Prosperity Report Of China'S Cotton Textile Industry In September 2020

In September, the prosperity index of China's cotton textile industry was 52.58. After half a year, it returned to above 50 of the Kuo Rong line again, and the operation of the industry showed a significant recovery. In terms of raw materials, cotton and non cotton prices rose steadily this month, and textile enterprises purchased more active raw materials than last month, and the digestion speed of raw materials inventory was accelerated. In terms of production, sales and inventory, the market environment improved this month, the start-up rate of textile enterprises increased month on month, and the output of yarn and cloth increased; in terms of sales, the sales of all kinds of products were smooth, among which the conventional low and medium count yarn products went faster, and the demand for grey cloth was better; in terms of inventory, the clearing speed of products in the early stage of textile enterprises was accelerated, and the product inventory pressure was reduced. In terms of price, affected by the rise of cotton price, the price of cotton yarn rose rigidly, but the price increase was less than that of cotton price, and the gray cloth was weak, and the profits of textile enterprises were not effectively improved. The questionnaire survey of China Cotton Association shows that with the steady recovery of various economic indicators, the overall atmosphere of the market is warming, the downstream demand is beginning to release, and the operating pressure of textile enterprises is alleviated compared with the previous period, and most textile enterprises are cautious and optimistic about the future market.

In terms of raw materials, after three months of orderly auction and storage, with the successful completion of the last round of reserve cotton round on September 30, 2020 will be a successful conclusion. A total of 504000 tons of reserved cotton were listed for sale this time, with a cumulative turnover of 503400 tons, with a transaction rate of 99.87%; the average transaction price was 11789 yuan / ton, which was converted into standard (3128b) price of 13099 yuan / ton, the highest transaction price was 13030 yuan / ton, the lowest transaction price was 10440 yuan / ton, and the average price increase was 1036 yuan / ton. Generally speaking, under the influence of global epidemic situation and Sino US economic and trade friction, the demand of foreign trade market has declined, and the deep development of domestic market has become the main target of textile enterprises. With the adjustment of domestic product structure, the reserve cotton with high performance price ratio effectively fills the gap of cotton used by textile enterprises, and reduces the cost of cotton to a certain extent.

In terms of import and export, according to the import and export data released by the General Administration of Customs on October 13, 2020, the export growth rate was 9.9%, with a month on month increase of 0.4%. In September, the export of textile and clothing was 19.69 billion yuan (in RMB), an increase of 14.5%, including 91.23 billion yuan of textile export, an increase of 33.4%, and the export of clothing was 105.56 billion yuan, an increase of 2.1%. In September, China's exports to the United States and ASEAN continued to grow, while exports to the European Union fell, mainly due to the recovery of the European manufacturing industry and the narrowing of the supply and demand gap. Due to the risk of global epidemic spreading rising again, the pace of returning to work overseas may slow down. It is expected that the import demand of overseas market will be stronger in the short term, which will benefit China's foreign trade enterprises. Meanwhile, the second outbreak of epidemic in some countries may continue to drive the export of anti epidemic materials in China.

Raw material purchasing index

For the fourth consecutive month, the purchasing index was in the 54 th consecutive month. With the improvement of the market atmosphere, the downstream orders have increased, and textile enterprises are more active in replenishing the warehouse, especially the cotton procurement volume has increased significantly. In September, cotton prices at home and abroad rose. Domestic cotton prices rebounded after a sharp fall, the price center of gravity remained upward overall, and the cotook a index fluctuated frequently. In terms of chemical fiber staple fiber, the viscose staple fiber market recovered this month, and the quotation was increased; the price of polyester staple fiber was affected by the decline of polyester raw material price due to the increase of crude oil price fluctuation, which basically fell in a weak state this month.

According to the specific data, the average price of 3128 cotton in China this month was 12830 yuan / ton, up 225 yuan / ton on a month on month basis; the average cotook a index was 70.81 cents / pound, up 0.86 cents / pound; the average price of mainstream viscose fiber was 8844 yuan / ton, up 431 yuan / ton; the average price of 1.4d direct spinning polyester was 5435 yuan / ton, down 37 yuan / ton month on month.

