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What Is The Living Condition Of Hubei Textile Industry After The Epidemic?

2020/8/12 17:02:00 0

Hubei Textile Industry

In the near future, some enterprises in Hubei are still faced with an optimistic situation of production and marketing. However, some enterprises in Hubei are still faced with great pressure from production and marketing. As the epicenter of the epidemic, the social production and living order in Hubei Province has been completely restored to normal, and the confirmed cases in the province have been cleared.

Hubei is a major cotton textile industry province in China. According to the application information data of textile enterprises with sliding standard tax quota issued by the economic and Trade Department of the national development and Reform Commission, Hubei Province's textile scale in 2018 was close to 6 million spindles, the annual consumption of cotton exceeded 610000 tons, and the annual output of pure cotton yarn was close to 520000 tons, ranking the fifth in the country. With such a large volume, how much impact will it have in the face of the impact of the epidemic?

The pressure of textile enterprises in Hubei Province is greater than that in other areas, mainly due to the long duration of the epidemic and the deep impact.

Since the outbreak of the epidemic, China's cotton textile industry has suffered a steep decline, especially in foreign trade. The textile and clothing export data in the first half of the year is the best proof. From January to June 2020, China's textile and clothing cumulative export volume is 125.188 billion US dollars, of which the clothing cumulative export value is 51.084 billion US dollars, a year-on-year decrease of 19.39%.

According to the introduction of the epidemic situation, the foreign trade enterprises in Hubei Province were not able to resume their production until April. However, a large number of foreign trade enterprises in Hubei Province were faced with severe pressure to resume production. The enterprises interviewed also said that Hubei cotton yarn had been rejected in other parts of the country when the epidemic was at its worst.

From the inventory of raw materials and products, the cotton inventory of the interviewed enterprises was maintained at about 1.5 months on average, maintaining a normal level. The cotton yarn inventory showed signs of accumulation, which was at a high level compared with previous years. The main reason was that there were few downstream orders and high sales pressure.

When the internal and external markets are changing, Hubei enterprises actively adjust their production lines and strive to open up the domestic consumption market.

However, the state-owned enterprises in Hubei Province are not responsible for the development of high-end cotton yarn. The state-owned enterprises are mainly responsible for the development of high-end cotton yarn in the world Due to the restriction of foreign trade and export, the high-end yarn market has declined sharply, so it can only develop the domestic medium and low-end market. Each production equipment with a value of 10 million yuan produces combed 40 and other middle end yarns, which is really overkill.

Although this phenomenon is rare in Hubei Province, the domestic medium and low-end market really needs enterprises to survive. According to the introduction of enterprises, foreign trade orders are mainly high-end yarn, and domestic market is mainly low-end yarn. Affected by the epidemic situation in foreign countries, enterprise orders are mainly for the domestic market. With the restoration of normal production order in China, the traditional enterprises which had been deeply ploughing into the domestic market have maintained stable orders and full production capacity due to their stable customer relationship. However, some enterprises engaged in foreign trade or production of medium and high-end products are under great pressure. As outsiders in the domestic market, it is not easy to squeeze into this circle.

Cotton price fluctuation is small, which provides relatively stable living space for enterprises.

Looking back on the trend of the first three months of this year's Zhengzhou cotton 2009 contract, the vibration range basically maintained at 11000-12500 yuan / ton, especially after the domestic epidemic situation was relatively stable, the amplitude was narrowed, which provided a good opportunity for the development of cotton textile industry. Upstream raw material market stability, virtually for downstream processing products to provide protection.

In this survey, the interviewed trading enterprises said that the chemical fiber price fluctuated greatly due to the crude oil fluctuation, while the pure cotton price was relatively stable. Although the cotton yarn price decreased slightly due to the influence of market supply and demand, the enterprise could control and digest it through the production process. In addition, the price difference between domestic and foreign cotton spinning enterprises is reduced to a certain extent. At present, the price of lint in China is about 12000 yuan / ton, while the price of Indian cotton transported to Hubei is 11800 yuan / ton. This price difference causes the loss of price advantage of imported cotton.

In view of the trend of cotton price in the later period, all the interviewed enterprises in Hubei believed that the current cotton price was in the situation of "bottom at the bottom and top at the top", but they had different views on the top space. Under the interaction of macro environment, epidemic situation and Sino US economic and trade relations, cotton price will still be difficult for a period of time. To our surprise, in this interview and research, although the situation of the cotton textile industry is grim, industry insiders are relatively optimistic about the price trend next year and are still full of confidence in the future development of the cotton textile industry.

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