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Blank Market: Deepening Of Weakness And Continuous Accumulation Of Inventory

2020/7/11 14:18:00 0

In the past month, the domestic cotton price has risen steadily, but the cotton yarn price has continued to fall, the market demand for grey cloth is weakening, and the overall price is in a weak position. Some weaving enterprises have begun to reduce production, and the utilization rate of production capacity has declined.

1. Raw material Market

Since June, the domestic cotton futures spot price has fluctuated under the influence of ICE Futures slump, the second rebound of the epidemic situation in the United States and Beijing, China, the rotation of reserve cotton and the central bank's reduction of the re loan rediscount rate and other factors, and the overall situation is still stable and rising. While the downstream market is further weakening, and the reserve cotton is about to rotate out, the willingness of textile enterprises to purchase cotton spot is significantly lower than that in May. On July 1, the round of reserved cotton was opened, and the relatively high cost performance ratio became the first choice for textile enterprises. The average transaction price in the first week of the round was 11303 yuan / ton, and the transaction was hot. In the current situation, textile and clothing consumption at home and abroad has a tendency of degradation, and reserve cotton rotation is expected to reduce the cost of cotton used by textile enterprises.

Pure cotton yarn market continued to weaken, the off-season atmosphere appeared, the recovery of export orders was less than expected, domestic orders entered the finishing stage, and prices continued to decline. In the case of high-200 tons of pure cotton yarn, the sales of pure cotton yarn will slow down, and the sales of pure cotton yarn will slow down, and there will be a slight increase in the sales of pure cotton yarn in small enterprises due to the low price of combed yarn / 100 tons. On the whole, the production and sales of textile enterprises are difficult to balance. All the surveyed enterprises said that the yarn inventory increased compared with that of the previous month, and more than 80% of the enterprises had inventory for more than one month, and the starting rate remained at about 75%.

2. Grey fabric Market

Since June, the market of grey cloth has been weakened obviously, the sales speed is slow, and the inventory of weaving enterprises has increased obviously. Some enterprises have no storage space in their warehouses, and some of them have sold goods at reduced prices. In the case of overstocked inventory and insufficient follow-up orders, some weaving enterprises began to reduce production, and the average utilization rate of production capacity was about half. In terms of varieties, low count pure cotton grey cloth is sporadic, while the sales of conventional grey fabric is relatively smooth, and the price is stable and weak; the overall demand of high count and high density varieties is still weak, and the follow-up orders are insufficient, and the price remains stable.

Compared with the same period of last month, the cumulative orders of domestic and export textile enterprises kept increasing. At present, the inventory of grey cloth of the survey enterprises is more than one month on average, and all the surveyed enterprises indicate that the inventory in the later period is still on the rise.

In terms of profits, since June, the price of pure cotton yarn has been in a slump. Textile enterprises mainly buy as you use them. Grey cloth orders are highly competitive. Most of the actual transactions are reduced. The profit space is squeezed. The whole enterprise is near the profit and loss line. All the surveyed enterprises say that it is difficult to make capital turnover.

3. Future prospects

In July, the market entered the traditional off-season of the industry, and the domestic market was weak. After the resumption of work in the European and American markets, the epidemic situation rebounded. There were still variables in the export market and the overall consumer market remained depressed. In the situation of insufficient orders and continuous accumulation of inventory, some enterprises intend to take high-temperature leave, and the startup rate is expected to further decline. We hope that the state and relevant departments can continue to pay attention to the financial problems of textile enterprises, increase the support of special policies, and ensure the healthy development of the industry.

(the above content is from the sample survey of grey fabric enterprises, for reference only.)