Compared with March, the purchasing, consumption and inventory of raw materials of cotton textile enterprises decreased in April; Production and sales of yarn and cloth decreased, while inventory increased.

I. Purchase and inventory of raw materials

(a) the procurement of raw materials

In April, the purchase of raw materials by tracking enterprises decreased by 3.13% month-on-month, and the purchase of raw cotton in raw materials decreased by 3.17% month-on-month, among which the purchase of imported cotton decreased by 39.14% month-on-month. The purchase amount of non-cotton fiber decreased by 3.07% from the previous month. In April, ICE cotton futures were still in the rising channel, and Zheng Mian futures followed, but the downstream demand was sluggish, and the spot price of domestic cotton weakened. Cotton textile enterprises reduced their purchase of raw materials due to insufficient startup.

From the perspective of raw material prices, in April, foreign cotton prices continued to rise, domestic cotton prices fell, the price difference between domestic and foreign cotton prices deepened, and enterprises' enthusiasm for purchasing imported cotton was greatly reduced. On April 30th, the main contract of Zheng Mian futures was 21,770 yuan/ton, up by 15 yuan/ton from the previous month; The spot price of domestic standard cotton is 22,180 yuan/ton, down by 370 yuan/ton from the previous month; Cotlook A index is 166.05 cents/pound, up 9.5 cents/pound from the previous month, and the 1% tariff price is 26,870 yuan/ton, up 2,550 yuan/ton from the previous month. The price difference between domestic and foreign cotton is upside down by 4,710 yuan/ton. The price of viscose staple fiber rose, and it was 14,300 yuan/ton on April 30th, up by 1000 yuan/ton from the previous month. The price of spun polyester staple fiber was relatively stable, and it was 7,850 yuan/ton on April 30th, up by 80 yuan/ton from the previous month. (II) The tracking data of raw material consumption and inventory shows that the raw material consumption of cotton textile enterprises decreased by 1.39% month-on-month, among which the raw cotton consumption decreased by 1.77% month-on-month, and the non-cotton fiber consumption decreased by 0.79% month-on-month. As of the end of April, the raw material inventory decreased by 5.77% month on month, and the cumulative decrease from January to April was 25.12% year on year. Among them, the stock of raw cotton decreased by 4.94% from the previous month, with a cumulative decrease of 27.57% from January to April. Non-cotton fiber inventory decreased by 8.14% month-on-month, with a cumulative year-on-year decrease of 16.86% from January to April. The price of raw materials fluctuates at a high level, and textile enterprises are affected by factors such as tight funds and rising risk aversion, and raw materials are bought as they are used.

II. Production situation of products
The tracking data shows that the yarn output decreased by 3.56% from the previous month, and decreased by 0.33% from January to April. Cloth output decreased by 2.51% from the previous month, and increased by 4.44% from January to April.

By the end of April, the utilization rate of spinning equipment in tracking enterprises was 93.35%, down 1.06 percentage points from the previous month and down 2.10 percentage points from the previous year. The utilization rate of weaving equipment was 91.85%, down 0.88 percentage points from the previous month and down 1.17 percentage points from the previous year. Among them, the enterprises with the utilization rate of spinning equipment higher than 85% accounted for 79%, down 7 percentage points from the previous month; Enterprises with weaving equipment utilization rate higher than 85% accounted for 72%, down 9% from the previous month. With the impact of epidemic situation superimposed on the continuous downturn of downstream consumption, orders are scarce, and textile enterprises reduce production and stop production.
3. Tracking data of product sales and inventory shows that in April, the sales of yarn and cloth decreased by 4.64% and 8.41% from the previous month, while the inventory increased by 8.15% and 4.59% from the previous month. The market is deserted, the textile enterprises' inventory is accumulating, the epidemic blockade prevention and control has a certain impact on the production and delivery of enterprises, and the prices of yarn and cloth continue to deviate from the prices of raw materials, showing a downward trend. On April 30th, the price of 32 pure cotton carded yarns was 28,220 yuan/ton, down 565 yuan/ton from the previous month; The price of 30 pure viscose yarns is 18,220 yuan/ton, up by 360 yuan/ton from the previous month; The price of 32 pure polyester yarns is 12,550 yuan/ton, down by 400 yuan/ton from the previous month; The price of pure cotton grey cloth 32*32 130*70 2/1 47 "twill is 6.06 yuan/m, down 0.14 yuan/m from the previous month.

