Blank Market: production and marketing pressure consumption worrying
Blank Market: production and marketing pressure consumption worrying
Since March 2020, the domestic and foreign cotton prices in the period and spot market have declined significantly, and the prices of cotton yarn and grey cloth have been under pressure, which has led to a decline. Due to the influence of postponement and cancellation of export orders, the operating rate of grey cloth enterprises kept rising on a month on month basis. In the late March, the situation of insufficient orders and cold sales was highlighted. The inventory increased day by day. Some small-scale enterprises had the phenomenon of production reduction and shutdown, and the utilization rate of production capacity decreased compared with the early March.
Raw material Market
In March, under the influence of negative factors such as the rapid spread of overseas epidemic, global bulk commodities entered the decline channel, and Zheng cotton futures fell sharply. The maximum drop of cotton spot price in a month was more than 2000 yuan / ton. On April 9, the domestic spot price of 3128b grade cotton was 11350 yuan / ton, the purchase of textile enterprises was reduced, sporadic transactions were made in the market, and the recent cotton price remained low and volatile. The sales situation of cotton yarn market was good in the first ten days of March. Since the last ten days of March, the overall transaction in the market has become weak, and the price has continued to fall. The price of conventional varieties has fallen by about 1300 yuan / ton compared with the same period last month. The enterprise's willingness to reduce the price for shipment has increased. The actual transaction can be negotiated more often, the high count yarn market is relatively good, and the sales in some regions are OK. It is understood that most spinning enterprises still maintain normal production at present, and the yarn inventory is mostly about one month.
2. Grey cloth Market
In the last ten days of March, the overall purchase and sale of grey cloth market was cold, the orders of enterprises were compressed, and the pressure of export enterprises was particularly obvious. Enterprises generally faced with the situation that the orders that had been completed were delayed, even cancelled, and the subsequent orders were insufficient. Enterprises promoted production by transferring the export market or the domestic market, in order to reduce the impact of the epidemic. On the whole, in terms of production and marketing, the enterprise's operating rate has increased on a month on month basis, but the capacity utilization rate has decreased compared with the first ten days of March. In the face of the sluggish market demand, the enterprise's production reduction and production suspension have increased, and the product sales speed has been slow, resulting in the accumulation of inventory. At present, the inventory of most enterprises is about one month, and that of some export enterprises is about two months. In terms of orders, some large enterprises can arrange orders to the end of April or even may. Small enterprises are short of orders, mainly intermittent small orders. In order to maintain normal operation, they are forced to increase the production of conventional varieties. In terms of price, the quotations of most products fell by 0.2-0.5 yuan / ton compared with the same period last month. Market inquiry and purchase continued to decrease. There is still room for negotiation in actual transaction. In terms of classification, clothing grey cloth is under great pressure and home textile grey cloth is relatively good. In terms of efficiency, in the late March, the grey cloth market continued to weaken, most varieties have fallen as much as the previous increase, and enterprises are basically in a state of no profit, some enterprises even lost money.
3. Future prospects
Novel coronavirus pneumonia is expected to be 0.9% in 2020, with the latest international report on the epidemic. In the face of severe foreign trade situation, on April 7, Premier Li Keqiang presided over the national regular meeting, launched a series of measures to stabilize foreign trade, actively responded to the impact of the epidemic, and continued to implement some tax support policies of Inclusive Finance and small loan companies to help small and medium-sized enterprises through difficulties. On the whole, the impact of the current epidemic is still fermenting, and the global unemployment rate has increased significantly. By the end of March, the total number of people receiving unemployment insurance in the United States has exceeded the historical peak in 2009. The increase in the unemployment rate will further inhibit the consumption demand in the textile market. At the same time, the newly increased demand in the domestic market is weak, the pressure of export to domestic sales is heavy, and the capital turnover of enterprises is in trouble. Hope bank And other financial institutions can increase the support for textile enterprises to ensure the normal production and operation of enterprises.