Market Analysis: The July Report Shows That The Inventory Of Textile Products Continues To Increase

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China Cotton Association released China cotton situation monthly report (July 2022). According to the monthly report, the domestic textile market was in the off-season in July, the supply of cotton resources in China was sufficient, cotton enterprises kept reducing cotton prices, actively selling and withdrawing payments, and domestic cotton prices were running in a weak position, and the price at the end of the month hit a new low since this year; The international cotton price is affected by the Federal Reserve's continued interest rate hike.

China's textile market continues to be in the off-season, the high-temperature power rationing start-up rate is insufficient, the finished product inventory pressure is large, the downstream demand is not significantly improved, the enterprise's raw material procurement is cautious, and the commercial inventory is slowly declining. According to the survey of China Cotton Association, the overall growth of cotton in China is good, and the yield per unit area and total output are expected to increase slightly year on year. In July, the state-owned storage cotton was launched, and the actual turnover was 39700 tons, with a transaction rate of 52%.

China Cotton Association predicts that cotton consumption in 2021 / 22 will be 7.3 million tons, down 13.36% year on year; The import volume was 1.7 million tons, a year-on-year decrease of 38%; The export volume was 30000 tons, up 10000 tons compared with the previous period; The inventory at the end of the period was adjusted to 8.29 million tons, up 1.8% year on year; The total cotton production in China is still 5.774 million tons.

In July, the domestic textile market was still in the off-season, the inventory of finished products continued to increase, the operating rate of high-temperature holiday in some regions decreased, and the textile output decreased month on month and year-on-year. Cotton enterprises are more active in sales, but due to insufficient orders of textile enterprises, enterprises are still cautious in purchasing raw materials, and the purchase volume has not increased significantly. According to the survey, yarn output decreased by 1.3% month on month, 16.5% year-on-year, cloth output decreased by 1.7% and 14.1% year-on-year. As of July 31, the inventory of cotton industry in the warehouse of textile enterprises was 578100 tons, which was 11000 tons less than the end of last month, and 265500 tons less than the same period last year.

China's textile and clothing exports increased by US $13.35 billion and US $13.35 billion respectively, with a slight increase of US $13.35 billion and a slight decrease of US $13.35 billion in textile and clothing exports compared with the same period last year; The export of clothing and accessories was US $19.64 billion, up 18.5% year-on-year and 8.9% month on month. From January to July 2022, China's textile and garment exports totaled US $189.36 billion, up 12.4% year-on-year, including US $89.8 billion, an increase of 11.9%; Clothing exports totaled US $99.56 billion, up 12.9%.

According to the data released by the National Bureau of statistics, the overall situation of consumer market recovery was maintained in July. The total retail sales of social consumer goods increased by 2.7% year-on-year, and the growth rate was 0.4% lower than that in June. Among them, clothing, shoes and hats, needles and textiles increased by 0.8% year-on-year.

In July, the domestic textile market is in the off-season, textile enterprises lack of new orders, cotton imports decreased compared with the previous month. According to the data of the General Administration of customs, in July, China's cotton import volume was 118000 tons, a month on month decrease of 27.5%, a year-on-year decrease of 17.0%. The source country, the United States, still ranked first, accounting for 80%.