Cotton Textile Situation: Reduction Of Production, Reduction Of Stock, Positive Adjustment And Development.

Tracking enterprise data shows that the production and marketing situation of cotton textile enterprises in July continued to be sluggish, and the raw material purchase volume, consumption and inventory volume of cotton textile enterprises continued to decline, and the yarn and cloth output decreased.

Raw material purchase, inventory ring down narrowed cotton reserves, imports of cotton procurement increased by an annulus

July 2019 tracking enterprise raw materials procurement decreased by 1.27%, the decline narrowed from last month, with the Sino US trade friction continues, the original off-season enterprise orders situation is more severe, enterprises are still mainly to digest inventory, prudent procurement.

Raw material cotton purchasing volume decreased by 0.7%, the decline was 3.5 percentage points slower than the previous month. In July, domestic standard cotton prices were basically flat compared with last month, 246 thousand tons of cotton stored in the month, a significant increase of 95 thousand tons compared with June, and imports of raw cotton increased by 14.83% compared with June. In July, the international cotton price A index averaged 75.54 cents per pound per month, a decrease of 2.7% compared with the same month. According to the data of the General Administration of customs, China imported 164 thousand tons of cotton in July, an increase of 4.5% over the month.

The purchase amount of non cotton fiber in raw materials decreased by 2.42%. At the beginning of July, the price of polyester staple fiber and viscose staple fiber rebounded periodically, and fell again in the middle of the month. Due to price fluctuations, it is difficult to judge the later trend and reduce the purchase and use of enterprises.

Tracking data in July 2019 showed that raw material inventories of cotton textile enterprises decreased by 2.56% compared with the previous month. As of July, tracking enterprise raw materials inventory has been down for four consecutive months, the overall is in and will maintain low inventory state. Raw material cotton inventory decreased by 4.13%, and non cotton fiber inventory increased by 2.50%. Compared with the same period last year, stocks of raw cotton and non cotton fibers in raw materials and raw materials decreased by two digits, at a historically low level.

Production and sales of gauze decreased year by year, and sales and sales declined year by year.

Tracking enterprise data shows that cotton textile enterprises continue to slow down the production situation, from the cumulative year-on-year situation, 1-7 months of yarn production decreased by 3.83% year-on-year, the decline narrowed from last month; cloth production year-on-year decline of 5.29%, the decline was basically the same as last month. In July, yarn production and fabric production decreased. As at the end of July, the utilization rate of spinning and weaving equipment was about 90% ~ 93%, compared with the same period last year, it decreased by 2~3 percentage points.

In the 1-7 month, the total electricity consumption decreased by 3.76% compared with the same period last year, and the decline slightly increased from last month. In July, China and the United States agreed to restart economic and trade consultations. In August, US President Trump announced that it would levy a 10% tariff on China's $300 billion export to the United States in September 1st, involving many kinds of products in the textile and garment industry, and the market confidence was once again affected. In such a situation, enterprises should make positive adjustments on the one hand and change the space with time, and make changes for long-term sustainable development.

In 1-7 months, the sales volume of the yarn decreased by 6.85% compared with the same period last year, and the sales volume of the fabric decreased by 4.49% compared with the same period last year. In July, yarn sales decreased by 4.82%, and the price of imported yarn continued to decline. In the same month, the import of cotton yarn was 150 thousand tons, and the ratio decreased by 8 thousand tons. The sales volume increased by 0.18%.

Tracking enterprise data shows that the main business revenue in 1-7 months decreased by 1.44% year-on-year, a slight increase from last month, and the delivery value of exports decreased by 4.35% compared with the same period last year. By the end of July, the production and sale rate of gauze products decreased by 0.9 percentage points compared with the same period last year. The yarn inventory increased by 1% and the inventory inventory ratio decreased by 1.52%. Downstream demand is low, orders are small and require fast delivery, so that enterprises minimize inventory or even basically keep zero inventory.

Cluster production continued to slow down, and the number of employees declined.

In 1~7 months, the production of cluster enterprises continued to slow down, and the average operating rate of tracking enterprises was around 80%. The total number of enterprises in the cluster decreased slightly, and the average number of employees declined.

Tracking cluster yarn production capacity, output and cloth production decreased year by year, cloth production capacity grew year on year. In 1~7 months, the tracking capacity of cluster spinning decreased by 0.9% compared with the same period last year, and the output of all kinds of yarns dropped by 7.1% compared with the same period last year. The number of looms increased by 1.7% compared with the same period last year, and the total output of fabrics decreased by 11.4% compared with the same period last year.

From the main economic indicators, the main business revenue and profit of cluster enterprises decreased year by year. In the 1~7 month, the main business revenue and profit of cluster enterprises decreased by 5.9% and 12.7%, respectively, of which the number of enterprises decreased by 3.1% and 4.5% 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.