Gauze Production For Two Consecutive Months, Month On Month, Revenue And Profit Decline Significantly Narrowed

According to the tracking data of China Cotton Textile Industry Association, cotton textile production increased slightly month on month in July, sales were relatively weak, and inventory pressure was further increased.

Raw materials: purchasing and consumption of more than half of enterprises increased month on month

In July, the raw material purchasing of tracking enterprises increased by 5.38% on a month on month basis, of which 53% increased month on month, 6% less than that of the previous month. The purchase of raw cotton increased by 6.44% month on month. In July, the average price of domestic standard cotton was about 12300 yuan per ton, which was 1.5% higher than the average price in June, and increased by 7.7% for three consecutive months. In July, the cotton reserve was put into operation, with a total turnover of 189200 tons, with a turnover rate of 100%. The purchasing volume of non cotton fiber in raw materials increased by 3.41% month on month. In July, the prices of viscose staple fiber and polyester staple fiber continued the downward trend in June, with monthly average prices falling by 4.1% and 7.7% respectively. By the end of July, compared with the price at the beginning of the year, the price of viscose staple fiber and polyester staple fiber decreased by 12% and 24% respectively.

In July, the raw material consumption of cotton textile enterprises increased by 1.32% on a month on month basis, accounting for about 59% of the total, which decreased by 3% compared with the previous month. As of the end of July, raw material inventory increased by 2.62% month on month and 3.29% compared with the same period of last year. Affected by market conditions, downstream orders are cautious, reserve cotton continues to put in, textile enterprises are mostly buy and use, in order to reduce capital risk.

Production: the production of gauze increased month on month, and the utilization rate of equipment decreased slightly

In July, the output of yarn and cloth increased by 1.41% and 2.35% respectively. From January to July, the cumulative output of yarn and cloth of tracking enterprises decreased by 13.50% and 15.62% respectively year-on-year, and the decline rate narrowed for five consecutive months, 10.4% and 11.8% respectively compared with the cumulative year-on-year decline in February.

As of the end of July, the utilization rate of spinning and weaving equipment of tracking enterprises decreased slightly compared with that of last month, and the utilization rate of spinning equipment was slightly higher than that of weaving equipment. Among them, 73% of the enterprises with the utilization rate of spinning equipment higher than 85% accounted for 73%, which was 2% lower than that of the previous month; 71% of the enterprises with the utilization rate of weaving equipment higher than 85% accounted for 1% lower than that of last month. Compared with the same period of last year, the utilization rate of spinning and weaving equipment decreased by 5% and 9% respectively.

Sales: gauze sales increased one month on month, while inventory increased month on month

In July, yarn sales increased by 3.46%, cloth sales decreased by 1.82%. Yarn inventory increased slightly by 0.31% and cloth inventory increased by 2.94%. In the same month, the price of pure cotton yarn was basically stable; the price of pure viscose yarn and pure polyester yarn showed a downward trend, with the monthly average price decreasing by 3% and 5% respectively. By the end of July, compared with the beginning of the year, the prices of pure cotton yarn, pure viscose yarn and pure polyester yarn decreased by 9%, 18% and 18% respectively. According to the data of the General Administration of customs, China imported 170000 tons of cotton yarn in July, an increase of 20000 tons on a month on month basis. The price of cotton imported from India is about 32 yuan per ton. It is understood that since July, the market situation has not changed significantly. Although the inquiry phenomenon has increased, the actual orders are still less; conventional yarn delivery is relatively better than high count yarn, but there are many price depressions, and the enterprise's profit is meager.

Operation: the year-on-year decrease of revenue and profit was significantly narrowed than that at the beginning of the year

As of the end of July, the loss of tracking enterprises was about 42%, 13% higher than that of the same period of last year, and 4% lower than that of last month. From January to July, the total operating income of tracking enterprises decreased by 14.67% year-on-year. Among them, 88% of the enterprises decreased year-on-year, accounting for a decrease of 2% compared with the previous month, and a decrease of 15.8% compared with that of February; the cumulative year-on-year decrease of export delivery value was 26.78%, with a decrease rate of 2% compared with that of last month; the total profit decreased by 37.33% year-on-year, among which 76% of the enterprises decreased year-on-year, accounting for 15.8% Compared with the previous month, it decreased by 5 percentage points, and narrowed by 34.4 percentage points compared with the cumulative year-on-year decrease in February.

Cluster: some enterprises are affected by rainstorm and flood

According to the follow-up survey of the cluster situation, the overall cluster production did not improve in July, and the enterprise operating rate and equipment utilization rate were at a low level.

According to the economic operation data, compared with the same period last year, the output and output value of the tracking cluster decreased significantly from January to July, and the decline rate was narrower than that of last month. The total yarn output and cloth output of cluster enterprises decreased by 29.1% and 31.3%, respectively; the operating income and total profit decreased by 23.6% and 54.4%, respectively.

It is understood that on the one hand, enterprises take advantage of this to cultivate their internal skills and improve their production and management level; on the other hand, they adjust the product structure, produce products with slightly better sales situation, and actively respond to the current market situation and wait for the market to recover. In the same month, rainstorm and flood occurred in China, and some cluster areas were greatly affected, and the startup rate decreased significantly. By the end of August, the average operating rate of the tracking cluster is about 60%, of which the operating rate of Enterprises above the designated size is about 75%, and the enterprises under the planning are under operation; the opening rate of enterprises is lower than the operating rate.

The data in this report are all from China Cotton Textile Industry Association, involving more than 240 cotton textile enterprises and about 15 industrial clusters in China. The total spinning capacity accounts for about 60% of the national cotton textile industry, which is representative of the industry.

This report is strongly supported by Zhengzhou Commodity Exchange.

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