The Spring Festival is only a little over a month away. How is the recent production situation of textile companies? Judging from recent visits and surveys to Nanyang textile enterprises, enterprises still face certain difficulties in production and sales.
The sales of most local enterprises have declined, downstream orders have decreased, and there are basically no orders for high-count yarns. Market orders are mainly for carded, medium- and low-count yarns and semi-combed yarns. A small number of textile enterprises can receive combed yarns with a count of 32-40. Yarn Orders. Judging from the specific number of orders received by each textile enterprise, the largest order is mainly for 40 semi-combed yarns, and the order volume is about 50 tons. At present, the ex-factory price of carded yarn with a count of 32 is about 22,600 yuan/ton, and the ex-factory price of a semi-combed yarn with a count of 40 is about 35,000 yuan/ton.
In addition, the sales situation of textile companies is also different. Textile companies with better cost control have basically no cotton yarn inventory due to low spinning costs, great price advantages and high sales volume. Some companies have high inventory costs due to high raw material costs, exorbitant sales prices, low order volumes, and increasing inventories. Enterprises with large inventories have recently seen their operating rates decrease due to increased sales pressure. In order to ensure the stability of their employees, they have arranged production through rotational leave.
In December, the profits of each textile enterprise were different. For textile enterprises with good cost control, the net profit per ton of yarn could still be maintained at 5-10%. For textile enterprises with poor cost control, product profits were poor and they basically suffered losses. According to local knowledge, the operating rate of some enterprises is maintained at 100%, while the operating rate of textile enterprises with operating difficulties is less than 50%. They sell cotton yarn in stock while retaining some employees for production. It is reported that textile companies with good market conditions this year are expected to have a five-day holiday, while textile companies with large inventories will have a long holiday, from January 25 to February 15.
Although the market has been somewhat divided recently, the cotton market is still mainly rising with oscillations. Upstream cotton companies are optimistic about the future and continue to hold cotton prices high. In order to ensure normal production after the holiday, downstream textile companies have increased their inventory replenishment, which has led to a recovery in cotton sales. Judging from previous years, in order to ensure the stability of materials used after the Spring Festival, downstream weaving companies will increase purchases before the Spring Festival, which will help support and drive the cotton market.
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