Report on China's cotton textile industry prosperity in January 2021(1)

Update:26 Mar 2021
Summary:

2021 is the first year of the "14th Five-Year Plan" and […]

2021 is the first year of the "14th Five-Year Plan" and a year of special importance in the process of my country's modernization drive. In January, several localized epidemics occurred in many places in my country, and the production and operation of some enterprises were temporarily affected. With the active response, scientific prevention and control, and precise policies of local governments and relevant departments, the epidemic prevention and control have achieved remarkable results, and economic and social development Stable recovery. In general, the prosperity of my country's cotton textile industry continues to remain in the expansion range.
In January, the prosperity index of China's cotton textile industry was 50.80. In terms of raw materials, market prices increased. On the eve of the Spring Festival, companies continued to increase their raw material inventories, and raw material purchases increased. In terms of production, sales and inventory, companies began to arrange holidays one after another, and production slowed down. Orders from spinning mills are good and can basically be scheduled until April-May, and market prices are firm; orders from weaving mills are mainly for domestic sales, and orders can be maintained for 1-2 months, mainly in small batches and multiple varieties. As the Spring Festival approached, logistics was blocked, the overall sales of the company declined slightly, and the product inventory rose slightly.
Raw Material Purchasing Index
In January, the raw material purchase index was 55.77. From the price point of view, the CotlookA index rose first and then fell in January, with large fluctuations; domestically, domestic cotton prices continued to rise in the first half of the year. In the second half of the year, with the emergence of clusters of epidemics in many places in China, the replenishment of superimposed textile enterprises is nearing the end , Domestic cotton prices have fallen; for chemical fiber staple fibers, the price of viscose staple fibers rose sharply that month, with a cumulative increase of more than 2,000 yuan/ton during the month. Polyester staple fibers showed an upward trend in the first ten days of the year, and began to weakly decline in the second ten days. From the perspective of the purchasing situation of cotton spinning enterprises, 58.21% of the companies with a month-on-month increase in cotton purchases, and 53.73% of the companies with a month-on-month increase in non-cotton fiber purchases.
Specific price data, the average CotlookA index in January was 87.24 US cents/lb, an increase of 6.22 US cents/lb from the previous month, the average price of domestic 3128 cotton was 15,388 yuan/ton, an increase of 499 yuan/ton from the previous month; the average price of mainstream viscose fiber was 12787 yuan /Ton, up 2119 yuan/ton month-on-month; the average price of 1.4D direct-spun polyester short-term was 6,261 yuan/ton, up 533 yuan/ton month-on-month.
Raw material inventory index
In January, the raw material inventory index was 53.11. That month, the price of raw materials continued to rise, and the rate of increase expanded. As many governments across the country advocated celebrating the New Year on the spot, some companies started operations normally during the Spring Festival to increase raw material inventory to ensure production. According to survey data from the China Cotton Textile Industry Association (hereinafter referred to as the "China Cotton Industry Association"), in January, 56.38% of the companies with a month-on-month increase in cotton inventory, and 27.27% of companies with a month-on-month decline; non-cotton fiber inventories The proportion of enterprises with a month-on-month increase was 57.21%, and the proportion of enterprises with a month-on-month decline was 24.04%. In January, the price of viscose staple fiber rose sharply, cotton spinning enterprises increased their purchases, and non-cotton fiber inventories increased more month-on-month.

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