August China cotton textile industry boom report

In August, the international environment remained complex and severe, with rising unilateralism and protectionism, and the development of international trade and economy faced many challenges. With the gradual effect of domestic policies to expand domestic demand, boost confidence, and guard against risks, the recovery of the national economy has accelerated and new progress has been made in high-quality development. From the perspective of the industry, the landing of the reserve cotton wheel out and cotton import sliding tax quota policy has boosted market confidence, near the traditional textile season, the downstream market has gradually improved, enterprise production and sales have rebounded, the operation has improved, and the industry boom level has further rebounded.

In August, China's cotton textile prosperity index was 50.5%, up 1.5 percentage points from July, rising to above the line of growth and contraction, and the industry prosperity level has risen significantly. From the sub-index point of view, the composition of China's cotton textile boom index of 7 sub-indexes, raw material purchase index, production index, product sales index, business management index, business confidence index is higher than the critical point, raw material inventory index, product inventory index is lower than the critical point.

Raw material purchase index

In August, the raw material purchase index was 52.2%, up 3.6 percentage points from July, rising above the line of expansion and contraction. From the point of view of raw material market prices, cotton prices remained stable in the early part of the year, and cotton prices rose in the late part of the year as some commodity prices rose. Polyester staple fiber and viscose staple fiber were respectively driven by rising polyester prices and downstream market improvement prices rose. Specific data, domestic 3128 grade cotton spot monthly average price of 18064 yuan/ton, up 371 yuan/ton, an increase of 2.1%; 1.4D direct spinning polyester staple fiber monthly average price 7521 yuan/ton, up 175 yuan/ton, up 2.38%; Mainstream viscose fiber monthly average price 12718 yuan/ton, up 157 yuan/ton, an increase of 1.25%. From the perspective of procurement, the supply of reserve cotton increases the market supply, and cotton textile factories have high enthusiasm for bidding and increase raw cotton procurement. Driven by the improvement of market demand, the purchase volume of chemical fiber staple fiber in cotton textile factory also increased month-on-month.

Raw materials inventory index

In August, the raw material inventory index was 49.6%, up 0.8 percentage points from July, and the decline in raw material inventories continued to narrow. In the same month, driven by the recovery of production and downstream demand, cotton textile factories increased raw material procurement, the transaction rate of cotton reserve continuously maintained 100%, the enthusiasm of enterprises to bid was high, and the transaction of chemical fiber staple fiber was also improved. The improvement of raw material inventory level provides guarantee for the normal and orderly production of enterprises. From the sub-index, cotton inventory index 49.9%, up 1.0 percentage points from July; Non-cotton fiber inventory index 49.4%, up 0.7 percentage points from July.

Production index

In August, the production index was 50.1 percent, up 0.8 percentage points from July. Near the peak season in September, the downstream market demand has improved, the production of enterprises has accelerated, the spinning mill has basically maintained full capacity, and some weaving mills with low early opening rate have also risen to more than 90%. From the sub-index, the cotton textile plant equipment opening rate index 50.0%, up 0.8 percentage points from July. The yarn output index was 50.6%, up 1.6 percentage points from July, and the cloth output index was 49.5%, up 0.1 percentage points from July.

Product sales index

In August, the product sales index was 51.1%, up 1.6 percentage points from August. From the market price point of view, driven by the rise in raw material prices, gauze prices rose simultaneously. In the same month, the average price of 32 pure cotton combed yarn was 24215 yuan/ton, up 469 yuan/ton, an increase of 1.98%, and the average price of pure cotton grey cloth (32*32130*702/147" twill) was 5.1 yuan/meter, up 0.1 yuan/meter, an increase of 2.0%. From the perspective of market sales, the downstream inquiries increased, the new orders were mainly short orders and small orders, and the market purchase and sales picked up. In that month, the yarn sales index was 51.1%, up 2.0 percentage points from July; The cloth sales index was 50.3%, up 0.5 percentage points from July.

Product inventory index

In August, the product inventory index was 49.8%, up 1.0 percentage points from July, and the level of enterprise product inventory further improved. The market sales improved in the month, the enterprise accelerated the shipment rhythm, the yarn inventory was reduced, and the blank fabric inventory was basically maintained within 1 month. From the sub-indexes of the product inventory index, the yarn inventory index was 50.0%, up 1.5 percentage points from July; The inventory index was 49.6%, up 0.5 percentage points from July.

Enterprise operating index

In August, the enterprise operation index was 50.7%, up 1.8 percentage points from July, and the enterprise operation efficiency improved. Driven by the rise in the price of upstream raw materials, the price of gauze products has risen slightly, while the downstream market procurement activities have accelerated, especially the increase in traders' stocks, and the profit squeeze of cotton textile factories has eased. From the sub-indexes that constitute the enterprise operation index, the main business income index was 51.3%, up 2.2 percentage points from July; The total profit index was 50.1%, up 1.4 percentage points from July.

Business confidence index

In August, the business confidence index was 50.1%, up 0.8 percentage points from July, and market confidence continued to improve. In order to promote consumption and speed up the recovery of the domestic economy, a series of macro-control policies and measures have been intensively introduced since the end of July, and enterprises' confidence in market development has been further enhanced. Superposition the traditional peak season is approaching, the downstream market is active in buying and selling, the cotton textile factory orders have increased, and the enterprise is more optimistic about the later market development.

China's cotton textile industry boom index collected from nearly 500 cotton textile factories in the country, referring to the national manufacturing PMI and other index formulation, through the weighted calculation of a number of major indicators, when the index is higher than 50, it means that the cotton textile industry boom this month is better than last month, below 50, it means that the boom this month is less than last month.

(Information source: China Cotton Textile Industry Association)