Market Analysis: Prosperity Report Of China'S Cotton Textile Industry In July 2021

In July, the national economy continued to recover steadily, industrial production increased steadily, business income grew rapidly, sales continued to increase, and the structure of import and export trade continued to improve. In July, although it was in the off-season of traditional textile industry, the production and operation of enterprises in some areas were affected by rainstorm, epidemic situation and other factors, but on the whole, China's cotton textile industry continued to maintain a stable and positive situation, industry production increased, sales increased, business operation continued to improve, and the market confidence was relatively sufficient.

In July, China's cotton textile boom index was 51.82, up 1.89 from June, which was above the Kuo Rongxian line, with an overall expansion trend. From the sub index point of view, except that the raw material inventory index is lower than the Kuo Rong line, the other indexes are higher than 50, of which the raw material purchasing index and product sales index rebounded quickly.

　　 Raw material purchasing index

In July, the raw material purchasing index was 53.25, up 1.39 from June. In terms of price, cotton prices rose sharply in the month, while domestic cotton prices rose more than international cotton prices. The monthly average value of cotook a index was 97.70 cents / pound, up 3.2 cents / pound or 3.39% month on month; The monthly average price of 3128 grade cotton was 17187 yuan / ton, up 932 yuan / ton, up 5.73%. The average price increase of chemical fiber staple fiber was slightly lower than that of cotton price. The monthly average price of mainstream viscose fiber was 12842 yuan / ton, up 75 yuan / ton or 0.59% month on month; The average monthly price of 1.4d direct spinning polyester staple fiber was 7145 yuan / ton, up 298 yuan / ton, or 4.35%. From the perspective of cotton textile enterprise procurement, cotton procurement index 48.77, non cotton fiber procurement index 52.14, non cotton fiber procurement situation is better than cotton. Overall, the rise of raw material purchasing index is mainly driven by the price of raw materials.

　　 Stock index of raw materials

In July, the raw material inventory index was 49.03, which was in a state of recession. There are two main reasons: first, the purchase of raw materials decreased; Second, the production of enterprises increased and the consumption of raw materials accelerated. Specifically, cotton inventory index 48.91, non cotton fiber inventory index 49.15, we can see that non cotton fiber inventory is slightly better than cotton. According to the survey data of China Cotton Textile Industry Association (hereinafter referred to as "China Cotton Industry Association"), in July, the proportion of enterprises with cotton inventory decreasing month on month was 42.90%, which was 10.88 percentage points higher than that of rising enterprises; The proportion of enterprises whose non cotton fiber inventory decreased month on month was 38.73%, which was 8.51 percentage points higher than that of rising enterprises.

　　 Production index

In July, the production index was 51.42, up 2.27 from June. According to the survey, the cotton textile enterprises started well in the month, and the startup rate and output were increased. Among them, yarn output index is 51.66, cloth output index is 52.25, and opening rate index is 50.93. According to the survey data, the proportion of enterprises with yarn output increasing month on month was 44.94%, which was 16.58 percentage points higher than that of declining enterprises, the proportion of enterprises with cloth output increasing was 49.60%, 22.53 percentage points higher than that of declining enterprises, and the proportion of enterprises with increasing start-up rate was 17.45%, which was 9.32 percentage points higher than that of enterprises falling down.

　　 Product sales index

In July, the product sales index was 53.57, up 2.95 from June. From the price point of view, the cotton yarn price rose sharply in the month driven by the rise of raw material price, and the grey cloth price slightly lagged behind, and the increase was lower than the cotton price. Specifically, the average monthly price of 32 pure cotton combed yarn was 25960 yuan / ton, up 710 yuan / ton or 2.81% month on month. The monthly average price of pure cotton grey fabric (32 * 32130 * 702 / 147 "twill) was 6.04 yuan / ton, up 0.06 yuan / m or 1% month on month. In terms of sales, gauze sales were better than June. According to the survey data, the proportion of yarn sales increased by 49.48%, which was 19.33 percentage points higher than that of declining enterprises. The proportion of enterprises in cloth sales volume was 53.04%, which was 22.84 percentage points higher than that of declining enterprises. The rise of product sales index is driven by both price and sales volume.

　　 Product inventory index

In July, the product inventory index was 51.73, up 1.96 from June. Among them, yarn stock index is 52.17, cloth stock index is 51.06. According to the investigation, the cotton yarn shipment in the month is better than that of the grey fabric, the inventory of the spinning factory is mostly controlled within 1 month, and the warehouse of the weaving factory is within 45 days. According to the survey data, the proportion of enterprises with declining yarn stock on a month on month basis was 49.04%, 21.72 percentage points higher than that of rising enterprises, 42.19% of which was lower than that of rising enterprises, 10.63 percentage points higher than that of rising enterprises.

　　 Business operation index

In July, the enterprise operation index was 51.8, up 2.46 from the index in June. Among them, the main business income index is 53.02, and the total profit index is 50.59. In July, driven by the rising prices of upstream raw materials, the spinning market was better. Due to the poor transmission of price to the downstream of the industrial chain, the operation of the weaving mill is slightly worse than that of the spinning mill, especially the profit is squeezed by the downstream. According to the survey data, 55.58% of the main business income increased, 30.18% higher than that of the declining enterprises; The proportion of enterprises with a month on month increase in total profit was 5.92%, which was 5.92 percentage points higher than that of declining enterprises.

　　 Enterprise confidence index

In July, the enterprise confidence index was 52.39, up 0.19 from the June index. At present, the global epidemic situation is still evolving, and the external environment is still complex and severe. Enterprises said that affected by the epidemic situation, European and American "double festival" orders were issued ahead of time. The epidemic situation in Southeast Asia was grim, and some foreign trade orders returned to China. On the domestic side, the price of cotton rose sharply, and the turnover of reserve cotton was hot, and the off-season was not weak, which was obviously better than that in previous years. As the traditional textile peak season is about to enter, downstream enterprises have begun to prepare goods for the "golden nine silver ten" one after another, and a new round of orders will be opened soon. Enterprises are full of confidence in the later stage. According to the survey data, 38.95% of the enterprises think that the future market is optimistic and positive, and 15.09% think that the future market is weak.

Note: the prosperity index of China's cotton textile industry is collected from nearly 500 secondary cotton textile enterprises in China. Referring to the establishment methods of national manufacturing PMI and other indexes, it is concluded that when the index is higher than 50, it means that the prosperity degree of cotton textile industry in this month is better than that of last month; if it is lower than 50, it means that the prosperity degree of this month is lower than that of last month.

(source: China Cotton Textile Industry Association)