Under The Epidemic, The Recovery Rate Of Textile Enterprises And Weaving Mills Has Reached A New Low.

The Spring Festival of 2020 is probably the most special spring festival that our generation has ever experienced. An outbreak has disrupted everyone's footsteps. In late 2019 or even late January 2020, few people would expect the super black swan to fly out of the Spring Festival during the Spring Festival. COVID-19 Under the influence of the epidemic, the enterprises are delayed. Recently, the whole cotton yarn factory is still waiting to resume work. There is no quotation for the time being. According to the telephone response of some cotton mill workers, the price quote is more than before. As of February 13th, the domestic C32S average price was 20482 yuan / ton, unchanged from last week.

From the national yarn and grey fabric load, the start-up rate has dropped to a new low. The boot rate of grey cloth is even close to completely closed. Although some enterprises have started work these days, the rate of start-up has not yet reached the level before the festival, which is still lower than the valley value of the Spring Festival in recent two years. As of February 13th, the load index of national yarn and grey fabric start-up was 23.4% and 19% respectively. From the results of the survey, the difficulties encountered in spinning enterprises or weaving factories are very similar.

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First, most of the start-up enterprises are large enterprises, but the start-up rate of factories is relatively slow, mainly because of the problem of workers returning to work. Especially for the field workers, it is necessary for the employees to conduct isolation observation. Small and medium-sized enterprises have not resumed their jobs. A lot of enterprises that are preparing for the resumption of work now say that the government documents are strict in the resumption of work. After reworking, there are mandatory provisions for disinfection and masks storage in the factory area. At the same time, the government will conduct on-site inspections of such enterprises, and only those who meet the requirements can resume their work.

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Two, at present, besides the difficulty of guarding against the seven emotions, the logistics problem is still quite grim. Take Shaoxing as an example, the local logistics company postponed its working hours until February 17th, and traffic control and control such as high speed are still very strict. Even if the enterprises fail to arrange delivery at present, the pressure of inventory and capital will increase. Another thing I heard most from my classmates is that although the consumption of materials has increased during the Spring Festival, it has always been the most celebrated Spring Festival. After all, a pajamas can wear a long holiday. This shows that the downstream sales pressure is unprecedented huge, many clothing stores have lost their blood, 70 percent off, 80 percent off, even if they have to sell fractures, after this season, all the progress of the goods will have to fight.

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Judging from the cotton inventory of textile enterprises, many large and medium sized textile enterprises stock more than 1 and a half months to two months, a small number of textile enterprises raw materials inventory more, in 3-4 months, some large and medium-sized textile enterprises due to lack of funds, there is no time to replenishment, and other reasons, raw material inventory is in a low state, in about 1 months. The raw material inventory of small and medium sized textile enterprises is mainly from 20 days to 1 months, and most of the raw material stocks of small textile enterprises are below 20 days. At present, textile enterprises are not willing to purchase cotton raw materials. The main reason is the uncertainty of the starting time and the recovery time of the industry chain. Under the situation of low recovery of the overall industry chain, many textile enterprises are worried about domestic demand and external demand, and are cautious about the market outlook.

As of February 13th, the spot price of FCY Index C32S was 20518 yuan / ton, unchanged from last week. Domestic quotas have basically maintained their pre - Holiday levels due to sharp reductions in volume. From foreign dollar quotations, many countries have dropped to varying degrees. It has to be said that the impact of this epidemic on the economy has spread to the whole world. As China is a big manufacturing country, the outbreak of the outbreak has caused a devastating blow to the countries that are heavily dependent on China's raw material import. Kampuchea Labor Department spokesman Hensol told Reuters before: "if the factory does not know when they will get raw materials from China in the second week of March, they may stop working for 2-3 weeks." Four factories have expressed their concerns to the government. The four factories employ about 3000 employees.

On the other hand, according to customs statistics, in December 2019, China's cotton yarn imports 170 thousand tons, an increase of 6.25%, an increase of 9.4% over the same period last year. In December, the export volume of China's cotton yarn was 28 thousand and 500 tons, an increase of 1.06% compared to the same period, a decrease of 7.6% over the same period last year. So far, 1-12 months in 2019, China's cotton yarn imports totaled 1 million 950 thousand tons, down 5.4% from the same period last year. In 2019, the total export volume was 375 thousand tons, down 6.7% from the same period last year. However, it is important to note that due to the statistics of the customs, there may be some statistics on the import of Pakistan's cotton yarn this year, so the actual import volume is greater than the published data of the customs.