In The First Quarter, The Output Of Gauze Fell By 20% Over The Same Period Last Year.

According to the tracking data of the China Cotton Textile Industry Association in March 2020 (hereinafter referred to as the Sino Cotton Association), the production and marketing situation of the cotton textile industry has improved with the acceleration of the resumption of production and production. Since late March, the new crown epidemic has spread worldwide, and export orders have dropped sharply, and production has gradually slowed down. Recently, the order and inventory pressure of cotton textile enterprises has been further increased.

Raw material purchase increased steadily after cotton price fell.

In March 2020, tracking the purchase of raw materials for enterprises increased by 101.35%, of which about 92% of raw material purchases increased. Raw material cotton purchase volume increased by 107.20%. In March, the domestic standard cotton price averaged about 12000 yuan per ton, a decrease of 9.5% compared to the same period, continuing the downward trend in February. After four months in storage, the actual turnover volume was 371 thousand and 600 tons, with a turnover rate of 47%, which played a more significant role in supporting domestic cotton prices. Due to the intensification of the overseas epidemic, the oil war started, the US shares broke up for four times, the global commodity prices fell sharply, and the domestic cotton futures contract price fell below 10000 yuan per ton in recent months. Each country successively took measures to save the market, and domestic cotton prices rebounded.

The purchase amount of imported cotton in raw cotton is basically the same as last month. According to the General Administration of customs, China imported 610 thousand tons of cotton in the first quarter, a decrease of 8% compared with the same period last year. In March, the international cotton price index A averaged 67.69 cents per pound, a decrease of 11.6%, larger than the domestic cotton price decline, and continued to decline.

The purchase volume of non cotton fiber in raw materials increased by 91.33%. In March, the average monthly price of polyester staple fell by more than 10%, and the average monthly price of viscose staple fiber continued to be flat. With the crude oil price war "preliminary agreement on production cuts", polyester staple prices stabilized and the market pessimism eased.

Raw material consumption and inventory year-on-year decline

In March, the raw material consumption of cotton textile enterprises increased by 108.46%, and about 95% of the enterprises increased. In the first quarter, the consumption of raw materials for tracking enterprises increased by 24.32% year-on-year.

As of the end of March, raw material inventories decreased by 3.09%, of which 95% of raw cotton inventories increased, and 91% of non cotton fiber inventories increased. Compared with the same period last year, raw material inventories fell by about 16%.

The output of gauze decreased by 20% compared with the same period last year, and the utilization rate of equipment was less than 90%.

Tracking enterprise data shows that yarn and cloth output increased by 113.27% and 90.57% respectively in March. In the first quarter, the yarn production and textile production decreased by 23.91% and 20.20% respectively. In March, the upstream and downstream industries of the industrial chain gradually recovered, and the enterprises resumed their work and resumed production. In addition, the output base was low in February, resulting in a significant increase in the production chain, but it did not return to the same period last year.

By the end of March, the utilization ratio of textile and weaving equipment was around 88%, which was 10 and 14 percentage points lower than that of the same period last year. Among them, 77% of the enterprise spinning equipment utilization rate of more than 80%, accounting for 12 percentage points higher than last month; 80% of enterprises weaving equipment utilization rate of more than 80%, accounting for 2 percentage points higher than last month. It is understood that the production of masks increased gradually.

Recently, export orders have been largely cancelled or delayed, and the production of enterprises has been greatly affected. According to the enterprises, the direct export and indirect export orders have been significantly reduced, and the pressure from exports to domestic sales has been greater. The operating rate and start-up rate have declined, weaving enterprises are more obvious than the spinning enterprises.

The total sales volume of the gauze fell and the total profit fell by half.

Tracking business data shows that sales of yarn and cloth increased by 143.56% and 108.55% respectively in March. Affected by the global epidemic situation and the decline in raw material prices, the monthly average price of all kinds of gauze products decreased in varying degrees. Judging from the decline, polyester yarn price is larger than pure cotton yarn and viscose yarn.

By the end of March, the deficit of enterprises was 45.30%. In the first quarter, track business revenue decreased by 20.45% compared with the same period last year, of which 88% declined compared with the same period last year, and total profit decreased by 48.11% compared with the same period last year, of which 77% of the enterprises decreased year by year.

As of the end of March, yarn inventory increased by 1.74%, and cloth inventory increased by 2.96%. Since late March, production has begun to show signs of slowing down. In order to maintain operation, enterprises have to increase the production of regular products, and the pressure of inventory has intensified.

Early improvement of cluster production slowed down later

According to the tracking survey of the cluster situation, with the stability of the epidemic in the first ten days of 3, the operating rate, equipment utilization rate and personnel arrival rate of each cluster gradually increased. Beginning in late March, enterprises' production slowed down significantly under the influence of foreign trade.

As of April 19th, the average operating rate of the tracking cluster was around 57%, of which 78% of the enterprises were operating on a regular basis, and the utilization rate of spinning and weaving equipment was below 40%.

According to the accumulative economic operation data of 1~3 months in 2020, by comparing and analyzing the data of the same period last year, the index of output and output value of tracking cluster in March has been greatly reduced. In terms of output, the output of all kinds of yarns in the cluster enterprises decreased by 33.6% compared with the same period last year, and the output of the enterprises decreased by 37.2% compared with the same period last year. In terms of economic indicators, the business income of the cluster enterprises decreased by 24.5% compared with the same period last year, and the total profit decreased by 53.4% compared with the same period last year.

In March, cluster production showed a general trend of recovery, and most enterprises mainly made orders before the festival. Affected by the epidemic, new orders are less, staff attendance rate is still insufficient, and the start-up rate of enterprises is relatively low, resulting in a year-on-year decline in output value.