Talk About Cotton Textile Situation In October

According to the tracking data of China Cotton Textile Industry Association, the overall cotton textile market continued to improve in October, the production and sales continued to increase, and the product inventory decreased further.

Raw materials: purchasing decreased month on month, consumption and inventory increased

In October, the raw material purchasing of tracking enterprises decreased by 1.88% on a month on month basis, of which, about 47% of the enterprises with a month on month decline accounted for an increase of 6% compared with the previous month. In October, the average price of domestic standard cotton was about 14600 yuan per ton, 14.3% higher than the average price in September, and the cumulative increase of 25.9% for five consecutive months. Cotton prices continued to rise to the end of October, and then declined. As of November 18, the average price of domestic standard cotton was about 14600 yuan per ton. The purchasing volume of non cotton fiber in raw materials increased by 10.64% month on month. In October, the prices of viscose staple fiber and polyester staple fiber rose, with the monthly average price rising by 13.8% and 7.23% respectively.

The raw material consumption of textile enterprises increased by 3.40% month on month, accounting for 58% of the total, an increase of 10 percentage points compared with the previous month. Raw material inventory decreased by 3.92% month on month, and increased by 7.23% compared with the same period of last year. Among them, raw cotton inventory decreased by 6.72% month on month. Cotton prices rose significantly in October. New cotton was gradually listed, and inventory risk increased. Enterprises judged that the rising trend might be unsustainable. They mainly bought and digested inventory as they used, and some enterprises appropriately increased the purchase and reserve of high-quality cotton. Non cotton fiber inventory increased by 4.39% month on month, accounting for 58% of the total.

Production: the cumulative year-on-year decrease in the output of yarn with equipment utilization rate exceeding 90% narrowed to single digit

In October, the output of yarn and cloth increased by 2.41% and 1.85% respectively. From January to October, the cumulative year-on-year decline of yarn output and cloth output of tracking enterprises decreased by 9.7% and 13.79% respectively. Since March, the cumulative year-on-year decline has continued to narrow, and the year-on-year decline of yarn output has narrowed to single digit for the first time since this year.

As of the end of October, the utilization rate of spinning and weaving equipment of tracking enterprises was above 90%, and the utilization rate of spinning equipment was slightly higher than that of weaving equipment. Compared with the previous month, the utilization rate of spinning equipment was 85%, which was higher than that of the last month, accounting for 85%, which was higher than that of the weaving enterprises, accounting for 85%. Compared with the same period of last year, the utilization rate of spinning and weaving equipment decreased by 2% and 5% respectively.

Sales: product sales increased month on month and inventory was further digested

In October, yarn sales increased by 6.00%, cloth sales increased by 2.40%, yarn and cloth inventory decreased by 15.01% and 3.61% respectively. In October, the prices of pure cotton yarn, pure viscose yarn and pure polyester yarn rose steadily as a whole, and began to decline at the end of the month.

Affected by the continuous impact of the overseas epidemic, orders from India and other regions continued to flow back. Driven by the "double 11" and Christmas orders, the production and sales situation of enterprises has improved significantly, reaching a small peak since this year. Since the end of October, the market has shown signs of weakening. In the same month, the prices of 32 pure cotton combed yarn, 32 pure viscose yarn and 30 pure polyester yarn increased by 15% on a month on month basis; the price of imported yarn showed an overall upward trend, among which the price of rapier 32 cotton yarn imported from Vietnam was slightly higher than that of 32 pure cotton combed yarn at home.

Operation: the cumulative year-on-year decrease of revenue continues to narrow, and the profit space is limited

As of the end of October, the loss of tracking enterprises was about 37%, about 10 percentage points higher than that of the same period of last year. From January to October, the total operating income of tracking enterprises decreased by 11.79% year-on-year. Among them, 78% of the enterprises decreased year-on-year, accounting for a decrease of 3% compared with the previous month, and the cumulative year-on-year decrease of 18.7% compared with February; the cumulative year-on-year decrease of export delivery value was 22.09%, 2.1% lower than that of the previous month; the total profit decreased by 29.84% year-on-year, among which 69% of the enterprises decreased year-on-year, Compared with the previous month, the proportion decreased by 1 percentage point, and the cumulative year-on-year decrease of 42 percentage points compared with February. In October, the price of raw materials rose significantly, and the price of products did not follow the increase of raw materials. Although the sales were smooth, the profit margin was limited.

Cluster: Production accelerates recovery and opening rate continues to rise

In October, we will continue to track the overall recovery rate of the cluster according to the overall situation of the cluster.

According to the economic operation data, compared with the same period last year, the output, output value and other indicators of the tracking cluster from January to October 2020 decreased year on year, and the decline rate continued to narrow compared with the previous month. In terms of output, the total yarn output of cluster enterprises decreased by 17.9% and cloth output by 20.4% year-on-year; in terms of economic indicators, the operating income of cluster enterprises decreased by 18.9% and the total profit decreased by 38.4%.

It is understood that some cluster enterprises said that the market recovery momentum was good in October, the production orders were basically full, and the number of enterprises with 100% opening rate in the cluster increased, but the enterprises were cautious about the follow-up development. More than 85% of the enterprises are in the cluster, and the average start-up rate of enterprises is about 65%.