Cotton Textile Situation: Strengthen Confidence And Actively Cope With The Increase Of Gauze Production.

In August, under the continuous downturn of the market, textile enterprises responded positively and constantly adjusted, and finished product sales prices continued to decline, and inventory pressure remained large. The output of yarn and cloth increased slightly in the same month.

Raw material purchase and inventory increase

In August 2019, tracking the purchase of raw materials increased by 4.14%, the first time in four consecutive months. The raw cotton purchase volume of raw materials increased by 5.18%, and the purchase volume of imported cotton in the raw cotton decreased by 2.2%. The price difference between domestic and foreign cotton was 1200 yuan per ton, narrowing slightly compared with July. According to customs data, China imported 90 thousand tons of cotton in August, a sharp decrease of 45%. The purchase amount of non cotton fiber in raw materials increased by 1.98%. In August, the average monthly price of polyester staple fell by about 10%, which rebounded in the middle of the year. Viscose staple fiber prices continued to decline, the average monthly price fell 600 yuan per ton.

Tracking raw material inventory of enterprises increased by 1.49%, raw material cotton inventory increased by 0.72%, and non cotton fiber inventory increased by 3.97%. The increase of raw material stock is mainly driven by non cotton fiber. In the survey, we know that due to the relatively sufficient resources in the cotton market, the reserve cotton is still being put into operation, and the stock of raw cotton is basically maintained for 20~30 days. Since September, domestic cotton prices have risen, the price of polyester staple fiber has been rising rapidly by the impact of crude oil prices, and raw material stocks of textile enterprises have remained basically stable.

Gauze output grew for the first time after a continuous decline.

Tracking enterprise data shows that the production situation of cotton textile enterprises is basically stable compared with that of last month. From the cumulative year-on-year situation, the production of yarn in 1-8 months decreased by 5.34% compared with the same period last year, and the output of cloth production decreased by 5.17% year-on-year. In August, yarn production and cloth output increased marginally, with a growth rate of 1.34% and 1.80% respectively, and for the first time in the four consecutive months. With the continuous trade friction between China and the United States, textile enterprises have made an objective analysis of the market situation, adjusted their thinking and responded positively, and achieved certain results. By the end of August, the utilization rate of spinning and weaving equipment was 93% and 90% respectively, compared with the same period last year, which decreased by 2~4 percentage points respectively. In the 1-8 month, the total electricity consumption decreased by 2.60% compared with the same period last year, and the decline narrowed slightly from the previous month.

Tracking enterprise data shows that in 1-8 months, sales of yarn decreased by 7.96% compared with the same period last year, while sales of cloth decreased by 4.58% year-on-year. In August, yarn sales increased by 1.67%, and cloth sales decreased by 2.14%. By the end of August, the production and sales rate of gauze products had been rebounded from July, which was 0.5 percentage points lower than that of the same period last year. In the 1-8 month, the main business income decreased by 2.66% year-on-year, and the decline was widened from the previous month, mainly due to the fall in sales volume. The value of export delivery decreased by 7.29% compared with the same period last year.

As of the end of August, yarn inventory increased by 0.93%, and the inventory of inventory increased by 1.17%. According to investigation and study, most of the enterprises visited are in a month or so, and stocks are few. Some of the enterprises with insufficient orders make about half of their capacity to produce conventional products, with stocks ranging from 20 days to 40 days.

Cluster production continues to slow down

In 1~8 months, the production of cluster enterprises continued to slow down, and the average operating rate of tracking enterprises was around 85%. The total number of enterprises in the cluster decreased slightly, and the average number of employees declined.

Tracking of cluster yarn, cloth production decreased compared to the same period, yarn and cloth production capacity grew year on year. In 1~8 months, the tracking capacity of cluster spinning increased by 0.5% compared with the same period last year, and the output of all kinds of yarns decreased by 15.5% compared with the same period last year. The number of looms increased by 1.7% compared to the same period last year, and the total output of fabrics decreased by 17.6% 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 1~8 month, the main business revenue and profit of cluster enterprises decreased by 10.9% and 12.7%, respectively, of which the number of enterprises decreased by 3.5% and 5.8% 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.