Stock index of raw materials

In September, the raw material inventory index was 50.73, and the raw material inventory was at a reasonable level. In September, the market atmosphere became warmer obviously, the consumption of raw material inventory accelerated, and textile enterprises were more active in replenishing the warehouse. In addition, this month is the last month of reserved cotton rotation. In order to lock in cotton resources, textile enterprises actively bid, and the raw material inventory increased. According to the questionnaire of China Cotton Association for Industry and commerce, 41.6% of the enterprises with cotton inventory increased on a month on month basis in September, and 30.71% decreased on a month on month basis; 33.58% of the enterprises had a month on month increase in the inventory of non cotton fiber, and 29.94% of the enterprises had a decrease in the inventory of raw materials.

Production index

In September, the production index was 52.88, which accelerated the production rhythm of textile enterprises. In September, the start-up rate of textile enterprises rebounded rapidly, and the output of yarn and cloth increased significantly. Among them, the proportion of enterprises whose cloth output rose month on month increased by 19.6 percentage points. According to the coordination survey of China cotton company, in September, 49.17% of the enterprises increased yarn output, 27.04% decreased month on month; 58.45% of the cloth output increased, 24.42% decreased, 34.74% and 4.44% respectively. At present, the domestic production of grey fabric increased significantly according to the domestic orders and a small amount of domestic production in September.

Product sales index

In September, the product sales index was 52.7, the second time in the year that it was in the boom range. In September, the domestic market continued to recover, with an increase in the number of orders, which was still dominated by "short, flat and fast" orders. The sales of high count yarn and grey cloth were significantly improved. According to the coordination survey of China cotton company, 62.03% of the enterprises saw a month on month increase in yarn sales, and 66.95% in grey cloth sales. Some textile enterprises said that orders in Europe and the United States increased slightly in early September, but they were worried that orders would be cancelled again as the risk of the second outbreak of the global epidemic increased. In addition, the continued appreciation of the RMB has also caused certain pressure on exports, and the sharp changes in the exchange rate have squeezed the profits in the settlement of foreign exchange.

Product inventory index

In September, the product inventory index was 53.81, and the textile enterprises increased the speed of de stocking. In September, the warmth of the market was transmitted to the upstream of the industrial chain, and the production and sales of textile enterprises were smooth, and the inventory accumulated in the early stage decreased significantly. From the aspect of variety, the conventional general combed yarn is better than combed yarn. Due to the large stock base of grey fabric, the products are still under heavy pressure. In addition, textile enterprises are cautious to increase the starting rate to control product inventory. According to the coordination survey of China Cotton bank, in September, the proportion of enterprises with yarn inventory decreasing on a month on month basis was 59.82%, and that of enterprises with a month on month increase in yarn inventory accounted for 19.82%; the proportion of enterprises whose inventory of grey cloth decreased on a month on month basis was 59.85%, and that of enterprises with a month on month increase accounted for 24.66%.

Business operation index

In September, the business index of enterprises was 51.34, and the business income of textile enterprises increased significantly. In September, the prices of yarn and cloth rose steadily, mainly due to two main reasons: first, the price of raw materials rose rigidly; second, the market recovered and raised the price of products. However, as the price increase of products was less than that of raw materials, the profit margin of textile enterprises was still at a low level. Some textile enterprises said that orders in September had improved significantly, but the market competition was more intense. In order to digest the inventory accumulated in the early stage, the goods were basically delivered at low price, and the profit was unsatisfactory. According to the data from the coordination survey of China Cotton bank, most enterprises said that the revenue increased significantly on a month on month basis, but the profit margin was low and basically maintained normal operation.

Enterprise confidence index

In September, the enterprise confidence index was 53.05, and textile enterprises generally held a cautious and optimistic attitude towards the future market trend. Some textile enterprises said that the market is gradually warming up. Although the sales situation is not as good as the same period last year, the month on month improvement is obvious. This is a good thing for textile enterprises, but at the same time, textile enterprises also have concerns. At present, market uncertainty factors are still prominent, so most enterprises still choose the business strategy of purchasing on demand and producing according to order. With the "double 11", Christmas, Spring Festival and other festivals approaching, the international and domestic textile and clothing market is expected to continue to warm up. In addition, this year's strong cold winter is expected to be good for this year's winter clothing sales, and the downstream demand for cold proof products is expected to increase. With the steady recovery of domestic economy, China's cotton textile enterprises will continue to strengthen their confidence, overcome difficulties and strive to improve the overall efficiency.

Note: the prosperity index of China's cotton textile industry is collected from nearly 500 secondary cotton textile enterprises in China. Referring to the establishment methods of national manufacturing PMI and other indexes, it is concluded that when the index is higher than 50, it means that the prosperity degree of cotton textile industry in this month is better than that of last month; if it is lower than 50, it means that the prosperity degree of this month is lower than that of last month.