October 2018 China Cotton Textile Industry Boom Report

October 2018

Affected by the National Day holiday, the output of enterprises decreased in October than in September, but the key factor is the lack of downstream market demand.

Enterprises generally reflect that the peak season is not prosperous, orders are further reduced, sales are slow, and the price of raw materials continues to decline.

In November, the downstream market remained unchanged. The trend of Sino US trade friction is the focus of business.

Association research and understanding, about 47% of the enterprises said next month, the domestic market will decline, 43% of the enterprises indicated that the export market has declined, about 21% of the enterprises believe that Sino US trade friction will continue to upgrade, 19% of the enterprises think it will weaken, 32% of the enterprises think it is more stable, 28% of the enterprises say it is difficult to judge.

China's cotton textile prosperity index is expected in November.

In October, the raw material purchasing price index was 49.96, which decreased by 0.87 compared with September, which is in line with expectations.

In October, international cotton prices continued to decline, affected by falling crude oil prices and new cotton listing, Zheng cotton futures continued to decline, domestic cotton spot prices fell, chemical fiber short fiber,

Prices were also subject to rapid downward adjustment of raw materials. Viscose staple fibers continued to maintain a high price, but the price remained unchanged.

In October, the CotlookA index averaged 86.80 cents / pound, a decrease of 3.56 cents / pound, the average spot price of domestic 3128B grade cotton was 15529 yuan / ton, a decrease of 701 yuan / ton, the average price of mainstream viscose fiber was 15213 yuan / ton, the chain ratio increased 41 yuan / ton, and the 1.4D straight spinning polyester short average price was 10455 yuan / ton, and the ratio decreased by 682 yuan / ton.

Entering the November, the supply of new cotton has entered the peak period, and cotton prices are difficult to get rid of the disadvantage in the short term.

There is little room for price rise, and the price index of raw materials purchasing is expected to decline in November.

Raw material inventory index

In October, the stock index of raw materials was 46.96, which was 0.55 lower than that in September, which is in line with expectations.

Tracking enterprise data shows that in October, raw material inventories fell by 5.63%.

Among them, the raw cotton inventory decreased by 7.43%, the import cotton inventory decreased by 5.01%, and the non cotton fiber inventory increased by 0.12%.

The main reasons are as follows: first, new cotton is not listed in large quantities, and the cotton can not be purchased during the period of no longer green. Two, domestic and foreign cotton prices continue to fall, the cotton price difference is narrowed, and the purchase of imported cotton is not strong. Three, the price of chemical fiber staple is reduced, and after the National Day holiday, enterprises concentrate on replenishment and inventory increases slightly.

In November, a large number of new cotton were listed, and the market supply of cotton was relatively adequate. However, there was no obvious improvement in downstream market demand, and the willingness of textile enterprises to replenishment was not strong. It is estimated that the raw material inventory index will continue to decline slightly in November.

The production index in October was 47.35, down 1.5 from September, which is in line with expectations.

In October, the production of cotton textile industry continued to decline due to eleven holidays and low demand.

Sino US trade friction has spread to the entire industrial chain, enterprises reflect that the market demand is relatively low, orders are few, some enterprises even have no order status, production has slowed down obviously.

Tracking enterprise data shows that yarn production decreased by 0.17% in October, and cloth production decreased by 0.28%.

According to China Cotton Association Research and understanding, in November, downstream demand is still empty, orders level continues to decline, enterprise equipment opening rate has declined, November production index decline probability.

In October, the product sales index was 48.94, an increase of 1.67 compared with September.

In the first ten days of October, after the holidays, centralized replenishment was carried out in the lower reaches. According to the varieties, the yarn was slightly better than the knitting yarn, and the sales of polyester yarn were higher than that in September.

Still, some companies increase sales through price cuts.

In terms of price, the average price of 32 pure cotton combed yarns is 24066 yuan / ton, a decrease of 241 yuan / ton, and the average price of pure cotton grey fabric (32*32130*702/147 "twill") is 5.71 yuan / meter, and the ratio of ring down is 0.06 yuan / meter.

Tracking enterprise data shows that yarn sales increased by 3.43% in October, and sales increased by 3.18%.

At present, the power of market warming is insufficient, and the Sino US trade frictions continue to escalate. The product sales index is expected to decline in November.

In October, the product inventory index was 45.47, down 0.86 compared with September, which is in line with expectations.

In October, the production and marketing of cotton spinning industry slowed down, which further increased the inventory of enterprise products.

According to the understanding of the association, a well run enterprise product inventory is in half a month to a month or so, and the inventory risk is large, and the product inventory is more than a month.

With the help of lower price sales, the inventory declined from September.

Tracking enterprise data shows that yarn inventory increased by 2.68% in October, and cloth inventory ring decreased by 1.68%.

At present, the market price is weak, upstream raw material prices continue to decline, downstream enterprises to see the atmosphere is strong, purchasing intention will decline, the product inventory index is expected to decline in November.

In October, the business index was 47.11, a decrease of 1.14 compared with September, which is in line with expectations.

In the first half of the month, raw material inventories of enterprises were relatively reasonable, and the short-term profit rebounded with the decrease of raw material prices. However, in the second half of the month, the price of raw materials drove down the prices of products, and the prices of raw materials in the early stage were obviously higher than before, which led to obvious losses in enterprises.

In October, the average number of all employees continued to decline.

According to the survey, enterprises are most concerned about the price of raw materials, the dynamics of Sino US trade friction and the matching of finished products inventory and sales. However, most enterprises are weak and strong in the future market outlook, and the business index is expected to decline in November.

Explanation: China

The prosperity index was collected from nearly 200 cotton textile enterprises in China. By weighting multiple key indicators, the index was higher than 50, indicating that the cotton textile industry's prosperity was better than that of 50.