Through a survey of some cotton textile mills and middlemen in Jiangsu, Zhejiang, Shandong and other places, cotton yarn production, sales, and profits have improved significantly since late April compared with the previous two months (finished product inventories of some yarn mills have decreased, and cash flow pressure has gradually eased). Raw materials such as cotton and polyester staple fiber are mainly purchased as needed.
A 60,000-spindle spinning enterprise in Jiaozuo, Henan said that the company mainly purchases medium and low-grade Xinjiang cotton (inland warehouses), and its main products are high-bale bleached C40, C32, and C26 yarns. This year, the machine-picked cotton in southern Xinjiang is more suitable for the cotton distribution needs of yarn mills. On the one hand, the impurities are generally lower than in the machine-picked cotton in northern Xinjiang. Generally, there is no need to pick “three yarns” and secondary impurity removal; on the other hand, due to the cotton futures delivery warehouse in southern Xinjiang, Traders and processing companies are very enthusiastic about moving warehouses to inland warehouses for sales, and the quantities are large, and the space for selecting goods is also large.
Some textile and clothing companies reported that the pickup in production and sales in April and May was mainly caused by autumn and winter orders in the domestic market (many manufacturers directly gave up summer orders) and periodic retaliatory consumption. In addition, in May, weaving, clothing, and foreign trade companies in coastal areas such as Guangdong, Jiangsu and Zhejiang successively received orders from Europe, the United States, Japan and South Korea, but the situations of small quantities, large batches, and low profits are more common, and there are still 3 to 4 The resumption of supply contracts has been suspended for the month. Generally speaking, as the global COVID-19 epidemic is still in a high-risk stage, textile and clothing orders and trade, transportation, retail, etc. in developed countries such as Europe and the United States have only recovered to a limited extent. Coupled with significant exchange rate fluctuations and uncertainties in Sino-US trade relations, both parties to the contract are very Be cautious, not many companies have recovered 30-50% of textile and clothing export orders, and the domestic consumer market continues to play the role of the “mainstay”.
From the perspective of consumption habits and downstream replenishment timing, the domestic demand market will enter the off-season in July and August, and orders will be in a state of sluggishness. Coupled with the following three negative factors, some textile companies and gauze traders It is predicted that from June to September, some small and medium-sized enterprises will face pressure from production reduction, shutdown, holidays or even closure. First, the probability of a second wave of COVID-19 epidemics in autumn and winter increases significantly. Recently, Professor Zhang Wenhong pointed out: “The second wave of the epidemic will definitely happen, and it has already happened, but it has not happened in China.” Secondly, the trend of Sino-US economic and trade relations is becoming more and more subtle, and the risk of another trade friction has increased, and the textile and clothing export environment There may be variables again; third, there is great pressure on domestic employment and income, and whether the consumption capacity of textiles and clothing is sustainable deserves attention. </p
