China Cotton Textile Industry Association: Monthly Analysis Report Of Cotton Textile Industry Released In May

Recently, the China Cotton Textile Industry Association (hereinafter referred to as the China Cotton Industry Association) released a monthly analysis report on China's cotton textile industry, which analyzed the current situation of China's cotton textile enterprises, cluster production and operation and enterprise revenue in May in terms of production operation and economic indicators.

Purchasing and sales are still weak and equipment utilization is declining

Production and operation

According to the tracking data of the China Cotton Association, in May 2022, the market demand is weak, the domestic cotton futures prices rise and fall, the cotton yarn and cotton cloth prices continue to fall, and the equipment utilization rate decreases.

Enterprise

Compared with April, raw material purchase of cotton textile enterprises increased in May, and raw material consumption and inventory decreased; Yarn production decreased, sales and inventory increased; Cloth production and sales increased, inventory decreased.

I. purchase and inventory of raw materials

(I) raw material procurement

Among them, the purchasing volume of raw materials decreased by 10.5% compared with that of the Central Plains cotton purchasing enterprises, with a decrease of 57.00% compared with the month before; Non cotton fiber procurement increased by 8.63% month on month. In May, ice cotton futures and Zhengzhou cotton fell together, domestic cotton spot price weakened, non cotton fiber continued to rise driven by rising commodity prices, cotton blended and chemical fiber yarn sales were better than pure cotton yarn, cotton textile enterprises reduced cotton procurement, increased the purchase of non cotton fiber.

From the perspective of raw material prices, both domestic and foreign cotton prices fell in May, and the difference between domestic and foreign cotton prices was still significantly inverted, and enterprises' purchase of imported cotton decreased significantly. On May 31, the main contract of Zheng cotton futures was 20655 yuan / ton, down 1115 yuan / ton month on month; Domestic standard cotton spot price was 20960 yuan / ton, down 1220 yuan / ton month on month; The cotook a index was 157.45 cents / pound, down 8.6 cents / pound on a month on month basis, accounting for 1% tariff price of 25653 yuan / ton and 1217 yuan / ton on a month on month basis. The price difference between domestic and foreign cotton prices was inverted by 4693 yuan / ton. Viscose staple fiber and polyester staple fiber maintained an upward trend. On May 31, the prices were 15020 yuan / ton and 8500 yuan / ton, respectively, up 720 yuan / ton and 650 yuan / ton on a month on month basis.

(2) raw material consumption and inventory

The tracking data shows that the consumption of raw cotton decreased by 2.28% month on month, of which raw cotton consumption decreased by 4.10% and non cotton fiber consumption increased by 0.44% month on month. As of the end of May, the raw material inventory decreased by 0.88% month on month, and the cumulative decrease from January to May was 21.93% year-on-year. Among them, raw cotton inventory decreased by 2.01% month on month, and the cumulative year-on-year decrease from January to May was 24.26%; Non cotton fiber inventory increased by 2.32% month on month, and decreased by 14.82% from January to May. Cotton textile enterprises gradually adjust the product structure and increase the use of non cotton fiber.

2、 Product production

The tracking data showed that the output of yarn decreased by 0.67% on a month on month basis, of which pure cotton yarn decreased by 2.76%, cotton blended yarn and purified fiber yarn increased by 1.06% and 1.98% respectively, with a cumulative year-on-year decrease of 1.99% from January to May; Cloth output increased by 1.64% month on month, including cotton cloth, cotton blended fabric and purified fiber cloth increased by 1.62%, 1.32% and 5.00% respectively, with a cumulative year-on-year growth of 1.90% from January to May.

By the end of May, the utilization rate of spinning equipment of tracking enterprises was 91.78%, with a decrease of 1.57 percentage points on a month on month basis, and a decrease of 3.62 percentage points on a year-on-year basis; The utilization rate of weaving equipment was 91.45%, down 0.40% month on month and 1.31% on year. Among them, 79% of the enterprises whose utilization rate of spinning equipment is higher than 85%, which is basically flat on a month on month basis; Weaving equipment utilization rate is higher than 85% of the enterprises accounted for 74%, increased by 2 percentage points month on month. Although the downstream consumption in May was better than that in April, the overall situation was still poor. In order to control product inventory, enterprises reduced the utilization rate of equipment.

3. Inventory and sales

The tracking data shows that in May, the sales of yarn and cloth increased by 5.20% and 11.98% respectively, yarn inventory increased by 1.24% month on month, and cloth inventory decreased by 2.09% month on month.

