January 2020 China Cotton Textile Industry Boom Report

In January 2020, China's cotton textile prosperity index was 45.03, down 2.24 compared with December. In the first ten days of January, the market confidence was restored by the good news from the Sino US trade dispute. Most of the enterprises began to slow down due to the approaching of the Spring Festival. Most of the enterprises' production rhythm began to slow down. The emphasis was mainly placed on sales and recovery accounts. Production procurement ended temporarily. In the middle and later stages, with the downstream entering and finishing stage, the market trading atmosphere was light, and most of the small and medium-sized enterprises chose to leave in advance. On the whole, the outbreak of the new crown is basically overlapped with the Spring Festival. The epidemic has little direct impact on the cotton textile industry in January, but it has a blow to the confidence in the operation in February and the whole year. Especially after being included in the global security emergency, some enterprises believe that the export of China's terminal textiles will be affected for a period of time.

The spread of the new crown pneumonia has disrupted the business plan after the Spring Festival. Most enterprises choose to postpone the resumption of work after considering the impact of the epidemic on personnel and logistics. In order to help SMEs to resume work and resume production and tide over difficulties, the Ministry of industry and information issued the notice on coping with the outbreak of new coronavirus pneumonia on the 10 day of February to assist SMEs in resuming work and resuming production to tide over difficulties. It clearly will take full efforts to ensure orderly resumption and resumption of production, further strengthen financial support for SMEs, and further strengthen financial support for SMEs, 6 aspects 20. The measures will help the small and medium-sized enterprises to strengthen their confidence and strengthen measures so as to achieve orderly return to work and resume production and tide over difficulties.

Raw material purchase price index

In January, the raw material purchasing price index was 50.03, up 3.54 compared with December. The current price of cotton at home and abroad this month showed a general upward trend. In the first ten days of January, the tension between the United States and Iran was tight, and the risk of risk aversion continued to rise, triggering global exchange rate fluctuations. In the middle of the month, China and the United States formally signed the first stage economic and trade agreement in Washington, D.C., which brought market optimism and cotton prices to maintain their previous level. Subsequently, the price of new coronavirus pneumonia affected, and domestic and foreign cotton prices began to weaken. Specific data, CotlookA index average 79.07 cents / pound, rose 3.24 cents / pound; domestic 3128B cotton spot average price of 13634 yuan / ton, rose 658 yuan / ton. As for the reserve cotton, due to the strong spot price of cotton at the beginning of the year, the maximum price limit for the bidding is lower than that of the cotton traders.

Chemical fiber prices rose slightly this month, and textile enterprises replenishment on demand. According to the varieties, viscose staple fiber keeps a slight pullback trend. Polyester staple fiber is affected by the price of raw materials, and the price rises first and then falls. Specific data, mainstream viscose fiber average price of 9488 yuan / ton, a decrease of 304 yuan / ton; 1.4D direct spinning polyester staple average price of 7041 yuan / ton, up 113 yuan / ton.

Raw material inventory index

In January, the stock index of raw materials was 49.41, up 1.77 compared with December. Since December 2019, the price of raw materials has continued to rise and substantial progress has been made in the Sino US trade disputes and other good news. The industry is expected to improve, and the willingness to raise stocks will be enhanced. But with the continuous development of the epidemic, the market atmosphere is cold, the pace of production of textile enterprises is slowing down, and the stock of raw materials has increased. Tracking enterprise data shows that raw material inventories increased by 5.06% in January, of which raw cotton inventories increased by 3.63%, and chemical fiber staple inventories increased by 12.16%. Due to the early spring festival this year, considering the impact of the epidemic, workers returning home and downstream vacation, the small and medium-sized enterprises started to leave in January 20th. After the Spring Festival, the Spring Festival holidays will be extended in many parts of the country.

Production index

In January, the production index was 43.32, which was 4.51 lower than that in December. In January, the operation of the market was generally stable. The middle of the month began to be affected by factors such as the gradual return of migrant workers, the gradual logoff of logistics and the weakening of the downstream market. It is understood that some large enterprises take the national statutory holiday time as the criterion, and most SMEs start their holiday in about twenty-six of the twelfth lunar month. Tracking enterprise data shows that yarn production decreased by 21.12% in January, and cloth production decreased by 15.26%. In February, due to strict requirements for resumption and resumption of production, the ability of large enterprises to integrate and integrate resources was stronger, and the return to work was earlier.

Product sales index

In January, the product sales index was 39.44, down 7.45 compared with December. This month, the overall market performance of the general performance, the lower reaches of the majority of the inquiry wait and see. In late days, under the influence of traditional off-season and epidemic situation, the pressure of product sales increased. Tracking enterprise data shows that sales of yarn and cloth decreased by 34.35% and 28.14% respectively in January. It is understood that the impact of differentiated products based enterprises is smaller than the production of "big staple goods". The main reason is that the substitutes of differentiated products are low, and the sales pressure is low. According to specific market price data, the average price of 32 pure cotton combed yarns is 20434 yuan / ton, up 186 yuan / ton, and the average price of pure cotton grey fabric (32*32 130*70 2/1 47 "twill) is 4.80 yuan / meter, which is unchanged from last month. In recent days, under the premise of ensuring effective and stable control of the epidemic, there are downstream markets opening, but the market still needs some time to recover.

Product inventory index

In January, the product inventory index was 49.45, an increase of 3.94 compared with December. 1 in the first ten days of the month, the purchase of downstream products was mainly followed by buying and using. Some enterprises made a small replenishment to ensure normal production after the year. In the middle and lower ten days, the basic holiday in the lower reaches basically ended, and the textile enterprises had a shorter holiday than the downstream one. The inventory pressure of the products increased, and the inventory of purified fiber products was obviously higher than that of pure cotton and cotton blended products. Tracking enterprise data shows that in January, yarn inventory increased by 8.12%, and cloth inventory ring increased by 1.88%, of which pure cotton yarn inventory increased by 2.59%, and pure cotton cloth inventory increased by 2.76%. In February, affected by the epidemic, the construction time was postponed. Some enterprises indicated that they would resume their work according to the market situation.

Business index

In December, the business index was 39.82, down 8.83 compared with November. From the end of December to the beginning of January, the good news of China and the United States helped to boost market confidence, the warming of downstream stockings, the increase in enquiries, and the improvement in turnover. Subsequently, the downstream market began to suspend production and holidays. In February, the pressure of production and operation of textile enterprises will continue. The resumption of work will be faced with difficulties such as poor logistics, low turnover rate of migrant workers, shortage of epidemic prevention materials and so on. In view of the impact of the new crown pneumonia epidemic on the operation of various industries, many supporting policies of the state are gradually landing to help enterprises overcome difficulties.

Product development trend

With the increasingly fierce competition in the industry, cotton textile enterprises should strive to explore new market demand points and promote corresponding R & D production while surviving and selling products. In the aspect of appearance, functionality and comfort of products, we should actively innovate, intensify research and development, produce gauze products for market demand, and have more market space for new structure and different components of mixed gauze products. Product diversity and quality level will be further improved. China's yarn will maintain its advantages over the rest of the world in these two aspects. On the other hand, it will accelerate the order response speed and achieve high quality, high price and fast delivery.

Description: China's cotton textile industry prosperity index is collected from more than 200 cotton textile enterprises in the whole country. Through the weighted calculation of several main indexes, when the index is higher than 50, it indicates that the cotton textile industry's prosperity is better, and less than 50 indicates that the economic level is not good.