At present, the textile market situation is relatively severe, corporate orders are seriously insufficient, and the operating rate and production capacity remain low. Although Zheng Cotton has fallen close to 2,000 points since May, textile costs have dropped significantly, and profits have improved significantly, the company is still in a difficult situation due to the lack of production orders.
Since the recovery progress of the cotton spinning industry is slower than expected, companies are cautious in purchasing raw materials, adhering to the principle of buying as they are used, and not daring to replenish the inventory in large quantities. According to the industrial inventory report of the National Cotton Market Monitoring System, as of early May 2022, the average cotton inventory usage days of the sampled companies was approximately 26.8 days (including the quantity of cotton imported to the port), a decrease of 2.8 days month-on-month and a year-on-year decrease of 17.4 days. The national cotton industry inventory is approximately 605,000 tons, a decrease of 9.4% month-on-month and a year-on-year decrease of 39.7%.
While the cotton spinning industry chain maintains low inventories, cotton sales have been greatly affected. Not only has the domestic cotton market purchased and sold slowly, but the quantity of imported cotton has also declined. According to the China Cotton Market Monthly Report (May Data), in April 2022, my country imported 173,200 tons of cotton, a year-on-year decrease of 57,000 tons and a year-on-year decrease of 24.8%. From September 2021 to April 2022, my country’s cotton imports were 1.1576 million tons, a cumulative year-on-year decrease of 1.013 million tons, and a cumulative year-on-year decrease of 46.7%.
Due to poor downstream consumption, the quantity of imported yarn purchased has also dropped significantly. In April 2022, my country’s cotton yarn imports were 119,000 tons, a year-on-year decrease of 113,000 tons, and a year-on-year decrease of 48.7%. From September 2021 to April 2022, my country’s cotton yarn imports were 1.1224 million tons, a cumulative year-on-year decrease of 381,000 tons, and a cumulative year-on-year decrease of 25.3%.
The current epidemic has repeatedly disrupted the domestic economy. The United States is expected to officially implement an import ban on goods from China’s Xinjiang region from June 21. Consumption in foreign markets has cast a shadow. Whether domestic market consumption can pick up will be directly related to the fluctuation of cotton prices. Space.
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