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China Cotton Association: The Cowboy Market Is Not Booming In The Busy Season.

2020/4/26 14:16:00 2

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Two thousand and twenty April, China Cotton prices have risen, jeans prices and indigo dye prices continue downward. The resumption rate of denim enterprises has been continuously improved, production orders are generally inadequate, and enterprises are cautious about the market outlook.

Raw material Market

Since April, the external epidemic situation is grim, the global economy has been challenged, and cotton and other commodity prices remain weak. As of April 24th, the spot price of domestic 3128B grade cotton was 11710 yuan / ton, up 1240 yuan / ton from last month, but it is still at a historical low. According to the statistics of China Cotton Association, raw materials for spinning enterprises are cautious, and cotton stocks are more than 1 months old, about 53%. The yarn purchased by denim enterprises is more prudent. The purchase price of OEC12 and C12 pure cotton yarn has dropped by about 700~800 yuan / ton compared with the same period last month, and the price of indigo dye has been reduced by 2000 yuan / ton compared with last month. The decline in prices of yarn and indigo dye is mainly due to the weak demand in the downstream market, and the reduction in sales of enterprises to return the funds.

Denim Market

From the view of the re production of denim enterprises, the main denim enterprises in the country have been fully reproduced, and production and operation have returned to normal level.

From the production point of view, as of April 24th, 50% of the main denim enterprises in Shandong, Hebei, Jiangsu, Zhejiang, Guangdong and other places indicated that the start-up rate was above 70%, and the product inventory was relatively low. 80% of the enterprises thought that the full load production was less than 1 months, and some enterprises said they would choose workers to take turns after the "five one".

From the export market, export orders continued to decline, compared with the same period last year, 80% of enterprises indicated that orders fell by more than 50%. First, the export market continued to slump, and orders decreased; two, there was great uncertainty in the sales contracts under the epidemic situation. In order to avoid risks, many denim enterprises chose to abandon export orders voluntarily; three, enterprises generally reflected the export remittance. To procrastinate, for example, goods such as Bangladesh and other ports have not entered Hong Kong, and the return of business funds has been affected.

From the domestic market, 80% of the cowboy enterprises believe that domestic consumption has not yet recovered significantly. The downstream brand clothing enterprises have more stock in spring, and the digestive cycle is lengthened so that fewer orders are placed in the autumn. In addition, garment enterprises are also lowering the price of denim at different levels, and the profits of denim enterprises have been reduced.

Outlook for the future

From the market situation, the core of the business is the lack of demand. Enterprises generally believe that the reduction of orders caused by the continuous fermentation of the epidemic may continue for several months. On the one hand, enterprises pay attention to the market trend and make adjustments in time to reduce losses in production and operation; on the other hand, they hope that the state can continue to give real economic support to policies, boost market consumption and help enterprises gradually get out of the predicament.

(the above contents and data are from a sample survey of denim enterprises for reference only).