White Market: Pressure On Production And Marketing, Pressure And Consumption

Two thousand and twenty Since March, at home and abroad Cotton futures and spot prices fell sharply, and cotton and grey fabrics were under pressure. Gray fabric enterprises operating rate keeps rising trend. Export orders postponed and revoked the impact. In late March, the situation of insufficient orders and cold sales was highlighted. The number of stocks increased day by day, and some smaller enterprises appeared to stop production. The utilization rate of capacity decreased compared with the beginning of March.

One Raw material Market

In March, under the negative impact of the rapid spread of overseas epidemic, global commodities fell into a downward path. Zheng cotton futures fell sharply. Cotton spot prices fell by more than 2000 yuan / ton in the month. In April 9th, domestic 3128B cotton spot quotations were 11350 yuan / ton, textile purchasing decreased, and the market was sporadic, and cotton prices remained low in recent years. Cotton yarn Market in early March sales situation is better, since the end of last year, the overall turnover of the market turned pale, prices continued to fall, the price of conventional varieties fell by 1300 yuan / ton compared with the same period last month, the company's willingness to lower shipments increased, the actual turnover can be negotiated, the high yarn market is relatively good, and sales in sub regions are acceptable. It is understood that most of the spinning enterprises still maintain normal production, yarn inventory is mostly in 1 months or so.

Two Grey fabric Market

Entering the late March, the overall purchase and sale of the grey fabric market was deserted, the order of enterprises was compressed, and the pressure of export enterprises was particularly obvious. Enterprises generally faced with the situation that the orders had been postponed or shipped, even the order was not enough. The enterprises promoted production by transferring the export market or moving to the domestic market, so as to reduce the impact of the epidemic. On the whole, production and sales, the operating rate of enterprises has increased, but the utilization rate of capacity has declined compared with the first half of March. In the face of sluggish market demand, the number of enterprises has been reduced, and the speed of product sales has slowed down, resulting in inventory accumulation. At present, most enterprises stock is in 1 months or so, and some export enterprises are in stock for 2 months or so. Orders, some large enterprise orders can be discharged to the end of April or even May, small enterprises are short of orders, mainly based on intermittent small orders, and are forced to increase the output of conventional varieties to maintain normal operation. In terms of price, most product quotations decreased by 0.2-0.5 yuan / ton compared with the same period last month, and market enquiries and purchases continued to decrease. There is still room for negotiation in actual transactions. In terms of efficiency, in late March, the grey cloth market continued to weaken, and most varieties had fallen earlier, and the enterprises were basically in a state of no profits, and some enterprises even lost money.

Three Outlook for the future

The current international epidemic situation is grim. The latest report released by the Department of economic and social affairs of the United Nations predicts that the global economy will shrink by 0.9% in 2020, under the influence of the new crown pneumonia epidemic. In the face of the severe foreign trade situation, in April 7th, Premier Li Keqiang chaired the National Convention, launched a series of measures to stabilize foreign trade, actively responded to the epidemic situation, and continued to implement partial tax support policies of Inclusive Finance and small loan companies to help SMEs overcome the difficulties. Overall, the impact of the epidemic is still fermented, and the global unemployment rate has risen sharply. By the end of March, the total number of Americans receiving unemployment insurance has exceeded the highest level in 2009. The increase in unemployment rate will further inhibit the consumption demand of textile market, while the domestic market demand is weak, and the pressure of export to domestic sales is heavy. And other financial institutions can increase support for textile enterprises to ensure normal production and operation of enterprises.

The above contents are from the sample survey of grey cloth enterprises, for reference only.