Cotton Textile Enterprises Survey Report: Market Overall Dull Yarn Inventory Decline (July 2019)

Project commitment: Beijing cotton outlook Information Consulting Co., Ltd.

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

In July, the textile market did not recover significantly. The capital pressure of enterprises is large, the subsequent orders are not enough, and the operating rate remains at a low level. According to the cotton warning information system of China, more than 90 fixed-point textile enterprises nationwide have shown that raw material inventory of textile enterprises has increased slightly, textile production has increased slightly, and yarn and cloth inventory has declined.

1. Textile production increased slightly.

In July, textile production increased slightly compared with the previous month. According to the survey, yarn production increased by 2.1% in July, down 4.9% from the same period last year, of which 70.1% of pure cotton yarn accounted for 0.4 percentage points from the previous month, and the proportion of blended yarn and chemical fiber yarn was 29.9%, a decrease of 0.4 percentage points from the previous month.

Cloth production increased by 1.9%, a year-on-year decrease of 4.5%, of which pure cotton cloth accounted for 0.7 percentage points from the previous month. Yarn sales rate of 71.1%, an increase of 0.3 percentage points from last month.

Yarn inventory of textile enterprises was 29.12 days, down 1.15 days from last month. Grey cloth inventory for 31.53 days, 2.83 days less than 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 July was 21736 yuan / ton, down 171 yuan / ton from last month, or 0.78%, down 2098 yuan / ton compared with the same period last year, or 8.8%; the average monthly price of imports of 32 pure cotton yarn was 21666 yuan / ton, down by 370 yuan / ton, or 1.68% yuan, a decrease of 2528 yuan / ton compared with the same period last year. Spinning enterprises have greater pressure on capital and still rely mainly on outgoing stock, and prices continue to decline, but the decline has eased.

Three, enterprise raw materials inventory rise

In the latter part of this month, Zheng cotton futures continued to decline, and some textile enterprises began to replenishment of raw materials inventory, and raw material inventories increased slightly. As of July 31st, the stock of cotton in the textile enterprises was 705 thousand and 500 tons, an increase of 17 thousand and 500 tons from the end of last month, representing a decrease of 89 thousand and 900 tons compared with the same period last year. 24% of them reduced cotton stocks, 34% increased inventories, and 42% remained basically unchanged.

The cotton structure of textile enterprises is relatively stable.

1. textile enterprises used Xinjiang cotton accounted for 83.4% of the total cotton consumption, an increase of 0.7 percentage points from the previous month, an increase of 5.84 percentage points from the same period last year, of which 21.35% of Xinjiang cotton was reserved and 78.65% of Xinjiang cotton accounted for this year.

2. the proportion of real estate cotton used by textile enterprises is 10.1%, which is 0.4 percentage points lower than that of last month. Among them, reserve real estate cotton accounted for 28.49%, and real estate cotton accounted for 71.51% this year.

3. the proportion of imported cotton used by textile enterprises was 6.5%, a decrease of 4 percentage points from last month, a decrease of 2.11 percentage points over the same period last year.