China Cotton Industry Association: Monthly Analysis Report Of China'S Cotton Textile Industry In October

October was the traditional peak season of the cotton textile market, but the market demand was weak, and the purchase and sales continued to decline compared with September. Textile enterprises had overstocked product inventory, reduced orders on the machine, and few subsequent new orders. The market maintained the risk control of purchasing by order. Cotton prices fell sharply, cotton yarn and grey cloth prices fell with the increase in financial pressure on textile enterprises.

　　 The output of yarn and cloth decreased year on year

Insufficient orders, yarn and cloth production declined. According to the data of the National Bureau of Statistics, from January to October, the yarn output of cotton textile enterprises above designated size dropped 1.15% year on year, 0.04 percentage points lower than that from January to September; The cloth production has decreased by 4.22% year on year, 0.8 percentage points more than that from January to September.

YOY growth rate of yarn and cloth output of cotton textile enterprises on the scale

　　 Export faces pressure and domestic consumption slows down

The world economy is slowing down, and the development of foreign trade in the industry is under pressure. According to the data of the General Administration of Customs, from January to October, China's textile and clothing exports fell by 9.2% year on year, 0.3 percentage points lower than the previous three quarters. Among them, the export of cotton textiles and clothing fell 14.3% year on year, 5.1 percentage points deeper than that of textiles and clothing; Exports to major developed markets declined significantly, including 20.9% to the United States, 25.6% to the European Union and 22.9% to Japan. In October, China's textile and clothing exports fell 4.8% year on year, the same as that in September, of which textile exports fell 3.3% year on year, 1.1 percentage points higher than that in September; Clothing exports fell 6.0% year on year, 0.6 percentage points lower than that in September.

The growth rate of domestic terminal textile consumption slowed down. According to the data of the National Bureau of Statistics, from January to October, the retail sales of clothing, shoes and hats, and knitwear and textiles above the designated size increased by 10.2% year on year, 0.4 percentage points lower than that from January to September, and higher than the growth rate of 6.9% of the total retail sales of consumer goods; The online retail sales of physical goods and clothing goods increased by 7.6% year on year, 2.0 percentage points lower than that from January to September, and 11.2% lower than that of the national online retail sales.

YOY growth rate of retail sales of clothing, shoes and hats, knitwear and textiles above designated size

　　 The price of products has declined and the pressure on funds has increased

In October, the domestic cotton spot price fell sharply, the overall downstream demand continued to be depressed, the prices of cotton yarn and grey cloth followed the decline, the inventory of finished products continued to accumulate, and textile enterprises reduced prices to promote sales, but the transaction was limited, the financial pressure increased, and the subsequent new orders were insufficient. Taking the price difference between 32 pure cotton yarns and 3128B standard grade cotton as a representative, the price difference of fancy yarn in October still remained at about 6000 yuan/ton. According to the spot profit, the enterprise was in a loss state.

Price and price difference trend of cotton and cotton yarn

　　 The decline of major economic indicators continued to narrow

The decline of major economic indicators of the cotton textile industry continued to narrow. According to the data of the National Bureau of Statistics, from January to October, the operating revenue of cotton spinning enterprises above designated size decreased by 7.03% year on year, 0.26 percentage points lower than that from January to September, and the total profit decreased by 3.11% year on year, 10.97 percentage points lower than that from January to September, with a loss of 26.90%, 0.98 percentage points lower than that from January to September; The operating revenue of cotton weaving enterprises decreased by 4.52% year on year, 1.89 percentage points lower than that from January to September, the total profit decreased by 4.83% year on year, 9.81 percentage points lower than that from January to September, the loss area was 21.31%, 1.73 percentage points lower than that from January to September. The benefits of cotton textile enterprises have gradually improved. From January to October, the total revenue and profit of cotton spinning and weaving industries above designated size decreased less than that of industrial enterprises above designated size and textile industries nationwide.

YoY performance of major economic indicators of industries above designated size, textiles and cotton textiles from January to September

Data source: National Bureau of Statistics.

YOY growth rate of business income of cotton textile enterprises on the scale

YOY growth rate of total profit of cotton textile enterprises on the scale

Change of loss area of cotton textile enterprises on the scale

YoY growth of export delivery value of cotton textile enterprises above designated size

On the whole, the global economic growth is expected to slow down, the textile supply chain has been deeply adjusted, China's exports to traditional markets have declined significantly, and trade with countries and regions along the "Belt and Road" has become a new driving force for export growth. The domestic economic operation continued to recover and the resilience, vitality and potential of economic development continued to emerge. The expected index of production and operation activities of manufacturing enterprises in October was 55.6%, which was in a high boom zone for four consecutive months. With the continuous improvement of the employment situation, it is conducive to promoting residents' income and will drive the increase of textile and clothing consumption.

(Source: China Cotton Association)