In The Peak Season, The Market Is Light, And The Market Is Expected To Exert Momentum.

Since April 2020, domestic cotton futures and spot prices have rebounded slightly, buying and selling is still light; the cotton yarn market is weak, prices are still in a downward path, the decline has slowed down from last month; the grey market is cold, orders are not enough, prices are down, enterprise inventories are accumulating, and the utilization rate of energy is declining overall.

01 raw material Market

In April 8th, Wuhan officially "unsealed", and there were signs of easing of foreign epidemic. Domestic cotton futures and spot prices rebounded slightly under the support of market panic, and the overall operation was relatively stable. In May 8th, the domestic 3128B grade cotton spot price was quoted at 11950 yuan / ton, up 270 yuan / ton from the same period last month, and textile enterprises were still buying small quantities, followed by buying and buying, and a small number of transactions were made. Cotton yarn market continued to be weak, domestic orders were relatively stable, the price of conventional varieties fell by 500 yuan / ton compared with the same period last month, sales were still high, high yarn prices dropped at 500-1000 yuan / ton, and the price of spinning yarn decreased significantly, with a decrease of 1000-1500 yuan / ton. Overall, the decline was narrowed compared with the same period last month. Textile enterprise product inventory is still in continuous accumulation, 80% of the survey enterprises choose to reduce production capacity utilization rate of about 60%, yarn stock for more than 1 months.

02 grey fabric Market

Since April, the grey cloth market has been slack and sold, and the traditional peak season has been extremely deserted under the impact of the epidemic. The overall turnover is weak. The problem of insufficient orders has been highlighted. Enterprises continue to reduce sales promotion, but the effect is not ideal. The inventory pressure has been rising. The production enterprises have increased over the same period last month. About 85% of the survey enterprises choose the "May 1" holiday, and the capacity utilization rate is only about 50%.

In terms of inventory, due to the lack of enterprise orders, in order to maintain production, the output of conventional varieties generally increased. Under the condition of poor sales, the inventory of products increased significantly. 70% of the survey enterprises had 1 months or so, and the inventory of outward oriented enterprises generally reached about 2 months, and the latter period still had an upward trend.

In terms of profit, the price of cotton yarn is down, and the cost of raw materials has dropped. But the price of grey cloth has been reduced. More than 90% of the survey enterprises indicated that export orders had not improved, domestic orders were very popular, and a lot of gray cloth was stored in the warehouse, and the capital turnover of enterprises became more and more difficult. At present, they could only maintain capital preservation or even slight losses, but they were slightly better than in March.

03 outlook

Recently, foreign epidemic situation has eased, and European and American countries have been released soon, export orders or slight improvement. Domestic epidemic prevention and control has been further consolidated and consumer confidence has been boosted. With the increase of travel, people's life has gradually returned to normal. Textile and clothing consumption demand is expected to rise, but in May, it will enter the traditional low season of the market. The overall situation is still not optimistic. Gold is the basis for the survival and development of enterprises. It directly determines whether enterprises can continue to maintain production in the later stage. We hope that the state and related departments can continue to pay attention to the funding problems of textile enterprises, and increase the support of specific policies to ensure the healthy development of the industry.

The above contents are from the sample survey of grey cloth enterprises, for reference only.