The Production And Sales Situation Of Cotton Textile Enterprises Started After The Festival Is Better

Affected by the Spring Festival holiday, logistics stagnated and Xinjiang cotton transportation volume sharply decreased. According to the China Cotton Information Network, as of January 30, the highway traffic volume of Xinjiang cotton in the past two weeks was 33800 tons, a sharp drop from the previous weekly traffic volume of 54000 tons.

In terms of inventory, as of January 27, the total commercial inventory of cotton was 4282800 tons,+09600 tons month on month. Among them, 3.7732 million tons of commodity cotton were produced in Xinjiang, and 314500 tons of domestic commodity cotton were produced in the mainland.

With the resumption of downstream textile production, demand is expected to pick up, the price of cotton in the mainland will take the lead in rising, the overall price difference between inside and outside Xinjiang will expand, and logistics will resume after the festival. The transportation volume of cotton in Xinjiang is expected to pick up steadily, with both supply and demand increasing. The performance of the demand side is still the focus of the market.

At present, the domestic cotton spot market is following the trend of price increase. The traders are willing to hold the price, and the actual transactions are few. Most of them are wait-and-see. The downstream cotton yarn prices are rising, and some enterprises are catching up with orders before the festival. The operating rate is slowly rising.

The number of days for textile enterprises in mainstream regions to store their inventory has decreased. Some textile enterprises have a compact inventory arrangement, low inventory operation, pre-sale mode. After the Spring Festival, they return to work and deliver goods. The production and marketing rate is good. The cotton mills have arranged orders for about 20 days, and the production is determined by sales. The textile enterprises are active in shipping conventional varieties, and actively wait and see to adjust the yarn price.

After the festival, the production and sales situation of cotton textile enterprises improved, and the commencement and resumption rate of textile enterprises maintained a high level. In the medium and long term, with the implementation of optimized prevention and control measures, China's manufacturing purchasing managers' index (PMI) was 50.1% in January, up 3.1 percentage points from the previous month. The economy is gradually on the right track, downstream consumption has kept a moderate rebound, cotton prices have risen, cotton textile industry confidence has been restored, and textile orders are expected to grow; The textile enterprises in the middle reaches have a low stock of raw materials in the same period, but their willingness to replenish raw materials on a large scale at high prices has decreased, and their procurement is still cautious. Unless consumption has improved significantly, the cotton price has limited room for subsequent rise, and the market has the risk of excessive overdraft expectations. New orders should be carefully involved, and the majority of early orders should be held.