Textile Market Survey Results Released In Early 2020

In early January 2020, China's cotton network launched the "textile market survey questionnaire at the beginning of 2020". As of mid January, nearly 100 survey results were received. According to the questionnaire, the demand for textile market has picked up slightly in recent years, and textile enterprises have made up a small amount of raw materials before the Spring Festival. The market has different opinions on the next trend of textile market. Half of the enterprises are cautiously optimistic.

The enterprises involved in the survey cover 15 provinces and autonomous regions such as Shandong, Henan and Jiangsu, and their capacity ranges from 30 thousand to 200 thousand spindles.

　　 From the survey point of view, the difference between the start-up and operation of textile enterprises is relatively large. Most enterprises operate well, and a small number of enterprises have low start-up rate. According to the survey data, 50% of the enterprises involved in the survey started at 80%-100%, 27% of the enterprises started at 60%-80%, and more than 10% of the enterprises started to operate at 40-60%; the overall operating rate of the enterprises involved in the survey was 43%, and the operating rate of 80%-100% accounted for 39%. The operating rate is 40%-60%, accounting for 13%.

　　 In 2019, the textile market was sluggish, the market shuffling intensified, and some enterprises closed down. According to the enterprises surveyed, the proportion of enterprises shutting down in the area after the Spring Festival is 10%, 20% and 30%.

　　 The survey shows that the raw material inventory and raw material procurement rhythm of textile enterprises are cautious. By the middle of January, 34% of the raw materials storehouse had been kept for 15-30 days, 28% of the raw materials were kept for 1-2 months, 25% of the raw materials were kept for 7-15 days, less than 2 months for raw material storage, 47% of the enterprises chose a small amount of raw materials to stock up, and after the Spring Festival started operation, 27% of the raw materials of the enterprises were kept in line with the previous years, and they did not plan to stock up.

　　 The inventory control of finished products finished in a month is the most common. The finished products are mainly processed pure cotton yarn, and the sales of 32-40 conventional yarns are relatively smooth. Data show that finished product inventory in 15-30 days, 7-15 days of enterprises accounted for 37%, 34%. More than a month accounted for 17%, and no inventory accounted for 10%.

　　 The survey shows that textile market demand is not yet clear. According to the current order, enterprises think that demand rebounded slightly, and the strength was limited, accounting for 41%. The demand was still declining, the signs of warming were not obvious, accounting for 23%, and the demand for obvious improvement was only 9%, and 26% of the enterprises were still in a state of confusion.

　　      The survey shows that the main problem facing the textile enterprises is insufficient orders. Enterprises are still subject to a series of problems such as rising labor costs, recruitment difficulties, environmental protection, competition of imported cotton yarn, and so on.

　　 The enterprises involved in the survey have different opinions on the future direction of the development of the textile industry. More than 50% of enterprises are cautiously optimistic. They believe that the most difficult period has passed, the industry will grow at a low speed in the future, and 27% of enterprises are pessimistic. Quite pessimistic and optimistic enterprises are in the minority.