It Is Still Time To Recover The Market Demand For Dyed Fabric.

Over the past month, domestic and foreign cotton futures and spot prices have risen; yarn market overall downturn, pure cotton yarn prices continued downward, the decline narrowed from last month; dyed fabric market continued weak, insufficient orders, capacity utilization rate decreased, prices fell.

1. Raw material Market

Since mid April 2020, domestic and foreign cotton market prices have picked up due to the continuous improvement of domestic epidemics and the slight easing of foreign epidemic. In May 14th, the average spot price of domestic 3128B grade cotton was 11770 yuan / ton, up 260 yuan / ton from the same month last month. According to the statistics of China Cotton Association, about 50% of raw materials of textile enterprises are stored for more than a month. The overall downturn of the yarn market, cotton yarn market continued to slack, prices continue downward, conventional varieties pure cotton yarn fell in the range of 400 yuan / ton, high pure cotton yarn fell by about 900 yuan / ton, the decline narrowed last month. According to the survey, in order to alleviate the pressure of cash flow, some spinning enterprises choose to take the goods at a low price, go stock and keep costs.

2, yarn dyed fabric Market

Since mid April, overseas epidemic is still continuing. Foreign major brand shops have been closed down. Overseas market demand is weak. Orders for export color weaving enterprises have been shrinking and product inventory pressure is increasing. It is understood that 75% of the survey enterprises indicated that the export orders were less than half of the normal level, and the subsequent orders were seriously inadequate. The capacity utilization rate of enterprises is about 65%, down 10 percentage points from the same period last month. Due to the delay in the payment period of foreign customers, 85% of the research enterprises indicated that the inventory of the products was at least one month, and the capital chain was under great pressure.

In terms of price, due to the continuous downward trend of cotton yarn prices, the demand for terminal market recovered slowly, the dyed fabric market continued to be weak as a whole, the price of products decreased slightly, and profit margins were squeezed.

In order to reduce the pressure of insufficient orders, improve production efficiency and reduce the cost of enterprises, more than 80% of the survey enterprises have implemented the staff rotation system, adjusted the working hours of auxiliary workers, and rationally arranged the opening rate. During the May 1 holiday, enterprises often choose to take a vacation or extend their vacation. Part of the domestic sales enterprises said that resistance is heavy and competition is fierce, and sales effect is not obvious in the short term.

3, outlook for the future

On May 14th, the Standing Committee of the Political Bureau of the CPC Central Committee held a meeting. The meeting pointed out that we should deepen structural reform of supply side, give full play to China's super market advantage and domestic demand potential, and build a new pattern of domestic and international double circulation and mutual promotion. Under the premise of normalizing epidemic prevention and control, we should continue to focus on key industrial chains, leading enterprises and major investment projects, and open up plugging points, connect breakpoints, and strengthen factor protection. For the post market situation, the survey company said that although the United States and Europe intend to lift the state of emergency or relax border control and control, and actively resume work and resume production, the overall recovery of the market is still waiting for some time, and most of them hold a wait-and-see attitude.

(the above contents and data are from a sample survey of yarn dyed enterprises, for reference only).