Market Observation: The Data Shows That The Consumption Intensity Of Domestic Clothing Demand Is Declining

Consumption of domestic clothing market declines

According to the data of the National Bureau of statistics, the sales volume of clothing, shoes, hats, needles and textiles above the quota in April was 79.1 billion yuan, down 17.6 percentage points month on month and 22.8 percentage points lower than the same period last year.

In April, repeated outbreaks occurred in many regions of China, including Shanghai, which significantly affected the sales of clothing products, and put great pressure on the domestic demand market; In June, although the epidemic situation has been under control, it is difficult to improve the market consumption power. In the case of rising prices, residents' consumption of non necessities has been significantly reduced. In the short term, it is difficult for China's residents to change their consumption of clothing.

China's textile consumption in overseas markets is decreasing

According to customs data, in April this year, China's textile and clothing exports reached 23.59 billion US dollars, an increase of 7 percentage points over the same period last year; From January to April this year, China's textile and clothing exports reached US $95.84 billion, an increase of 8.6% year-on-year. Among them, textile export reached 48.82 billion US dollars, up 11.1% year on year; Clothing exports reached US $47.02 billion, up 6.2% year on year.

Although the monthly data and cumulative data showed a growth pattern on a year-on-year basis, the growth rate slowed down. In terms of segmentation, the growth rate of China's textile and clothing export in April (1.6% in US dollar) fell by 15.2% compared with that in March; From January to April, China's textile and clothing export value growth decreased by 2.6 percentage points compared with that in the first quarter. Since the second quarter, the textile and clothing industry has been affected by the epidemic situation in many places, and foreign trade has been under great downward pressure.

The spinning capacity of spinning enterprises decreased and the finished yarn overstocked seriously

According to the national statistics, in April this year, China's yarn output was 2.21 million tons, a year-on-year decrease of 8.9 percentage points; From January to April this year, China's yarn output was 8.703 million tons, a year-on-year decrease of 1.6 percentage points.

However, according to the research conducted by Mysteel cotton team, in early April this year, yarn inventory in major cities of China increased by 5.6 days compared with the previous period of 29.8 days, and the inventory increased by 16.5 days compared with the same period of last year, and the inventory was at a high level in nearly three years. However, the latest survey data show that in early June, yarn inventory in major cities in China was 27.3 days, which was 2.5 days lower than that in April, but still higher than the average of recent three years (average 23.9 days from 2019 to 2021) 3.4 days.

In the monthly and annual comparison of yarn output showed a downward trend, the finished yarn inventory of spinning enterprises was still at a high level, and it was difficult to decline. The risk of expanding the inventory of textile enterprises was high, and the pessimism was fermented.

On the whole, China's textile industry is facing the situation of excessive supply, high price of raw materials, weak demand and upside down profits, which indicates that China's cotton price will be under pressure for a long time.