Cotton textile enterprise survey report in March：Textile demand reduced,finished product inventory increased

The domestic pandemic situation improved significantly in March， and textile companies started to resume production one after another. However， due to the rapid spread of foreign pandemic situation， foreign trade orders have been cancelled， domestic demand orders have not yet been fully restored， and sales of finished products have been slow. According to a survey conducted by Chinas cotton early warning system on more than 90 designated textile companies across the country， raw material inventories of textile companies declined， textile production rose month-on-month， and yarn and cloth inventories increased slightly.

The output of textiles increased month-on-month

In March， as the number of resuming enterprises increased， the output of textiles rebounded compared with the previous month. According to the survey， yarn output increased by 43.3% month-on-month and decreased by 5.7% year-on-year， of which pure cotton yarn accounted for 67.4%， a decrease of 0.8 percentage points from the previous month； blended yarn and chemical fiber yarn accounted for 32.6%， an increase of 0.8 percentage points from the previous month.

Cloth output increased by 41.3% month-on-month and decreased by 4.9% year-on-year， of which the proportion of pure cotton cloth decreased by 0.6 percentage points from the previous month. The yarn sales rate was 62%， a decrease of 7.5 percentage points from the previous month.

The current finished product inventory of spinning companies is 24.77 days， an increase of 0.62 days from the previous month. The finished product inventory of grey cloths was 30.75 days， an increase of 1.54 days from the previous month.

The price of cotton yarn inside and outside fell

The price of cotton yarn both in and outside this month has dropped. The average price of domestically produced 32 cotton yarns in March was 20，444 yuan/ton， down 112 yuan/ton from the previous month， or 0.54%， down 2，696 yuan/ton or 11.65% from the same period last year； the average monthly price of imported 32 cotton yarns was 20，360 yuan/ton， down 149 yuan/ton from last month， or 0.73%， down 2，519 yuan/ton or 11.0% from the same period last year.

Decline in raw material inventory

This month， the operating rate of textile enterprises increased， but affected by foreign pandemics， foreign trade orders have decreased significantly， and raw material prices have also been declining all the way. As of March 31， the cotton stocks of textile enterprises were 714，200 tons， a decrease of 76，000 tons from the end of last month and a decrease of 89，500 tons year-on-year. Among them， 42% of enterprises reduced cotton stocks， 12% increased stocks， and 46% remained basically unchanged.

The proportion of textile enterprises using Xinjiang cotton increased， the proportion of cotton produced in the mainland decreased， and the proportion of imported cotton decreased：

●The use of Xinjiang cotton by textile enterprises accounts for 91.96% of the total cotton consumption， an increase of 2.42 percentage points from the previous month， and an increase of 17.10 percentage points yearon-year， of which the reserve Xinjiang cotton accounted for 5.23% and this years Xinjiang cotton accounted for 94.77%.

●Textile companies use 1.19% of cotton produced in the mainland， a decrease of 1.83 percentage points from the previous month. Among them， the reserve cotton produced in the mainland accounted for 8.15%， and this years cotton produced in the mainland accounted for 91.85%.

●The proportion of imported cotton used by textile enterprises is 6.85%， a decrease of 0.59 percentage points from the previous month and a decrease of 5.35 percentage points year-on-year.