Domestic Cotton Textile Industry Decline For Two Consecutive Months Narrowed

In June, the cotton textile boom index was 48.94, with the decline rate narrowing for two consecutive months. This month, the off-season effect of the domestic textile market gradually appears, and the order pressure of textile enterprises has increased. In terms of raw materials, in order to reduce the pressure of capital and inventory, the main procurement method is to buy as you use it; in terms of production, the starting rate of this month has increased slightly compared with that of last month, and the production of gauze has increased compared with that of last month; in terms of product sales and inventory, conventional products are better than combed cotton products, and textile enterprises are selling at lower prices, hoping to recover funds as soon as possible, but the orders are relatively light, production is greater than sales, and product inventory is still increasing Plus.

On the domestic side, on June 30, the State Grain and material reserve bureau and the Ministry of Finance officially announced that the rotation policy of public concern was finally implemented. The implementation of the "circuit breaker" mechanism: when the domestic market cotton spot price index is lower than 11500 yuan / ton, trading will be suspended from the next working day to strongly support the domestic cotton price. According to the survey conducted by China Cotton Textile Industry Association (hereinafter referred to as the China Cotton Association), more than 70% of the surveyed enterprises think that it is beneficial for textile enterprises to store cotton abroad. At the same time, some textile enterprises said that at present, traders auction more reserves, squeezing the storage space of textile enterprises auction. During the rotation period, the enthusiasm of the auction and storage enterprises was high. As of the publication date, all transactions were kept, and the price increase gradually returned to rationality. According to the General Administration of foreign trade, the overall performance of China's import and export in July is expected to be good. In the first half of this year, China's textile and garment exports totaled US $125.19 billion, a year-on-year increase of 3.16% (in RMB terms, a year-on-year increase of 6.75%), and the overall export of the industry recovered to positive growth. Among them, textile exports from January to June totaled 74.103 billion U.S. dollars, a year-on-year increase of 27.81% (in terms of RMB, a year-on-year increase of 32.37%); clothing exports totaled $51.08 billion, a year-on-year decrease of 19.39% (in terms of RMB, a year-on-year decrease of 16.67%). The main reason for the growth of textile export is still driven by the export of epidemic prevention materials. Clothing, home textile and other textiles are under great pressure due to the weak demand of foreign consumer market, and China's export-oriented textile enterprises are struggling.