Rising Costs, Obstructed Transportation How is the cotton textile industry cluster market operating?

Date: 2022-04-25 Viewers:

Recently, the China Cotton Textile Industry Association conducted an investigation and understanding of the market operation of the cotton textile industry cluster. At present, the global epidemic situation is severe, the pressure of prevention and control continues to increase, geopolitical tensions intensify, and the downward pressure on the economy remains unabated. The production and operation of cotton textile industry cluster enterprises face multiple risks and challenges. In many places, there are signs of temporary stagnation in market sales due to transportation obstructions. Looking forward to the improvement of the epidemic situation and ease the operating pressure.

According to the pure cotton yarn cluster enterprises, the current operating rate is less than 70%, the orders are difficult to meet the production needs of the enterprises, and the yarn product inventory is mostly about a month. The market conditions were not good, downstream customers were not very willing to purchase, and the export market situation continued to be sluggish. Most pure cotton yarn products are in a state of loss, especially for medium and low count yarns.

According to the viscose yarn cluster enterprises, the current price of viscose staple fiber is relatively strong, and the downstream demand is weak, which makes it difficult to support the price of viscose yarn. The product sales are not smooth, some products are slightly better than pure cotton yarn, and the inventory is more than 20 days. Affected by the epidemic, some clusters temporarily implemented static management, and enterprises stopped work and production in stages.

According to the reflection of the color spinning cluster enterprises, some machines are currently under construction, and there are few new orders. The flow of people and logistics is limited, and the transportation of raw materials into the factory and the delivery of products out of the factory are relatively difficult. Purchasing costs increased and operations were at a loss. All kinds of costs are rising, difficult to digest, and funds are tight. It is expected that the difficulty of operation will be further increased in the later period.

Fujian non-cotton yarn: Recently, enterprises are still under great pressure due to the impact of the epidemic, which is mainly reflected in transportation, personnel management, and epidemic prevention and control. The price of viscose staple fiber has risen, but the price of yarn has not kept pace with the changes. In addition, there are uncertainties in the date of delivery, so companies are more cautious in taking orders. It is expected that the current situation will continue for a period of time, and we look forward to the early improvement of the epidemic situation to relieve the current pressure on many parties.

Xinjiang pure cotton yarn: The production is stable and 100% of the opening is maintained, but at present, there are fewer orders from downstream customers, the production and sales rate has declined, and the inventory has increased slightly, which is a normal inventory state. Due to the domestic epidemic, automobile transportation has been greatly affected. In addition, the follow-up market trend is uncertain, many customers are rigid procurement, and the company has a certain operating pressure, but the overall situation is controllable.

Guangdong cotton yarn: Recently, the domestic epidemic has spread in many places, and yarn production and transportation have been significantly affected. The market continues to be in a downturn in which both demand and supply were blocked in the early stage. The epidemic control has been strengthened and market uncertainties have increased. It is expected that the market will remain weak in the next two weeks.

According to the reports of white grey cloth cluster enterprises, about 80% of the construction is currently underway. Sales are generally poor, in contrast, blended varieties are better than pure cotton varieties, and high-count and high-density varieties are better than conventional products. Affected by the epidemic, logistics has been hindered, raw material inventory has been tightened, and product inventory has been high. It is expected that customers will continue to wait and see in the short term, waiting for price reduction to place orders.

According to the reflection of yarn-dyed fabric cluster enterprises, the operating rate has dropped significantly compared with the same period of the previous year, and the original peak sales season encountered a "cold spring". Market purchases and sales were generally weak, and product prices were weak to maintain stability. Some cluster enterprises have been suspended for several days and are expected to resume normal production this week. It is expected that orders for most varieties will continue to wait and see.

According to the reflection of denim cluster enterprises, the current operating rate is less than 90%. The price of cotton has been slowed down, the price of cotton yarn has fallen along with the loosening, and the price of indigo dye has been basically stable. The downstream market is still relatively light, and new orders are sporadic. Affected by the epidemic, the supply and sales of the industrial chain have been blocked, and it is expected that the status quo may continue in the near future.
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