Cotton Textile Enterprise Survey Report (May 2020): Data Speak In The Future!

In May, the textile market was affected by the gradual resumption of production in Europe and the United States, and foreign trade sales improved slightly. However, the finished product inventory was still high, the capital pressure was high, and the overall operation was insufficient. According to the cotton warning system in China, more than 90 fixed-point textile enterprises in the country have shown that the inventory of raw materials has increased, textile production has decreased, yarn inventory and cloth inventory have increased slightly.

Decline in textile production

In May, the textile enterprises went slower in inventory, and the rate of starting up was still not high. According to the survey, yarn production decreased by 1.2% compared with the same period last year, down 6.8%, of which: pure cotton yarn accounted for 66.5%, down 0.5 percentage points from last month; blended yarn and chemical fiber yarn accounted for 33.5%, up 0.5 percentage points from the previous month.

Cloth production decreased by 1.2%, down 5.9% compared with the same period last year, of which: cotton cloth accounted for 0.2 percentage points lower than last month. Yarn sales rate was 59%, down 1 percentage points from last month.

At present, the finished product inventory of spinning enterprises is 28.75 days, an increase of 0.3 days from last month. Finished product inventory for grey goods finished for 35.01 days, an increase of 0.14 days from last month.

Inside and outside cotton yarn price drop

The price of cotton yarn both inside and outside has declined. Domestic 18.22 tex (32 s) pure cotton yarn average price in May was 18739 yuan /t, a decrease of 549 yuan from /t last month, a decrease of 2.85%, a decrease of 3928 yuan compared with the same period last year, a decrease of 17.33%; the import monthly price of 18.22 tex (32 s) pure cotton yarn was 18826 yuan /t, a decrease of 1078 yuan /t, a decrease of 1078, compared with the same period last year.

　　 Raw material inventory increased slightly.

The improvement of downstream market is not obvious. Textile enterprises are more small and single, and the rate of operation is low. Raw materials are basically bought and used. As of May 30th, the cotton inventory of textile enterprises was 679 thousand and 500 t, an increase of 6 thousand and 100 t from the end of last month, representing a decrease of 72 thousand and 100 t compared with the same period last year. Among them: 33% of enterprises reduce cotton inventories, 41% increase inventories, and 26% remain basically unchanged.

　　 The proportion of cotton in Xinjiang cotton increased, the proportion of real estate cotton decreased, and the proportion of imported cotton was basically flat:

1) the textile enterprises used Xinjiang cotton accounted for 91.38% of the total cotton consumption, an increase of 0.03 percentage points from the previous month, an increase of 11.38 percentage points from the same period last year, of which: the proportion of Xinjiang cotton in reserve was 4.28%, and the proportion of Xinjiang cotton in this year was 95.72%.

2) the proportion of real estate cotton used by textile enterprises is 1.75%, which is 0.04 percentage points lower than that of last month. Among them: the proportion of reserve real estate cotton is 6.77%, and the proportion of real estate cotton is 93.23% this year.

3) the proportion of imported cotton used by textile enterprises was 6.87%, an increase of 0.01 percentage points from last month, a decrease of 4.93 percentage points from the same period last year.

In addition, recent Shandong and Henan textile market intensive research shows that Shandong's high density industry chain is incomplete, development space is facing bottlenecks; Shandong Yuncheng production situation is improving, cotton yarn is running smoothly; Shandong Heze cotton cost is increased, and has not been transmitted to downstream yarn prices. Textile enterprises generally say that the price of raw materials is difficult to accept at present, and the production of Henan textile enterprises is restored to normal. But cotton prices are rising pressure, domestic market stabilizes, export orders are hindered; in Jiangsu and Zhejiang provinces, 31% of weaving enterprises are full looms in the recent stage, 16% of weaving enterprises at this stage, the starting rate is 7~9, 27% of weaving enterprises start up at 5~7 percent, while 26% of the weaving enterprises start up less than 50%.