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    Weaving Market Has Improved Slightly And Confidence Has Been Restored.

    2020/6/1 18:09:00 0

    Weaving Market

    1. Raw material Market


    In May, domestic and foreign cotton prices rose slightly, and the overall trend was relatively stable. In May 28th, domestic 3128B cotton prices were quoted at 11990 yuan / ton, up 285 yuan / ton from the same period last month, and most textile enterprises did not increase their raw material inventory, mainly with the purchase and purchase, with a small number of transactions in the market, and about 80% of the raw material stocks remained at 1 months.


    The sales of cotton yarn increased from last month, mainly due to the relative low price of cotton yarn. Traders and parts of the weaving enterprises with less stocking in the earlier stage lowered the replenishment bank, and the purchasing intention increased, but the price remained weak, and the profits of spinning enterprises were generally not good. Among them, the regular pure cotton yarn 32 branches and 40 branches sell relatively well, the price is basically stable, the enterprise stock pressure slightly drops; the high count pure cotton yarn, the combed yarn demand maintains the weak position, the actual transaction gives the profit space to be bigger, the enterprise stock pressure has not reduced. About 80% of the enterprise yarn stock in 1 months or so, the boot rate maintained last month level.


    2. Weaving Market


    Weaving Market slightly improved, the domestic market began to start, some of the enterprise orders to June, export market enquiries increased, local area received a small number of orders, but the overall situation is still no marked improvement. In order to maintain normal operation, enterprises without orders choose regular production varieties. At present, the overall start-up rate is maintained at around 60%. With regard to inventory, a slight increase in orders and some traders' speculative buying led to a slight decline in inventory of weaving enterprises. At present, 85% of the survey enterprises have been in storage for 1 months.


    Business capital pressure is generally larger, grey cloth quotes confusion, in addition to recent sales of individual varieties relatively good price increases 0.1-0.2 yuan / m, other varieties are still weak. According to the market, the sales of conventional varieties in Nantong market were not ideal in May. Some foreign trade enterprises stalled orders before shipment, the inquiry increased, the printing and dyeing enterprises orders were insufficient, the market situation was still not optimistic; the domestic market orders in Lanxi started one after another, the start-up rate of enterprises increased, the price of products increased, the sales of conventional varieties were smooth, and the overall situation improved. In terms of profits, with the increase of domestic orders, the quotation of products has gradually returned to normal. At present, weaving enterprises basically maintain capital preservation, and individual enterprises are at a loss.


    3, outlook for the future


    At present, the international epidemic situation is still grim. With the acceleration of the pace of resumption of work in Europe and the United States, trade, transportation, retail and other industries are gradually recovering, and foreign trade orders are partially reflux, but the degree of social isolation in some countries is still strengthening. In May 22nd, Premier Li Keqiang of the State Council pointed out in the government work report that we should try our best to help enterprises, especially small and medium sized enterprises and individual businesses to tide over difficulties, increase tax reduction and tax reduction efforts, promote the reduction of production and operation costs, strengthen financial support for stable enterprises, and focus on stabilizing enterprises and ensuring employment for the textile industry chain. It provides a strong guarantee for normal operation. The epidemic has led to the global economic recession, and the recovery of consumer demand is a slow process. In the short term, if the downstream orders do not improve significantly, it is expected that the pressure on production and operation of textile enterprises in June will remain large.


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