China'S Cotton Textile Industry Boom Report In May 2021

In May, China's economy maintained a stable recovery, and industrial production grew steadily. The added value of industries above Designated Size nationwide increased by 8.8% year-on-year and 0.52% month on month; Market sales continued to recover. The total retail sales of social consumer goods increased by 12.4% year-on-year and 0.81% month on month. The enterprise benefits continued to improve and development toughness continued to show. From the industry point of view, production maintains growth, market sales rebound, and business operation is stable and good. The operation situation of China's cotton textile industry is basically consistent with that of the whole country.

In May, China's cotton textile boom index was 51.24, up 2.04 from April. From the sub index point of view, each index rose month on month. Among them, raw material purchasing index, production index, product sales index, product inventory index, enterprise operation index and enterprise confidence index were in the expansion range, and the raw material inventory index was lower than the Kuo Rong line.

Raw material purchasing index

In May, the raw material purchasing index was 50.43, up 2.78 from April. From the perspective of market price, with the inflation in the United States exceeding expectations, the US Federal Reserve's tightening policy may start ahead of schedule. The international cotton price will rise first and then fall, and the domestic cotton price will fluctuate weakly, but the overall average price will rise month on month. The average cotook a index of the month was 90.89 cents / pound, up 0.16 cents / pound month on month. The average price of 3128 grade cotton was 16116 yuan / ton, up 553 yuan / ton month on month; In terms of chemical fiber staple fiber, the price of viscose staple fiber maintained stable operation in the first ten days of the month. At the end of the month, manufacturers lowered the sales price to promote sales. Affected by the external market, the price of polyester staple fiber showed a downward trend in the month, and the monthly average price did not change much compared with April. The average price of mainstream viscose fiber in that month was 13723 yuan / ton, down 1202 yuan / ton month on month; The short average price of 1.4d direct spinning polyester was 6797 yuan / ton, up 18 yuan / ton month on month. From the purchasing situation of cotton spinning enterprises, the purchasing situation of non cotton fiber is better than that of cotton, among which the cotton purchasing index is 45.89, and the non cotton fiber purchasing index is 54.01.

Stock index of raw materials

In May, the raw material inventory index was 48.73, which was below the dry and prosperous line, but the index value rose by 0.06.in may, the upstream raw material price fluctuated frequently, and the enterprise said that affected by the cash flow pressure, the raw material purchase was mainly based on the demand, and the overall inventory decreased month on month. In terms of cotton import, according to customs statistics, China imported 170000 tons of cotton in May, with a month on month decrease of 60000 tons or 26%. According to the survey data of China Cotton Textile Industry Association (hereinafter referred to as "China Cotton Industry Association"), in May, the proportion of enterprises with cotton inventory decreasing month on month was 40.08%, which was 11.5 percentage points higher than that of rising enterprises; The proportion of enterprises whose non cotton fiber inventory decreased month on month was 41.51%, which was 13.82 percentage points higher than that of rising enterprises.

Production index

In May, the production index was 52.07. According to the survey, the start-up of most cotton textile enterprises remained stable, and the start-up rate of some small and micro enterprises was slightly increased. The overall start-up situation of spinning mills was better than that of textile mills. According to the survey data, 24.44% of the enterprises with a month on month increase in the start-up rate, which is 18.97 percentage points higher than that of the declining enterprises; In terms of output, the increase of yarn output is slightly higher than that of cloth. According to the survey data, the proportion of enterprises with yarn output increasing on a month on month basis was 46.55%, 22.8 percentage points higher than that of declining enterprises, 47.49% of which were higher than those of declining enterprises, and 22.03 percentage points higher than those of declining enterprises.

Product sales index

In May, the product sales index was 52.99. From the perspective of market price, cotton yarn price continued the upward trend at the end of April, driven by cotton price and market situation. Grey cloth price was in the upward channel in the first half of the month, and remained stable in the second half of the month. According to the specific data, the monthly average price of 32 cotton combed yarn was 25125 yuan / ton, with a month on month increase of 811 yuan / ton or 3.3%. The monthly average price of pure cotton grey fabric (32 * 32 130 * 702 / 147 twill) was 5.97 yuan / ton, up 0.06 yuan / m or 1.02% month on month. From the perspective of orders, affected by the epidemic situation in Southeast Asia, some textile orders returned to China. Spinning mills with foreign trade as the main downstream customers said that orders in May were obviously more and more urgent than those in April, and some enterprises making pure cotton products said that orders could be arranged to August. According to the survey data, 44.94% of the enterprises whose yarn sales volume increased on a month on month basis, 11.15% higher than that of the declining enterprises, and 51.79% of the enterprises increased in cloth sales, 20.43% higher than those of the declining enterprises.

Product inventory index

In May, the product inventory index was 51.73, up 2.02 from April. According to the survey, the regular pure cotton knitted products went smoothly in that month, and the supply was in short supply, and the product inventory was low. In contrast, the viscose yarn market was slightly light, and the product inventory was gradually increased; Grey fabric, elastic cloth shipment significantly accelerated, weaving factory inventory decline. The product inventory of the research enterprises is basically maintained within 1 month. According to the survey data, the decline rate of cloth warehouse stock is slightly higher than that of yarn stock. The proportion of enterprises whose yarn stock decreases on a month on month basis is 45.72%, 12.78 percentage points higher than that of rising enterprises, and the proportion of enterprises with cloth warehouse stock decreasing on a month on month basis is 52.27%, which is 24.16% higher than that of rising enterprises.

Business operation index

In May, the business index of enterprises was 50.66, up 1.89 compared with the index in April. Among them, the main business income index was 51.69, and the total profit index was 49.63. In May, the price of gauze rose slightly, the speed of product delivery accelerated, the sales volume increased, and the business income rose significantly month on month. According to the survey data, the proportion of enterprises whose main business income increased month on month was 48.02%, which was 16.93 percentage points higher than that of declining enterprises. The rise of raw material prices in the upstream brings about the rise of production costs, and the acceptance of downstream customers is not high. The actual transaction is mainly through negotiation. Although the total profit index rose 1.86 month on month in May, the profit margin of cotton textile enterprises is still low. According to the survey data, 42.47% of the total profits decreased month on month, which was 3.71% higher than that of the rising enterprises.

Enterprise confidence index

In May, the enterprise confidence index was 51.35, up 0.29 from April. Recently, the global crude oil and other commodity prices have fluctuated greatly, and the short-term rise of global inflation has become a fact. The Fed's tightening monetary policy is expected to rise, and global liquidity may face an inflection point. At present, the epidemic situation in Southeast Asia continues, and enterprises are still optimistic about the market situation in the short term. On the domestic side, the economy has maintained a stable recovery, and the consumer market has a good recovery trend. The textile enterprises surveyed said that at present, the orders are mainly autumn and winter products, and the orders in spring are slightly started. It is expected that the market will maintain a stable and positive trend in the short term. According to the survey data, 30.3% of the enterprises think that the future market is optimistic and good, and 16.84% think that the future market is weak.