China Cotton Industry Association: China Cotton Textile Industry Prosperity Report In March

In March, under the sustained and significant effect of various stable growth policies, industrial production has undergone positive changes, market demand has gradually warmed up, the industrial chain supply chain has accelerated its recovery, market expectations have improved significantly, and the national economy is operating well. From the perspective of industry, the production and sales of enterprises have remained stable, the domestic market has recovered rapidly, and the business operation of enterprises has improved compared with the previous period. However, the international environment is still complex and severe, and there is uncertainty in the foreign trade market, so we hold a wait-and-see attitude towards future enterprises.

In March, the prosperity index of China's cotton textile industry was 50.81, down 2.36 from February, higher than the critical point, and the industry's prosperity level remained expanding. From the perspective of sub indexes, among the seven sub indexes that constitute the prosperity index of China's cotton textile industry, the raw material purchase index, production index, product sales index, and enterprise operation index are all higher than the boom dry line, while the raw material inventory index, product inventory index, and enterprise confidence index are lower than the boom dry line.

　　 Raw material purchase index

In March, the raw material purchase index was 51.63, down 2.25 from February, and still above the critical point. From the perspective of raw material market prices, cotton prices rose first and then fell, polyester staple prices fluctuated and rose, and viscose staple prices declined slightly. Specific data: the monthly average spot price of domestic 3128 cotton is 14717 yuan/ton, down 292 yuan/ton month on month, or 1.95%; The average monthly price of 1.4D direct spinning polyester is 7317 yuan/ton, up 98 yuan/ton month on month, or 1.36%; The monthly average price of mainstream viscose fiber is 13055 yuan/ton, down 53 yuan/ton month on month, or 0.41%. In the expectation of the peak season in the current month, enterprises increased their willingness to purchase raw materials and increased their purchase volume of raw materials, especially the purchase volume of chemical staple fiber, which increased significantly from February.

　　 Raw material inventory index

In March, the raw material inventory index was 49.71, down 1.42 from February, lower than the critical point. With the gradual recovery of market demand, the production of enterprises has accelerated and the consumption of raw materials has increased. At the same time, due to the uncertainty of the future market, the raw material inventory of the enterprise remained at a low level, so the raw material inventory index declined. From the sub index, the cotton inventory index was 50.49, down 1.12 from February; The non cotton fiber inventory index was 48.93, down 1.73 from February. The enterprise's cotton inventory level was higher than that of chemical staple fiber.

　　 Production index

In March, the production index was 51.52, 2.63 lower than that in February, continuing to be higher than the critical point and in the expansion range. The cotton textile enterprises started in a good situation that month. Most enterprises opened at full capacity, and some enterprises started to decline due to insufficient orders. As a whole, the industry production was basically stable. From the sub index, the equipment opening rate index of cotton textile enterprises was 49.83, down 3.34 from February. In terms of output, the yarn output index was 53.58, down 2.51 from February, and the cloth output index was 52.71, down 1.13 from February, indicating that the yarn output continued to increase.

　　 Product sales index

In March, the product sales index was 50.94, down 2.56 from February, and still above the critical point. From the market price point of view, due to the downward shift of cotton price center, yarn prices have also been reduced to varying degrees, and the adjustment of grey cloth prices has lagged slightly. In that month, the average monthly price of 32 pure cotton combed yarns was 22844 yuan/ton, a month on month decrease of 208 yuan/ton, or 0.9%, The average monthly price of pure cotton grey cloth (32 * 32 130 * 70 2/1 47 "twill) was 4.75 yuan/meter, up 0.11 yuan/meter month on month, or 2.37%. From the perspective of market sales, the domestic market performed relatively well, with new orders mainly in small batches, while export orders were relatively sluggish. In that month, the yarn sales index was 52.13, down 3.65 from February; the cloth sales index was 51.62, down 2.62 from February.

　　 Product inventory index

In March, the product inventory index was 49.8, down 1.52 from February, lower than the critical point, indicating that the enterprise's product inventory increased slightly. Due to the small number of new orders in that month, the inventory of conventional grey fabric products in most cotton textile enterprises rose to about one month, and the inventory of differentiated products remained at about 20 days. From the sub indicators that constitute the product inventory index, the yarn inventory index was 50.03, down 1.46 from February; The fabric stock index was 49.47, down 1.6 from February, indicating that the yarn stock level was slightly better than grey fabric.

　　 Business operation index

In March, the enterprise operation index was 51.37, down 2.71 from February, higher than the critical point, and still in the expansion range. In that month, the production and marketing progress of the enterprise was stable, and the overall operating efficiency was good. Due to the small number of export orders, enterprises have cut prices and scrambled for orders, compressing the profits of enterprises. From the sub indicators that constitute the enterprise operation index, the main business income index was 51.96, down 4.7 from February; The total profit index was 50.79, down 0.71 from February, indicating that the business operation was still in a boom level.

　　 Enterprise confidence index

In March, the enterprise confidence index was 48.68, down 2.62 from February, lower than the critical point. At present, the risks in the global financial market are rising, the international trade environment is complex and changeable, and the foreign trade market is highly uncertain. Although the domestic economy has started well, there are still insufficient constraints on market demand. The price of gauze products is in a downward trend, and it is difficult for enterprises to recover their benefits. Most enterprises hope that downstream demand will improve before the off-season.

Note: The prosperity index of China's cotton textile industry is collected from nearly 500 secondary cotton textile enterprises in the country. Referring to the index formulation method such as the national manufacturing PMI, it is calculated by weighting several major indicators. When the index is higher than 50, it means that the prosperity of the cotton textile industry in this month is better than that in last month. If the index is lower than 50, it means that the prosperity in this month is less than that in last month.

(Source: China Cotton Association)