In the first ten days of May, the market purchase and sales improved, the foreign trade orders of enterprises increased slightly, the delivery speed of grey cloth accelerated, and the inventory decreased. In the middle and late ten days of the market, the stock of yarn and cloth is still on the rise. Overall, the sales of pure cotton products are not good, and the sales of blended and chemical fiber products are good. On May 31, the price of 32 cotton combed yarn was 28190 yuan / ton, down 30 yuan / ton month on month; The price of 30 pure viscose yarn was 18480 yuan / ton, up 260 yuan / ton month on month; The price of 32 pure polyester yarns was 12700 yuan / ton, up 150 yuan / ton month on month; The twill price of 32 * 32 130 * 70 2 / 1 47 "grey cotton fabric was 6.00 yuan / m, down 0.06 yuan / m on a month on month basis.

Cluster

According to the follow-up survey of the cluster situation, the cluster production and operation in May was basically consistent with the industry, and the utilization rate of equipment decreased.

1、 Equipment utilization

Tracking data shows that in May, the number of start-up enterprises in the cluster decreased by 4.7% year-on-year, the number of employees decreased by 19.0% year-on-year, among which the number of employees of Enterprises above the designated size decreased by 19.7%.

The average equipment utilization rate of cluster enterprises is about 68%, which is 12% lower than that of the same period of last year, among which, 73% of Enterprises above the designated size.

Production capacity and output of yarn and cloth

Tracking cluster spinning capacity increased by 1.5% and weaving capacity by 3.9% year on year.

In terms of output, the total yarn output of cluster enterprises decreased by 6.2% from January to may, among which enterprises above the designated size decreased by 9.9% on a year-on-year basis; Cloth output decreased by 2.7% year-on-year, and enterprises above the designated size decreased by 5.1% year-on-year.

3、 Post production plan

With the advent of the traditional off-season in the industry, it is expected that the market demand will be difficult to improve in the short term, the orders will be insufficient, and the product inventory pressure will continue to increase. In addition, in the situation of cotton price fluctuations and poor sales of pure cotton products, enterprises will continue to increase the use of non cotton fiber and produce differentiated products.

The proportion of exports increased and profits continued to decline

Economic indicators

According to the data of key enterprises tracked by China Cotton Association, in May 2022, the market purchase and sales were still light. Compared with April, the growth rate of operating income continued to decline, the proportion of export delivery value increased, profits decreased and loss making enterprises increased.

1. The proportion of operating costs decreased

The tracking data shows that from January to May of 2022, the cumulative business income of cotton textile enterprises increased by 6.3% year-on-year, and the growth rate decreased by 2.9 percentage points compared with January April.

From January to may, the total operating cost of cotton textile enterprises increased by 8.1% year-on-year, and the growth rate decreased by 0.2 percentage points compared with January April; Operating costs accounted for 91.2% of operating revenue, down 0.6% from January to April.

From January to may, the accumulated operating revenue and operating cost of cluster enterprises decreased by 2.7% and 4.5% respectively year-on-year, and the decline rates were 0.7% lower than those in January April.

2. The proportion of export delivery value increased

The tracking data shows that the cumulative export delivery value of cotton textile enterprises increased by 9.2% from January to may, 0.1 percentage point higher than that from January to April; Export delivery value accounted for 11.8% of industrial sales value, an increase of 1.1 percentage points compared with January April.

From January to may, the export delivery value of cluster enterprises changed from negative to positive, with a cumulative year-on-year increase of 11.1%; Export delivery value accounted for 6.6% of industrial sales value, an increase of 0.7% compared with January April.

Third, the profit decreases and the loss making enterprises increase

The tracking data shows that the industrial added value of cotton textile enterprises changed from positive to negative from January to may, with a year-on-year decrease of 2.26%; The industrial added value rate was 13.7%, down 0.2 percentage points from January to April.

From January to may, the total profit of cotton textile enterprises decreased by 14.9% year-on-year, 5.3 percentage points larger than that of January April; The profit margin was 3.5%, with a year-on-year decrease of 0.9 percentage points, an increase of 0.1 percentage points compared with January April.

From January to may, the number of loss making enterprises in cotton textile industry increased by 71.4% year on year, 8.5 percentage points higher than that in January April; The loss was 29.0%, 0.1 percentage point higher than that of January April and 12.1 percentage point higher than that of January April.

From January to may, the industrial added value of cluster enterprises increased by 8.3% year-on-year, 7.1 percentage points higher than that of January April; The total profit decreased by 29.3% year-on-year, 3.0% lower than that in January April.

On the whole, thanks to the implementation of a package of national policies to stabilize the economy and foreign trade in April, China's foreign trade situation improved significantly in May, but the global economic growth further slowed down, the domestic demand market consumption expectation was insufficient, and the recovery was slow, and the pressure of boosting was great. The most urgent task for textile enterprises is to protect their stock. 　　

The data in this report are all from China Cotton Textile Industry Association, involving more than 260 cotton textile enterprises and about 15 industrial clusters in China. The total spinning capacity accounts for about 75% of the national cotton textile industry, which is representative of the industry.