Summary Of Cotton Textile Industry'S Overall Operation In June

In June 2016,

The overall operation of the industry is stable.

The price has risen slightly, and the purchasing volume has increased. However, the downstream market demand is insufficient, the export pressure is bigger, the production orders are tight, the gauze turnover is less, and the inventory pressure is bigger.

First, the price of raw materials has increased and the volume of purchases has increased.

Entering the June, domestic and foreign cotton prices continued to rise, as of 21 days, 3128B level.

The price index was 12960 yuan / ton, up 0.3% this month.

Cotton prices fluctuated to 75.05 cents / pound at the same level, rising 3.2% this month. After 1% tariff, the cotton price difference between inside and outside is about 350 yuan / ton.

With the increase of cotton prices, many enterprises have increased procurement volume. Tracking data show that in May, the purchase volume of raw cotton increased by 2.8%.

This month, WTI crude oil futures prices rose slightly, as of 20 days, at 49.4 U.S. dollars / barrel, PTA market prices bottomed out 3.8%, 1.4D straight spinning polyester staple fiber prices increased slightly, 0.3% increased; mainstream viscose staple fiber prices were running high, 13580 yuan / ton, tracking data showed that non cotton fiber purchasing volume increased by 6.9%.

Two, the cotton turnover rate has dropped slightly, and the stock of raw cotton has declined.

As of June 20th, the total turnover of cotton reserves was about 877 thousand tons, and the turnover volume of imported cotton and domestic cotton was 296 thousand tons and 581 thousand tons respectively. The turnover rate was 98.16% and 96.74% respectively. Overall, only about 30 thousand tons per day supported a relatively high turnover rate. As the proportion of imported cotton dropped in June, the purchase intention of the enterprises decreased, and the price of the auction was higher, and the cost performance of the cotton reserve was lower than expected.

Investigation and understanding, many enterprises participate in the auction of cotton reserves, use reserve cotton to replenish inventory, but the problem of "going out of the storehouse" and "slow releasing" delays the arrival time of cotton raw materials, resulting in lower inventory.

Tracking data showed that in May, the inventory of raw cotton decreased by 0.05%.

From the perspective of policy guidance, relevant departments of the state have been studying and releasing relevant policies and measures to solve the difficulties encountered in the delivery of cotton reserves.

It is estimated that in the future, with the increase of cotton prices and the purchase of cotton reserves, the enterprises will replenishment.

Three, the operation of the industry is stable and export pressure is greater.

It is understood that the textile market in May as a whole runs smoothly, and the output is increasing. Tracking data show that the yarn and cloth output increased by 2.3% and 0.8% respectively.

In June, orders fell slightly during the off-season.

According to customs data, in 2016 1-5, China's textile and clothing exports totaled US $100 billion 630 million, down 2.3% from the same period last year.

Among them, textile exports amounted to 43 billion 220 million US dollars, down 0.5% compared with the same period last year, and clothing exports were 57 billion 410 million US dollars, down 3.6% compared with the same period last year.

From 3 to May, China's textile and clothing exports continued to narrow, showing signs of a rebound in exports.

However, due to the weak demand in the international market, the export pressure is still relatively large.

Four, gauze sales pressure is bigger.

In May, cotton prices rose, the yarn price pmission effect was not obvious, and the market turnover rate was not high. Tracking data showed that the cotton yarn ratio decreased by 3%. Under the influence of downstream warming, the shipment volume of cotton fabric increased and the annulus ratio increased by 5.9%.

In June, cotton prices continued to rise. As of 20 days, the price of pure cotton yarn CYC32S yarn was 19675 yuan / ton, a recent high, rising 1.3% this month. The price of pure cotton yarn has become a high level. The price of pure cotton CGC32 grey cloth is 5.352 yuan / m, a slight increase of 0.1%.

Gradually entering the off-season, the industry sales pressure is still huge.

In May, the price of chemical fiber gauze fell, many enterprises increased sales promotion and increased volume. Tracking data showed that the sales of chemical fiber gauze increased by 5.2% and 11.4% respectively.

Entering the market in June, the market turnover was light, and the chemical fiber gauze was weak. As of 20 days, CYT32 quoted 11000 yuan / ton, CYR30 yarn quoted price 18050 yuan / ton, and CGR30 grey cloth quoted price 4.481 yuan / ton, down 0.1%, 0.4%, 0.07% respectively.

The market has not seen a marked recovery, and the shipment speed is expected to slow down.

Five, tight stock of products

In May, the pressure on enterprise inventory increased. Tracking data showed that yarn inventory increased by 3.3% in May. Although the inventory dropped by 1.75%, it was mainly due to the concentrated sales of individual large enterprises, and inventory dropped significantly.

In June, production gradually entered the off-season. Reducing inventory remained one of the effective measures for enterprises to maintain production and operation.

The data of this report are from the China Cotton Textile Industry Association.