Report on China's cotton textile industry prosperity in January 2021(2)

Update:02 Apr 2021
Summary:

Production index In January, the production index was 4 […]

Production index
In January, the production index was 48.48. According to the coordinated research of China National Cotton Bank, in mid-to-early January, most enterprises started operations at full capacity, and the equipment opening rate basically maintained 100%. In late January, as the Spring Festival approaches, the factory mainly employs local employees and basically arranges holidays according to the usual practice in previous years. There are many migrant workers in the factory. Although they call for the new year on the spot, there are still employees who choose to return to their hometown, and the downstream market is gradually clear During the holidays, textile companies have successively arranged for employees to go home early to gradually reduce the opening rate. In January, the operating rate and the production of gauze decreased month-on-month. According to the data from the China National Cotton Bank, in January, 41.48% of companies had a month-on-month decline in yarn production, 49.82% of companies had a month-on-month decline in cloth production, and 28.67% of companies had a month-on-month decline in operating rate.
Product Sales Index
In January, the product sales index was 52.72. In the same month, the yarn factory orders were good. Conventional pure cotton yarn orders can basically be scheduled to March, and some non-cotton yarn production orders can be scheduled to April-May; in terms of grey fabrics, domestic orders are generally better than export orders, and orders for pure cotton fabrics It can be scheduled to the beginning of March, yarn-dyed fabric orders can basically last for a month, and denim orders can be scheduled for about 45 days. However, due to the Spring Festival holiday, domestic logistics is limited, and transportation in many places is basically at a standstill. Therefore, the overall sales of yarn and cloth in January decreased from the previous month. From the perspective of market prices, the prices of yarn and cloth continued to rise, and the rate of increase has expanded. Specific data, the average price of 32 pure cotton carded yarns is 23880 yuan/ton, an increase of 1771 yuan/ton from the previous month, and the average price of pure cotton grey cloth (32*32 130*70 2/1 47" twill) is 5.38 yuan/ton, an increase from the previous month. RMB 0.29/m. Generally speaking, although the sales volume of yarn and cloth decreased in January, the sales price rose at a higher rate driven by the increase in the price of raw materials, which drove the increase in product sales index.
Product inventory index
In January, the product inventory index was 49.67. At the end of January, downstream traders had holidays one after another, and logistics began to be restricted. Judging from the coordinated research situation of China National Cotton Bank, the logistics of yarns basically remained normal, the delivery of grey fabrics has been stopped successively, and the company's inventory has increased compared with the previous month. According to the data from the China National Cotton Bank Co., Ltd., in January, the proportion of companies that indicated a decrease in yarn inventory was higher than that of companies that increased, while the proportion of companies that indicated an increase in cloth inventory was higher than that of declining companies. Specifically, 44.94% of the companies with a month-on-month decline in yarn inventory, 34.74% of companies with a month-on-month increase; 27.11% of companies with a month-on-month decline in cloth inventory, and 50.64% of companies with a month-on-month increase.
Business index
In January, the business operation index was 47.57. In the same month, driven by the price increase of upstream cotton and chemical fiber staple fiber, the sales price of yarn and cloth increased simultaneously, and each yarn count increased by more than 1,000 yuan/ton. The company said that due to the large price increase, there was no large-scale purchase in the downstream, and the company's main business income for the month fell. In terms of profit, most companies said that they were in a state of guaranteed profit or meager profit, and a few companies said that their profits had increased compared with the previous period. . According to the data from China Cotton Bank's coordinated investigation, in January, the proportion of companies whose main business revenue increased from the previous month was 24.34%, and the proportion of companies whose revenue decreased from the previous month was 56.09%; the proportion of companies whose total profits increased from the previous month was 32.02%, which was a decrease from the previous month. Of enterprises accounted for 48.88%.
Business Confidence Index
In January, the business confidence index was 54.73. Although a cluster of epidemics occurred in many places in China that month, the epidemic was effectively controlled under the scientific prevention and precise policies of government departments at all levels. Most companies said that domestic market demand will be further released after the Spring Festival. In terms of export sales, as vaccines continue to go on the market, production capacity continues to increase, and foreign vaccination is progressing in an orderly manner, the recovery of the European and American markets may accelerate. Enterprises have strong confidence in the market outlook. Some companies with a large number of non-local employees are worried that due to the impact of the epidemic, the rate of worker arrivals after the Spring Festival will decline, which will have an impact on production after the year. According to the data from China Cotton Bank's coordinated investigation, in January, the proportion of enterprises that believe that the market outlook is positive is 51.77%, and the proportion of enterprises that believe that the market outlook is weak and downward is 4.5%.
Note: China's cotton textile industry prosperity index is collected from nearly 500 sub-cotton textile enterprises across the country. It is calculated by weighting multiple major indicators with reference to the national manufacturing PMI and other index formulation methods. When the index is higher than 50, it means the cotton textile industry The prosperous level of this month is better than that of the previous month. If it is lower than 50, it means that the prosperous level of this month is not as good as that of last month.
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