China Cotton Association: In April, Weaving Cluster Was Insufficient, And Production Continued To Slow Down.

According to the survey of the production of weaving enterprises in the cotton textile cluster, in April, the production of enterprises continued to slow down. It is understood that in April, epidemics continued to spread outside the country, gradually becoming normalized, and had a major impact on the domestic weaving Market, and production continued to slow down. As of April 26th, the average operating rate of cluster weaving enterprises was around 53%, and the average operating rate of enterprises was around 74%, and the utilization rate of weaving capacity was around 26%.

In terms of orders, since the outbreak of overseas epidemic, the export orders of cluster weaving enterprises have been greatly reduced. At present, they have basically stagnated. Due to the epidemic situation, domestic demand has decreased significantly compared with the same period last year, and domestic orders have also declined significantly, the year-on-year fall is basically over 40%. At present, new orders are few and mostly short term orders. On the opening stage, the utilization rate of weaving equipment continued to decline in April. Regulated enterprises take more measures to limit production and reduce production, and regulate the phenomenon of suspension of production and holiday. Most cluster weaving enterprises say that if there are no new orders in the near future, the production and production will be further cut down, and the number of days off may day will be extended. Some export enterprises indicated that the pressure of export to domestic sales was greater. Individual weaving enterprises, such as respirators and melted spray cloth. In terms of funds, due to the lack of orders, some cluster weaving enterprises took inventory sales and occupied a lot of capital, resulting in further aggravation of inventory pressure and capital pressure. Some enterprises in order to stabilize the workforce, the implementation of staff rotation system, labor cost pressure is greater. In response to the measures, it is understood that support policies vary from place to place, and some of the governments with greater support have reduced the management cost and financial cost to some extent by reducing tax revenue, subsidized social security and raising loans. Some clusters will further standardize the management, upgrade the industrial structure and take the road of sustainable development.