[Cotton Textile Production] Decline In Production And Marketing Situation And Adjustment Of Textile Enterprises

According to Chinese cotton Spin The Industry Association (hereinafter referred to as the Sino Cotton Association, the same below) tracking data show that in May compared with April, the cotton textile enterprises production and marketing situation has declined significantly, and the finished product inventory pressure has further increased.

Raw materials: prices fell rapidly, purchases continued to slow down

Raw material cotton purchasing in raw materials decreased by 3.51% compared with the same month. In May, the average monthly price of domestic standard cotton decreased by 4.4%. As of mid June, the price fell below 14000 yuan / ton, and the reserve cotton traded 203 thousand tons. The single day turnover rate gradually declined from 100% in the first week of the launch, the purchase volume of imported cotton in the raw cotton decreased by 18.21%, and the international cotton price decreased by 8% compared with that of the first month.

The purchase amount of non cotton fiber in raw materials decreased by 1.6%. The price of polyester staple fiber and viscose staple fiber continued to decline. In May, the cumulative decline was about 1000 yuan per ton, while the monthly average price decreased by 8% and 4.7% respectively, and the price fell to 7500 yuan / ton and 11000 yuan / ton as of mid June respectively.

Tracking data in May 2019 showed that the raw material inventory of cotton textile enterprises decreased by 5.19%. The price of cotton, polyester staple fiber and viscose staple fiber has dropped rapidly, resulting in a large economic loss of raw material inventory of spinning enterprises. Three At present, the market has entered the off-season, raw material demand is at a low level, raw material prices show a continuous downward trend and there is no sign of stop, the price trend is not clear, and the textile enterprises have been reducing inventory for two consecutive months, so as to avoid the risk of devaluation in the later stage.

Production: the cumulative production of gauze has increased by a year earlier.

Tracking enterprise data shows that the production situation of cotton textile enterprises has slowed down. Judging from the cumulative year-on-year situation, 1-5 months of yarn production decreased by 4.8% year-on-year, a 4.5 percentage point increase from last month, while cloth production decreased by 5.57% compared with the same period last year, a decline of 3.4 percentage points from the previous month. In May, yarn production and cloth output continued to decline, and the decline was basically the same as last month. Overall, the performance of pure cotton products has declined further than last month, and differentiated products are better than conventional products.

According to investigation and research, by the continuous escalation of Sino US trade war, the downstream orders decreased substantially since May, and some enterprises reduced to two digits. In order to maintain a certain rate of operation, ensure liquidity and prevent staff turnover, some enterprises adjust their product mix and increase the proportion of high count yarn, which is one of the reasons leading to the decline in production.

Up to the end of May, the number of spinning enterprises that accounted for less than 70% of the total number of enterprises was tracked, and the proportion of weaving enterprises accounted for more than 60%. The utilization ratio of spinning and weaving equipment decreased by 1.5 percentage points compared with the same period last year. The total electricity consumption in 1-5 months decreased by 2.7% compared with the same period last year. It is understood that some enterprises adjust their shifts, reduce their working hours, or choose weekends off.

Sales: year-on-year decline in production and sales rate and further increase in inventory pressure

Tracking enterprise data shows that 1-5 months, yarn sales volume decreased by 8.67% year-on-year, a 4.8 percentage point increase from last month, and sales volume decreased by 5.71% compared with the same period last year, a decrease of 3.8 percentage points from the previous month. In May, sales of yarn and cloth decreased by 5.07% and 2.66% respectively. By the end of May, the production and sales rate of gauze products had dropped by 1.3 percentage points over the same period last year, and sales in 1-5 months have declined for the first time since the beginning of this year.

From the price point of view, May cotton category, chemical fiber The prices of staple yarn and cloth products were all lower than the same month, falling by 2% to 5%, and the price of yarn products was reduced by 500~1000 yuan / ton. Although the price fell rapidly, due to the escalation of Sino US trade frictions and weak market demand, the confidence in the upstream and downstream industries of the industry chain was greatly affected.

As of the end of May, the yarn and cloth inventory increased by 9.23% and 5.51% respectively, the increase was further expanded from last month. Tracking enterprises, yarn, cloth product inventory increase of enterprises accounted for more than 70%. Under the shortage of orders, in order to maintain normal operation, some textile enterprises increased conventional products, resulting in a further increase in inventory pressure, and more enterprises finished product inventory in 40~60 days.

Cluster: further improvement of enterprise concentration

In May, the production of cluster enterprises slowed down, and the average operating rate of clustered enterprises was around 85%, down from last month. The number of enterprises in the cluster decreased slightly compared with the same period last year, and the average number of employees declined.

Tracking cluster yarn production capacity, output and cloth production decreased year by year, cloth production capacity grew year on year. In 1~5 months, the tracking capacity of cluster spinning decreased by 1.2% compared with the same period last year, and the output of all kinds of yarns dropped by 5.9% compared with the same period last year. The number of looms increased by 1.8% compared with the same period last year, and the total output of fabrics decreased by 13.9% compared with the same period last year.

From the main economic indicators, the main business revenue and profit of cluster enterprises decreased year by year. In the 1~5 month, the main business revenue and profit of cluster enterprises decreased by 2.2% and 9.8%, respectively, of which the number of enterprises decreased by 1.4% and 0.5% respectively.