According to the feedback of some cotton textile enterprises in Henan, Anhui, Shandong and other places, the cotton yarn inquiry/shipment has continued to slow down since mid-May, the yarn accumulation rate has been rising (the inventory of finished products of individual textile enterprises has risen to a near month high), coupled with the downstream textile factory/fabric/clothing enterprises partly or fully on credit, 1-3 month account period and other procurement modes are becoming more and more. Cotton mills can only choose between sales and cash flow, so it is difficult to change the growth of the proportion of cotton mills/cloth mills to limit production and reduce production.
From the survey, in recent days, cotton textile factories in some areas have more high-temperature holidays, ranging from 3-5 days to 10-15 days, and pay basic living expenses to employees. Some enterprises although the conversion of differentiated yarn, blended yarn (including CVC) and Lyocell yarn, but because the market production, demand is also in a saturated, supersaturated state, conversion is not easy, shipment is not easy, so the growth of cotton yarn stock slowed down, but other yarn inventory also continued to accumulate, a lot of money.
A medium-sized cotton factory in Texas said that in recent years, Xinjiang's production capacity continues to expand, squeezing the mainland's pure cotton production capacity, mainland textile enterprises can only try to avoid the competition with the same count, the same index of Xinjiang cotton yarn, but this year C50S and above high-count yarn market demand not only did not grow but continued to shrink, blended yarn, new fiber yarn, differentiated cotton yarn market expansion space has been very limited. The cotton mill is also competing for customers to a white-hot degree, and the new conversion enterprises want to share a piece of the pie is not easy. The company believes that for cotton mills, it is necessary to maintain the stability of cash flow and skilled workers through a series of measures such as limiting production, reducing production and dumping inventory, survive the off-season in June to August, and meet the arrival of "gold nine silver ten", to ensure that it does not fall before dawn.
Since June, cotton prices fell significantly higher than cotton yarn, cotton mill immediate profits continue to recover, most of the textile enterprises think it is of little significance, on the one hand, cotton mill raw material inventory is mostly in about 1 month, the current cost of cotton spinning is still at a high level; On the other hand, textile enterprises currently do not value spinning profit margins, and the focus is on how to speed up yarn destocking and timely recovery of loans, in order to achieve the purpose of maintaining production and scheduling orders during the dry period.
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Limited production enterprises continue to increase through the industry off-season