[Cluster]

According to the follow-up survey of the cluster situation, the production and operation of the cluster in April was basically the same as that of the industry, and the equipment utilization rate decreased.

I. Utilization of equipment

Tracking data shows that in April, the number of enterprises started in the cluster decreased by 3.6% year-on-year, and the number of employees decreased by 22.0% year-on-year, among which the number of employees in regulated enterprises decreased by 19.9% year-on-year. The utilization rate of cluster equipment is about 66% on average, down by 10% year-on-year, of which about 67% are regulated enterprises. II. Tracking of yarn and cloth production capacity and output. Spinning capacity of cluster increased by 6.6% year on year, and weaving capacity increased by 3.9% year on year. In terms of output, the output of all kinds of yarns in cluster enterprises decreased by 8.1% year-on-year from January to April, among which the cumulative decline of regulated enterprises was 10.3%; The cumulative output of cloth decreased by 0.6% year-on-year, and the cumulative year-on-year growth rate of regulated enterprises was consistent with that of cluster enterprises. Third, in the later production plan, the prices of raw materials are high, but the prices of yarn and cloth are falling instead of rising, and the pressure of production and operation of cotton textile enterprises has increased dramatically, resulting in sustained losses. At present, the epidemic still has a certain impact on the raw material procurement and product sales of enterprises, and enterprises control the inventory by reducing the startup. With the gradual unsealing of Shanghai, the market expects the downstream demand to recover as soon as possible, and the market will remain weak in the short term.
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.

[Summary of this month] According to the data of key enterprises tracked by China Cotton Textile Industry Association (hereinafter referred to as China Cotton Textile Association), in April 2022, the market purchase and sale was slow. Compared with March, the growth rate of operating income decreased, the proportion of operating costs increased, the proportion of export delivery value increased, profits decreased, and loss-making enterprises increased. I. Tracking data of the increase in the proportion of operating costs show that the cumulative operating income of cotton textile enterprises in January-April 2022 increased by 9.2% year-on-year, and the growth rate decreased by 2.9 percentage points compared with January-March.

From January to April, the cumulative operating cost of cotton textile enterprises increased by 8.31% year-on-year, and the growth rate decreased by 2.0 percentage points from January to March; Operating cost accounted for 91.8% of operating income, an increase of 0.7 percentage points from January to March. From January to April, the cumulative operating income and operating cost of cluster enterprises turned from positive to negative, with a decrease of 3.4% and 5.2% respectively. Second, the tracking data of the increase in the proportion of export delivery value shows that from January to April, the export delivery value of cotton textile enterprises increased by 9.1% year-on-year, down 2.5 percentage points from January to March; Export delivery value accounted for 10.7% of the industrial sales value, an increase of 0.1 percentage point over January-March.

From January to April, the cumulative export delivery value of cluster enterprises decreased by 6.8% year-on-year, which was 1.4 percentage points higher than that of January to March. Export delivery value accounted for 5.9% of the industrial sales value, an increase of 0.5 percentage points from January to March. III. Decline in profits and increase in loss-making enterprises Tracking data show that the industrial added value of cotton textile enterprises increased by 2.3% year-on-year from January to April, and the growth rate dropped by 5.0 percentage points from January to March; The industrial added value rate was 13.9%, down 1.1 percentage points from January to March.

From January to April, the total profit of cotton textile enterprises decreased by 9.6% year-on-year, which was 3.6 percentage points higher than that of January to March. The profit rate was 3.4%, down 0.7 percentage points year on year and up 0.2 percentage points from January to March.

From January to April, the number of loss-making enterprises in cotton textile industry increased by 62.9% year-on-year, up by 38.4 percentage points from January to March; The loss was 28.93%, a decrease of 2.1 percentage points from January to March and an increase of 11.2 percentage points year-on-year.

From January to April, the industrial added value of cluster enterprises increased by 1.2% year-on-year, and the growth rate dropped by 0.5 percentage points from January to March; Total profit decreased by 32.3% year-on-year, and the decrease was 17.3 percentage points higher than that of January-March, which was significantly higher than that of tracking key enterprises. On the whole, inflation has soared, the stock market has fallen, the global economic growth rate and prospects have declined significantly, the market consumption expectation is insufficient, the power has declined, and the inventory of terminal clothing has increased. The international cotton price soared, the profits of some textile enterprises in Southeast Asia dropped to the lowest level in ten years, and the production was in trouble. Recently, the domestic cotton price is significantly lower than the international cotton price, and the devaluation of RMB is conducive to the export of domestic textile products.