The Output Of Gauze Has Increased Month On Month For Two Consecutive Months, And The Year-On-Year Decline In Revenue And Profit Has Narrowed Significantly

According to the tracking data of China Cotton Textile Industry Association, cotton textile production increased slightly in July compared with the previous month, sales were weak, and inventory pressure further increased.

Raw materials: procurement and consumption of more than half of enterprises increased month on month

In July, the raw material purchase of tracking enterprises increased by 5.38% month on month, of which the enterprises that increased month on month accounted for about 53%, a decrease of 6 percentage points over the previous month. The purchase of raw material Zhongyuan cotton increased by 6.44% month on month. In July, the average price of domestic standard cotton was about 12300 yuan per ton, 1.5% higher than the average price in June, and 7.7% higher for three consecutive months. In July, the reserve cotton rotation was launched, and 189200 tons of goods were sold that month, with a transaction rate of 100%. Non cotton fiber procurement in raw materials increased by 3.41% month on month. In July, viscose staple fiber and polyester staple fiber prices continued their downward trend in June, with monthly average prices falling 4.1% and 7.7% month on month respectively. By the end of July, compared with the prices at the beginning of the year, the prices of viscose staple fiber and polyester staple fiber had dropped by 12% and 24% respectively.

In July, the raw material consumption of cotton textile enterprises increased by 1.32% month on month, and the enterprises that increased month on month accounted for about 59%, 3 percentage points less than that of last month. By the end of July, raw material inventory had increased by 2.62% month on month and 3.29% year on year. Affected by the market situation, downstream orders are cautious, and reserve cotton is continuously put into production. Textile enterprises mostly buy and use as needed to reduce capital risk.

Production: gauze production increased month on month, and equipment utilization rate decreased slightly month on month

In July, yarn and cloth output increased by 1.41% and 2.35% month on month respectively. From January to July, the output of yarn and cloth of tracking enterprises decreased by 13.50% and 15.62% year on year, respectively, and the decline narrowed for five consecutive months, 10.4 and 11.8 percentage points lower than the cumulative year-on-year decline in February.

By the end of July, the utilization rate of spinning and weaving equipment of tracking enterprises had slightly decreased compared with that of last month, and the utilization rate of spinning equipment was slightly higher than that of weaving equipment. Among them, the enterprises whose spinning equipment utilization rate is higher than 85% accounted for 73%, 2 percentage points lower than that of last month; The enterprises whose utilization rate of weaving equipment is higher than 85% accounted for 71%, 1 percentage point lower than that of last month. Compared with the same period last year, the utilization rate of spinning and weaving equipment decreased by about 5 and 9 percentage points respectively.

Sales: gauze sales increased and inventory decreased month on month

In July, yarn sales increased by 3.46% month on month and cloth sales decreased by 1.82% month on month. The yarn inventory slightly increased by 0.31% month on month, and the cloth inventory increased by 2.94% month on month. The price of pure cotton yarn was basically stable that month; The prices of pure viscose yarn and pure polyester yarn both showed a downward trend, with the monthly average prices falling by 3% and 5% month on month respectively. By the end of July, compared with the beginning of the year, the prices of pure cotton yarn, pure viscose yarn and pure polyester yarn had dropped by 9%, 18% and 18% respectively. According to the data of the General Administration of Customs, China imported 170000 tons of cotton yarn in July, an increase of 20000 tons month on month. Take 32 pieces of pure cotton combed yarn as an example, the import price from India is about 200 yuan per ton lower than that in China. It is understood that since July, the market situation has not changed significantly. Although the inquiry phenomenon has increased, the actual orders are still few; The conventional yarn is better than the high count yarn, but there are many price depressions and the profit of the enterprise is thin.

Operation: the cumulative year-on-year decrease in revenue and profit is significantly narrower than that at the beginning of the year

By the end of July, the loss area of tracking enterprises was about 42%, about 13 percentage points higher than that of the same period last year, and about 4 percentage points lower than that of last month. From January to July, the operating revenue of tracking enterprises dropped 14.67% year on year, of which about 88% decreased year on year, accounting for 2 percentage points less than that of last month, and 15.8 percentage points less than that of February; The cumulative year-on-year decline of export delivery value was 26.78%, 2 percentage points lower than that of the previous month; Total profits fell by 37.33% year on year, of which 76% of enterprises fell year on year, 5 percentage points lower than that of the previous month, and 34.4 percentage points narrower than that of February.

Cluster: some enterprises are affected by rainstorm and flood

According to the follow-up survey on the cluster situation, the cluster production did not improve in July, and the enterprise operating rate and equipment utilization rate were at a low level.

According to the economic operation data, compared with the same period of last year, from January to July, the output, output value and other indicators of the tracking cluster declined significantly, and the decline was narrower than that of last month. The output of various types of yarns of cluster enterprises dropped 29.1% year on year, and the output of cloth dropped 31.3% year on year; Operating revenue decreased by 23.6% year on year, and total profit decreased by 54.4% year on year.

It is understood that the enterprise, on the one hand, takes advantage of this to cultivate internal skills and improve production and management level; On the other hand, adjust the product structure, produce products with slightly better sales, actively respond to the current market situation, and wait for the market to recover. In the same month, there was a rainstorm and flood disaster in China, and some cluster areas were greatly affected, and the power on rate declined significantly. By the end of August, the average operating rate of the tracking cluster was about 60%, of which the operating rate of enterprises above the designated size was about 75%, and the operating rate of enterprises below the designated size was insufficient; The opening rate of enterprises is lower than the operating rate.

The data in this report are all from the China Cotton Textile Industry Association, involving more than 240 cotton textile enterprises and about 15 industrial clusters nationwide. The total spinning capacity accounts for about 60% of the national cotton textile industry, which is representative of the industry.

This report is strongly supported by "Zhengzhou Commodity Exchange".