Production And Sales Slowed In April, Inventories Increased, Production And Revenues Narrowed Year-On-Year.

According to the data of China Cotton Textile Industry Association in April 2020, since April, domestic enterprises have speeded up the resumption of production and production, and the global anti new crown epidemic situation, the textile industry export orders were blocked, and the cotton textile production and marketing situation slowed down overall.

In 1 and April 2020, the procurement of raw materials for enterprises was reduced by 4.41%, of which about 57% of raw material purchases decreased. Raw material cotton purchase volume decreased by 4.8%. The purchase volume of imported cotton in raw cotton decreased by 5.27%. The purchase amount of non cotton fiber in raw materials decreased by 3.73%.

2, in April, the raw material consumption of tracking enterprises decreased by 3.25%, and about 60% of enterprises decreased. As of the end of April, raw material inventories decreased by 3.75%.

3, 1~4 months tracking enterprise yarn production, cloth production year-on-year decline of 19.12% and 17.96%, respectively, the cumulative decline for two consecutive months narrowed.

4, in April, sales of yarn and cloth decreased by 14.87% and 10.13% respectively. As of the end of April, the yarn inventory increased by 11.96%, and the inventory of fabrics increased by 6.51%. In the past month, in order to stabilize employees and ensure employment, enterprises have gradually shifted from order production to inventory production, resulting in a substantial increase in inventories.

5, as of May 15th, the average operating rate of the tracking cluster was around 54%, and the utilization rate of spinning and weaving capacity was below 40%.

Note: the data of this report all come from the China Cotton Textile Industry Association, which involves more than 240 cotton textile enterprises and 15 industrial cluster data in China. The total spinning capacity accounts for about 60% of the national cotton textile industry.