Cotton Textile Enterprise Survey Report (June 2019): Textile Market Maintains Weak Yarn Prices Continue To Fall

Respondents: cotton textile enterprises in Xinjiang, Shandong, Hebei, Henan, Jiangsu, Zhejiang, Hubei, Anhui, Jiangxi, Shanxi, Shanxi, Shanxi and other provinces and autonomous regions.

In June, the textile market remained weak, and the cotton yarn inventory remained high. Most of the liquidity was tight, and the operating rate of the spinning mill was low. The market was slightly improved in late June, but the order was still insufficient. According to the China Cotton warning information system, the survey of 90 fixed-point textile enterprises in the country showed that raw material inventories of textile enterprises decreased, textile production decreased, yarn inventory was basically the same as last month, and fabric storage increased.

1. The decline in textile production

In June, the output of textiles decreased compared with that of last month. According to the survey, yarn production decreased by 3.7% in June, down 4.8% from the same period last year, of which cotton yarn accounted for 69.7%, a decrease of 0.5 percentage points from the previous month, and the proportion of blended yarn and chemical fiber yarn was 30.2%, an increase of 0.5 percentage points from the previous month.

Cloth production decreased by 3.3%, down 4.1% compared with the same period last year, of which cotton percentage was 0.8 percentage points lower than that of last month. Yarn sales rate was 70.8%, an increase of 0.2 percentage points from last month.

Yarn inventory of textile enterprises is 30.27 days, 0.33 days less than last month. Grey cloth inventory for 34.36 days, an increase of 0.26 days from last month.

Two, both inside and outside yarn prices fell.

Cotton prices continued to drop inside and outside this month. According to the survey, the average price of 32 domestic pure cotton yarn in June was 21907 yuan / ton, down 783 yuan / ton, or 3.4%, down 1946 yuan / ton compared with the same period last year, or 8.16%; the average monthly price of imports of 32 pure cotton yarn was 22036 yuan / ton, down by 485 yuan / ton, or 2.15% yuan, down by 1918 yuan / ton compared with the same period last year. Because of the high inventory of cotton yarn, spinning enterprises are mainly going to inventory this month, and the foreign quoted prices are still falling.

Three, raw material inventory decline

In the latter part of this month, Zheng cotton futures rose slightly, and played a positive role in the spot market. But the pressure of spinning enterprises' funds was bigger. As of June 30th, the stock of cotton in the textile industry was 688 thousand tons, down 63 thousand and 600 tons from the end of last month, down 219 thousand and 600 tons compared with the same period last year. Among them: 49% of enterprises reduce cotton inventories, 10% increase inventories, and 41% remain basically unchanged.

The cotton structure of textile enterprises is relatively stable.

1. textile enterprises used Xinjiang cotton accounted for 82.7% of the total cotton consumption, an increase of 2.7 percentage points from the previous month, an increase of 7.14 percentage points from the same period last year. Among them, the proportion of Xinjiang cotton produced by the reserve wheel was 19.45%, and the proportion of Xinjiang cotton accounted for 80.55% this year.

2. the proportion of textile enterprises using real estate cotton is 6.8%, which is 1.4 percentage points lower than that of last month. Among them: the proportion of the real estate cotton in the reserve wheel is 24.68%, and the proportion of real estate cotton in this year is 75.32%.

3. the proportion of imported cotton used by textile enterprises was 10.5%, down 1.3 percentage points from the previous month, down 3.28 percentage points from the same period last year.