February 2021 Cotton Textile Industry Report(2)

Update:23 Apr 2021
Summary:

Product Sales Index In February, the product sales inde […]

Product Sales Index
In February, the product sales index was 49.04. In the same month, the prices of yarn and cloth increased with the prices of raw materials, and the downstream market was on the sidelines. New orders were average, and most of the products produced were orders from previous years. According to the coordinated research and understanding of China National Cotton Bank, most spinning companies' orders are scheduled to March-April, some companies' orders can be scheduled to May, and weaving companies' orders are basically about one month. Due to the limited logistics during the Spring Festival, the sales volume of yarn and cloth decreased month-on-month. In terms of market prices, the prices of yarn and cloth continued to increase, but the increase was lower than that in January. Specific data, the monthly average price of 32 pure cotton carded yarns is 24536 yuan/ton, an increase of 656 yuan/ton month-on-month, and the monthly average price of pure cotton grey cloth (32*32 130*70 2/1 47" twill) is 5.6 yuan/ton. The month-on-month increase was 0.22 yuan/meter. It can be seen that the decline in product sales index in February was mainly caused by the decline in sales of gauze.
Product inventory index
In February, the product inventory index was 49.30. Due to the early holidays of downstream companies and the start of work later than spinning companies, coupled with the stagnant logistics and rising transportation costs, yarn and cloth were generally out of stock in February, and the inventory of cotton textile companies rose month-on-month. However, compared with previous years, companies Product inventory is at a low level. On the whole, the inventory level of weaving mills is higher than that of spinning mills. According to the data from the China National Cotton Bank, in February, the proportion of companies with a month-on-month increase in yarn inventory was 40.21%, and the proportion of companies with a month-on-month increase in cloth inventory was 45.49%.
Business index
In February, the business operation index was 45.09. In the same month, the prices of yarn and cloth increased due to the increase in raw material prices, but the increase was lower than the increase in raw material prices. Coupled with the decrease in sales volume, the company's main business income fell month-on-month and the rate of decline expanded. Enterprises report that due to the lag in price transmission, the profit in February was generally lower than in the fourth quarter of the previous year. According to the data from China Cotton Bank's coordinated investigation, in February, 16.18% of the companies whose main business income increased from the previous month, and 63.57% of the companies that declined from the previous month; and 14.27% of the companies whose total profit increased from the previous month, and decreased from the previous month. Of enterprises accounted for 65.17%.
Business Confidence Index
In February, the business confidence index was 54.7. After the holiday, the global epidemic situation has improved significantly, and vaccination continues to advance, and the global economy may usher in a period of strong recovery. The overweight stimulus policy of the United States has triggered turbulence in the international financial market, and the textile raw material market has fluctuated significantly. On the domestic front, epidemic prevention and control continue to maintain a good momentum. This year's "Government Work Report" pointed out that we must adhere to the strategic basis of expanding domestic demand and fully tap the potential of the domestic market. With the steady recovery of the domestic consumer market, the confidence of cotton textile enterprises in the market outlook has been further enhanced. According to the data from China Cotton Bank's coordinated investigation, in February, 56.23% of companies believed that the market outlook was positive, and 9.28% of companies believed that the market outlook was weak.
Recommended Reading : February 2021 Cotton Textile Industry Report(1)