China’s cotton textile industry climate index report in June

In the first half of this year, China’s economy sus—tained and steady recovery, with major macro indicators within a reasonable range, the average climate index of China’s cotton textile industry was 50.27, up by 2.43 compared with last year. With the continuous consolida—tion of pandemic prevention and control in China and the precise implementation of macro policies, China’s cotton textile industry actively practices the new development pattern, actively adjusts, and maintains the overall stable and good operation situation.

In June, China’s cotton textile climate index was 49.96, down 1.28 from the index in May, slightly lower than the threshold separating contraction from expan—sion. In terms of sub—indexes, raw material purchasing index, product sales index and business confidence in—dex increased month—on—month, while raw material in—ventory index, production index, product inventory index and business performance index decreased compared with May.

Raw material purchasing index

In June, the raw material purchasing index was 51.86, up 1.43 from the index in May. In terms of market prices, influenced by the com—modity market, the international cotton futures and spot prices have generally risen, while the domestic cotton prices have continued to rise in early June and remain volatile in late June.The CotlookA index averaged 94.5 cents/lb, up 3.61 cents/lb month—on—month. The average price of 3128B was 16,255 yuan/ton, up 139 yuan/ton month—on—month. For chemical fiber staple,the price of viscose staple fiber was reduced in late May.After June, it remained stable, and polyester staple fiber went up as a whole. The average price of mainstream vis—cose fiber in the month was 12,767 yuan/ton, down 956 yuan/ton from the previous month; The average price of 1.4d direct spinning polyester staple fiber was 6,847 yuan/ton, up 50 yuan/ton month—on—month. From the cotton spinning enterprise procurement situation, cotton procurement situation is slightly better than non—cotton fiber. The cotton purchasing index was 54.1, and the non—cotton fiber purchasing index was 50.4.

Raw material inventory index

In June, the raw material inventory index was 48.48,down 0.25 from the index in May. Affected by the out—break in Southeast Asia, the market has received relative—ly large orders in the early stage, enterprises have started to operate well, and raw materials have been consumed quickly. According to the survey data of China Cotton Tex—tile Association, in June, the proportion of enterprises with cotton inventory decreased month—on—month was 42.82 percent, which was higher than that of enterprises with cotton inventory increased by 14.47 percentage points.The proportion of enterprises with non—cotton fiber in—ventory decreased from the previous month was 42.83 percent, which was higher than that of enterprises with non—cotton fiber inventory increased by 15.91 percentage points.

Production index

In June, the production index was 49.15, down 2.92 from the index in May. According to the survey, the start—up of large enterprises remains high and the production is full load, while the start—up of small and medium—sized enterprises is slightly reduced, and the product output has decreased compared with May. Due to the high num—ber of small businesses participating in the survey, the production index fell. According to the survey data, 34.37 percent of the enterprises with yarn production decreased month—on—month, which was 3.98 percentage points higher than that of the enterprises with yarn production increased; 19.3 percent of the enterprises with lower opening rate, which was 9.42 percentage points higher than that of the enterprises with higher opening rates.

Product sales index

In June, the product sales index was 50.62, higher than the threshold separating contraction from expan—sion, but 2.37 lower than the index in May. From the market price, the price of cotton yarn remained stable in June after rising at the end of May; Gray cloth prices weak downward in early June, and remained stable in mid—to—late June. In terms of sales, yarn sales are better than cloth. According to the survey data, yarn sales of a third of enterprises decreased month—on—month, 1.86 percent—age points higher than that of the enterprises with yarn sales increased; The rise of product sales index is mainly driven by yarn price rise.

Product inventory index

In June, the product inventory index was 49.77, down 1.96 from the index in May. According to the survey, the shipment of cotton yarn was better than that of grey cloth, and the goods of blended products were higher than that of pure cotton products and pure chemical fiber products. The inventory of the survey enterprise basically maintained for about a month. According to the survey data, the proportion of enterprises with yarn inventory decreased month—on—month was 36.34 percent, which was 4 percentage points higher than that of enterprises with yarn inventory increased. The proportion of enter—prises with cloth inventory decreased month—on—month was 32.5 percent, which was lower than that of enter—prises with yarn inventory increased by 11.84 percentage points.

Business performance index

In June, the business performance index was 49.34,1.32 lower than that in May. The main business income index was 50.38, 1.31 lower than that in May. The total profit index was 48.3, 1.33 lower than that in May. In June,yarn prices rose slightly, the main business income of enterprises increased slightly. According to survey data,the proportion of enterprises whose main business in—come has increased from the previous month is 39.46 percent, which is 3.84 percentage points higher than the proportion of enterprises that have declined. Due to slow price transmission, the downstream market acceptance is not high, the profit of the cotton textile industry is under pressure. According to the survey data, the proportion of enterprises whose total profit decreased from the previ—ous month was 47.33 percent, which was 16.95 percent—age points higher than the proportion of enterprises that increased.

Business confidence index

In June, the business confidence index rose 0.85 from May to 52.2. Enterprises say the global economic recovery has accelerated with the gradual introduction of vaccines and the massive U.S. economic stimulus package, and is expected to improve in the long run. In the domestic, the economy continued to recover steadily and showed a steady trend of improvement. From the perspective of the industry, the orders of cotton textile enterprises are basically sufficient and run well. They have not been affected by the off—season. The rotation of cotton reserves has increased the supply of high—quality cotton in the market. According to the survey data, 36.59 percent of the enterprises believe that the outlook is op—timistic, and 14.63 percent of the enterprises believe that the outlook is downward.