The Textile Supply Chain Is Almost Halting And Cotton Consumption Is On The Decline.

Affected by the escalation of the global epidemic, the textile mills in recent weeks have been delisting all over the world, purchasing only the most urgent demand for raw materials.

From all aspects of the situation, as the industry chain downstream orders began to reduce, at present, the stock of cotton mill products began to increase. Meanwhile, the three weeks of India's closure stopped all textile production and port shipments. Cotton mills in Pakistan and Bangladesh are also facing the same problem, and downstream orders are decreasing, leaving cotton mills in a shortage of funds. Pakistan's clothing exports in February also increased by 20%, a record high, and March is expected to decline by 60% or more. The situation in other markets is similar.

As of last week, the shipment of high grade Australian cotton base at 2100-2350 points, the base difference of cotton 41-4-36, 31-4-36 and 31-3-36 GC was 875-985 points, the base of Brazil cotton M 1-1/8 grade cotton was 925, and West African cotton was 1200.

At present, the international cotton price has dropped to a low level of ten years, and China's resumption of production has been improving. Recently, the state has relaxed the quarantine procedures for imported cotton. The cotton imports should have been expanded as planned. However, the deteriorating overseas situation has led to a decline in orders for textile exports, and cotton import demand has dropped to freezing point. According to the current situation, it is estimated that global cotton consumption will decrease by 10-15%, depending on how long the current epidemic crisis will last.