May 2020 China Cotton Textile Industry Boom Report

May cotton textile prosperity index was 47.85, the decline narrowed from last month. This month, domestic consumption demand is still in the recovery stage, the international epidemic continues to spread and other factors, the market is slack, our cotton spinning enterprises remain low; sales, gauze sales have been warmer than last month, conventional products are better than high-end products; inventory of products, the stock pressure this month eased, from the China Cotton Textile Industry Association. The "cotton trade association" survey shows that yarn goes out of stock better than that of grey cloth.

This month, the two sessions of the National People's Congress were successfully convened. In this year's government work report, it is proposed that in order to help enterprises to relieve their difficulties, the tax burden of small and medium enterprises, individual businesses and enterprises in difficult sectors should be reduced. The new tax reduction and reduction will cost about 500 billion yuan. It is estimated that more than 2 trillion and 500 billion yuan will be added to enterprises over the whole year. In addition, in order to promote the basic stability of foreign trade and support enterprises to increase the employment of single stable jobs, the credit will be increased, the coverage of export credit insurance will be expanded, the compliance cost of import and export will be reduced, and the export products will be transferred to domestic market. At the same time, in order to effectively stimulate consumption vitality, the state has promulgated a series of policy initiatives to promote a virtuous circle between consumption, employment and total demand, and effectively hedge the impact of the epidemic.

In terms of foreign trade, according to the statistics bulletin of the General Administration of customs, the total export volume of textiles and clothing in China was 96 billion 160 million US dollars from 1 to May this year, a decrease of 1.17% over the previous year (2.16% yuan in the year over year), a decrease of 8.8 percentage points over the first four months of the previous year (a 9.58 percentage point increase in RMB growth rate). Among them, the total export of textiles was 57 billion 950 million US dollars, an increase of 21.3% over the same period (25.5% yuan over the same period last year). In May this year, China's clothing exports amounted to 8 billion 910 million US dollars, down 24.4% compared with the same period last year (20.7% yuan in the same period last year), a decline of 3.3 percentage points from the previous month. At present, the demand of international main consumer market is still in a slump, and the demand for textile and clothing has recovered slowly. It is estimated that the export situation of our clothing industry is still more serious in the two quarter of this year.

Raw material purchasing index

In May, the index of raw material purchasing was 49.41, a rebound from last month. In May, domestic and foreign cotton prices rose slightly, and domestic cotton prices rose more than foreign cotton prices. At the beginning of the month, Zheng cotton futures opened sharply lower, and domestic cotton spot prices fell slightly, and then fell slightly and picked up slightly. The trend of CotlookA index was linked to domestic cotton prices. In terms of non cotton fiber, the price of polyester staple fiber and viscose staple fiber showed a weakening trend, mainly due to the combined influence of the strong correlation between crude oil price shocks and product prices and the weak market demand. According to the results of the coordination survey conducted by China Cotton bank, the enthusiasm of the enterprises to purchase raw materials increased this month.

Specific data, the average price of domestic grade 3128 cotton in the month was 11892 yuan / ton, up 531 yuan / ton, the average CotlookA index was 65.58 cents / pound, the increase was 1.95 cents / pound, the average price of mainstream viscose fiber was 8837 yuan / ton, the chain fell 313 yuan / ton; 1.4D direct spinning polyester short average price 5748 yuan / ton, the chain fell by 192 yuan / ton.

Raw material inventory index

In May, the raw material inventory index was 48.65. At present, the market demand is still in the recovery stage, the price of products is relatively weak, and raw material prices lack strong support. At present, the price of cotton has been in the low level for nearly two years. It is understood that most of the raw material inventory of textile enterprises is in the range of one month to two months. From the comprehensive survey results of China Cotton Association, the raw cotton inventory of textile enterprises in May was basically flat, and the non cotton fiber inventory increased significantly. June is the traditional off-season of textile industry. It is expected that the use of raw materials and the pace of procurement will slow down.

Production index

In May, the production index was 47.45. This month, due to no apparent improvement in the domestic demand market, and the negative impact of the impact of the new crown pneumonia epidemic on the consumer market is still continuing and many other reasons, the downstream is cautiously cautious. At present, the start-up rate of textile enterprises is still at a low level, and the production varieties are dominated by conventional varieties. Some companies say that although the prices of products are low, the delivery of goods has improved since last month. Considering that the industry's traditional off-season is coming, it is decided to continue to operate at a low speed. According to a survey conducted by China Cotton Association, 57.12% of the respondents said that the rate of starting up in May was flat or flat, and the yarn production was better than grey cloth in terms of output.

Product sales index

In May, the product sales index was 47.66, an increase of 2.33 from last month. Overall, sales in the first half of this month are better than in the second half, and domestic sales are better than foreign trade. At present, the domestic consumer market has shown signs of recovery, although the small ones are still the main ones, but the cold market has improved since the beginning of the year. After the May Day holiday, the purchasing enthusiasm of the lower reaches increased, and the regular combed yarn purchased was more than other varieties. However, the price remained weak. Enterprises said that due to the slow recovery of the European and American markets and the lack of improvement in the textile and apparel trade orders, China's export textile enterprises have turned to domestic orders, while the domestic demand market is still recovering. In June, if the consumer market did not see any improvement, the market is expected to continue to fade.

Product inventory index

In May, the product inventory index was 49.82. This month, most spinning enterprises adjust their product structure and production rhythm according to their own market conditions, actively explore the market, and strive to maintain a balance between production and marketing. According to the coordination survey conducted by China Cotton bank, 44.84% of the surveyed enterprises indicated that the inventory of products was lower than that of last month. In June, for fear of the domestic consumption ability and the situation of foreign epidemic control and control, the textile enterprises indicated that the production rhythm would move along with the market and try to balance the stock. With the coming of the off-season, the sales pressure is expected to increase, and the stock of products will increase.

Business index

In May, the business index was 47.08, an increase of 1.37 from last month. This month, domestic consumer demand remained weak and warmer. Nearly 50% of the surveyed textile enterprises are expected to maintain the status quo or improve in the future. On the international side, the international epidemic continues to spread and the fluctuation of exchange rate and other factors make the market wait-and-see sentiment strong, foreign trade orders are more cautious. In June, it will enter the traditional off-season of textile industry, overlay the impact of the epidemic, and expect later orders to continue to decrease. Some textile enterprises will use this time to think about the way of transformation, enhance their core competitiveness, and wait for the market to recover. In addition, textile enterprises have said that many clothing and home textile enterprises have actively developed sales channels recently, and have made efforts to sell electricity suppliers. This has brought vitality to the whole industrial chain, but at the same time, there are also the following problems: most of the textile terminal sales are separated from the value-added tax system, and the industrial chain value-added tax circle does not match up and down. It is hoped that the relevant departments will pay attention to the issue of VAT transfer in the industry chain while protecting the sales mode of e-commerce, and protect the compliance enterprises.

Description: China's cotton textile industry boom index collected from nearly 500 sub cotton textile enterprises in the country, referring to the national manufacturing PMI index making method, through the weighted calculation of several main indicators, when the index is higher than 50, indicating that the cotton textile industry boom in the month is better than last month, less than 50 indicates that the boom in the month is less than last month.