, June product inventory index declined.

Business index

In May, the business index was 50.2, an increase of 0.87 compared with April, which is in line with expectations. In May, the spot price of cotton increased, the price of gauze increased, the sales of enterprises were good, and the main business revenue kept growing. Tracking enterprise data shows that in May, the main business income increased by 6.79% over the same period, and the growth rate was 2.63 percentage points higher than that in April. In June, although the issuance of related policies such as reserve cotton and quota stabilized the domestic cotton prices, the Sino US trade war resumed. About 90% of cotton textile enterprises expected the spot price of cotton in the late stage (3128 grade cotton) to be over 16000 yuan / ton, and about 70% of the enterprises said that the Sino US trade war would have certain impact on the enterprise and reduce the efficiency of the enterprise. The business index declined in June.

Description: cotton textile in China industry The prosperity index was collected from nearly 200 key cotton spinning enterprises in the country. Through weighted calculation of several main indicators, when the index is higher than 50, it indicates that the cotton textile industry is in a better position, and less than 50 indicates that the economic level is not good enough.