Data Analysis: Production And Operation Status Of Cotton Textile Industry In 2020

According to the data of key enterprises tracked by China Cotton Textile Industry Association, with the continuous and effective implementation of domestic epidemic prevention and control work, the domestic consumer market demand has gradually recovered, and the negative impact of the epidemic on the production and operation of textile enterprises has gradually decreased. Since the second quarter, the capacity utilization rate of equipment of cotton textile enterprises has been gradually improved, and the operation quality and efficiency have been gradually improved, and enterprises have made great contribution to the future development of the industry Confidence gradually increased.

1. The output of yarn and cloth continues to increase, and the utilization rate of equipment is gradually improved

The data shows that the cumulative year-on-year decrease of yarn output in 2020 is 6.76%, in which the output of pure cotton yarn, cotton blended yarn and purified fiber yarn will decrease by 5.15% - 8.12%; the cumulative output of cloth will decrease by 11.38%, among which the output of pure cotton, cotton blended fabric and purified fiber cloth will decrease by 7.01% - 23.70%. Since February, the year-on-year decline rate of yarn and cloth output has continued to narrow. Compared with February, the year-on-year decrease rate of yarn and cloth output in December has decreased by 25.62% and 15.99% respectively.

According to the data of raw material consumption, in 2020, the total consumption of raw cotton will decrease by 6.51%, of which raw cotton consumption will decrease by 5.09%, import cotton consumption will decrease by 15.17% and non cotton fiber consumption will decrease by 8.87%. The year-on-year change trend of raw material consumption of cotton textile enterprises is basically consistent with the trend of yarn output. Since February, the consumption of raw materials has gradually increased. In August, China's clothing export ushered in a positive growth for the first time in that year, and the consumption of imported cotton increased significantly year-on-year, with a decrease of 10.59 percentage points compared with that in July.

In terms of equipment utilization, as tracking enterprises are mainly large and medium-sized enterprises, the production and operation are relatively stable, and the overall utilization of equipment is better than that of the national cotton textile industry. The data shows that the utilization rate of spinning equipment in 2020 will decrease by 0.29% year-on-year, and the utilization rate of weaving equipment will increase by 1.30%. In terms of months, the utilization rate of cotton textile enterprises has been gradually improved since February, in which the utilization rate of spinning equipment is better than that of weaving equipment, which is consistent with the purchase and sales situation of yarn and cloth market. With the continuous improvement of domestic economic operation, the purchase and sale of yarn and cloth markets have gradually recovered, but the market conduction is not smooth, and the purchasing and selling situation of downstream grey cloth market is not as good as that of yarn market.

2. Sales continued to improve, product inventory decreased and raw material procurement increased

Sales data show that the cumulative year-on-year decrease of yarn sales in 2020 is 4.31%, of which the sales of pure cotton yarn, cotton blended yarn and purified fiber yarn decrease by 3.76% - 5.49%; cloth sales volume decreases by 13.51%, among which the sales of pure cotton, cotton blended fabric and purified fiber cloth decrease by 9.17% - 25.43%. The data shows two characteristics: one is that the sales volume of grey cloth is significantly lower than that of yarn; the other is that the change trend of sales volume of yarn and cloth is basically the same as that of output, and the decrease trend is gradually decreasing. Since August, the decrease rate of yarn sales volume is less than that of its output, and the yarn inventory is obviously decreased; the year-on-year decrease of cloth sales volume has been higher than that of its output since the beginning of the year, The stock of warehouses is increasing. This shows that the current domestic economic and social development is good, production and supply continue to recover, and the demand of downstream market is gradually warming up, but the overall demand is still weak.

According to the data of product inventory, in 2020, the cumulative yarn inventory of cotton textile enterprises decreased by 19.38% year-on-year, of which the inventory of pure cotton yarn, cotton blended yarn and purified fiber yarn decreased by 8.90% - 27.89%; the cumulative increase of cloth inventory was 16.02%, among which the inventory of pure cotton, cotton blended fabric and purified fiber cloth increased by 13.09% - 44.84%, among which the pure cotton yarn, cotton blended yarn and purified fiber yarn increased by 13.09% - 44.84% The growth rate of fiber cloth is the largest. Month by month, since April, the stock of yarn warehouse has gradually decreased year-on-year, while the cloth inventory has continued to fluctuate and rise. Compared with April, the year-on-year decrease of yarn inventory in December has narrowed by 41.60 percentage points, and the stock growth of cloth warehouse has increased by 5.65 percentage points. It can be seen that by the end of December, yarn inventory was at a historical low. Spinning enterprises strictly controlled production and sales, produced according to the order, and quickly produced and sold, avoiding production risks by reducing inventory.

According to the data of raw material inventory, in 2020, the total inventory of cotton textile enterprises increased by 0.37% year-on-year, of which raw cotton inventory decreased by 3.69%, import cotton stock decreased by 8.71%, and non cotton fiber inventory increased by 11.92%. It can be seen that textile enterprises have begun to adjust the product structure to cope with various factors, and the use of non cotton fiber has increased rapidly. Month by month, since February, the year-on-year decline in raw material inventory has continued to shrink, and from negative to positive in July. With the gradual improvement of cotton textile enterprises' confidence in the future market, the willingness to purchase raw materials has increased, and the inventory has increased.

3. The domestic market demand was released and the main economic indicators were gradually restored

According to the data, in 2020, the main business income of cotton textile enterprises decreased by 8.62%, the cost of main business decreased by 8.43%, the total profit decreased by 13.83%, the export delivery value decreased by 19.59%, the industrial added value decreased by 9.03%, and the loss area increased by 0.83%.

From a monthly perspective, the year-on-year decline of other major economic indicators, except for the value of export delivery, has been shrinking since February, showing the strong resilience and vitality of China's domestic demand market. Among them, compared with February, the cumulative decrease rate of main business income in December was narrowed by 21.87%, the total profit was reduced by 57.91%, the industrial added value was reduced by 19.06%, the number of loss making enterprises was reduced by 59.63%, and the loss area was reduced by 18.60%. The state introduced tax reduction and fee reduction measures to continuously reduce the burden of enterprises. The cost of main business decreased significantly year-on-year, but the total profit of enterprises decreased more than the cost of main business. In 2020, the profit margin of tracking enterprises decreased by 0.27% year-on-year.

In general, although affected by the Xinguan epidemic, the production and operation of the cotton textile industry in 2020 will go out of a "V" shape curve, from a large area of negative growth in the first quarter to a continuous narrowing and marginal improvement since the second quarter. In the fight against the epidemic situation and resumption of production, the cotton textile industry will gradually recover, and the economy will rise from the bottom to be stable. At present, there is still great uncertainty in the global epidemic situation, the economic downturn is difficult to reverse, and the global supply chain is facing great adjustment, which is both a challenge and an opportunity. At the same time, the domestic market will continue to maintain the recovery trend. In the "14th five year plan" period, under the new development pattern of "double cycle", China will establish a more solid economic foundation and a more perfect foundation Facilities, more superior innovation environment, cotton textile industry urgently need to improve their internal skills, in the new development pattern to think and seek a new direction.

This report covers the data of more than 260 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.