April Cotton Textile Production And Sales Slowdown, Product Inventory Increased

In April 2019, compared with March, raw material purchasing, consumption and inventory of cotton textile enterprises all decreased, yarn and cloth output and sales decreased, yarn and cloth finished products inventory increased.

Raw material procurement and inventory decline

April tracking enterprise raw material procurement decreased by 14.76%, raw cotton purchase volume decreased by 15.18%, mainly due to the relatively large inventory at the end of last month, domestic cotton reserves will start in May, cotton textile enterprises Procurement slowdown, non cotton fiber purchasing volume decreased by 13.82%, April polyester staple fiber, viscose staple fiber prices loose, average monthly price decreased by 0.33%, 0.92% respectively, cotton textile enterprises cautious purchase.

In April, raw material inventories decreased by 5.10%, of which raw cotton inventories decreased by 4.46%, and non cotton fiber inventories decreased by 7.14%. Textile enterprises controlled inventory at a low level, and bought with them.

Cotton textile production and sales have slowed down

The production situation of cotton textile enterprises has slowed down. Judging from the cumulative year-on-year situation, the yarn production in 1-4 months decreased by 0.32% compared to the same period last year, and the total output of cotton textile products decreased by 2.15% compared with the same period last year.

Overall, cotton products are not performing well.

The ratio of yarn production and cloth output decreased in April.

The main reason is that the downstream market demand is weak.

The average sales volume of yarn and cloth decreased considerably in April.

The value added tax rate adjustment in April 1st was affected by this effect. Sales volume increased significantly last month. The larger base last month led to a marked decrease in sales volume this month.

In terms of price, except for the prices of polyester products basically stable, the prices of pure cotton and viscose products were all lower than the average, and the average monthly price of viscose yarn decreased by nearly 4%.

In 1-4 months, yarn sales volume decreased by 3.90% year-on-year, extending the trend of year-on-year decline last month, with a slight increase in sales and 1.89% year-on-year decline in sales volume.

In April, the yarn and cloth inventory increased by 8.10% and 2.07% respectively.

Recently, with the gradual escalation of Sino US trade war, the United States Tariff list involves more products in the textile industry, and there are many uncertainties in the market, which will bring greater challenges to the production and operation of cotton textile enterprises.

Since mid May, the market price of domestic yarn and cloth products has dropped. Textile enterprises should pay close attention to the relevant information and give full attention to it, arrange production according to the situation and control inventory rationally.

Cluster operation is basically stable.

In 1~4 months, the production and operation of clustered enterprises were basically stable, and the average operating rate of the tracking enterprises was around 90%, which was basically the same as last month.

The total number of enterprises in the cluster decreased slightly, and the average number of employees declined.

Tracking of cluster yarn, cloth production and output increased.

In 1~4 months, tracking cluster spinning capacity increased by 0.4% over the same period last year, and the output of all kinds of yarns increased by 0.8% over the same period last year. The number of looms increased by 1.8% compared to the same period last year; the total output of fabrics increased by 2.2% over the same period last year.

Judging from the main economic indicators, the development of cluster enterprises is basically stable.

In the 1~4 month, the main business revenue and profit of cluster enterprises increased by 4.1% and 2.4% respectively, with the growth of 4.3% and 3.6% respectively.

The data of this report are all derived from the China Cotton Textile Industry Association, involving more than 200 cotton textile enterprises and 15 industrial clusters nationwide. The total capacity accounts for more than 70% of the total cotton textile industry in the country, and is representative of the industry.

This report is strongly supported by the Zhengzhou Mercantile Exchange.