Economic Observation: The Textile Market Has Improved But Not As Expected, And Enterprises Have Low Confidence In The Future Market

　　 At present, the market has improved to a certain extent, but it is still less than the expectation of the peak season. The market competition is fierce, the cost pressure of enterprises is large, and the profit space is compressed. The enterprise expects that the market will maintain the status quo in the short term, and it is difficult to make significant improvement. The expectation of the market in the later period is not high. In order to track the operation of cotton textile enterprises in a timely manner and understand the changes in the cotton textile market, the China Cotton Textile Industry Association recently conducted the 102nd major research on the major cotton textile related markets in China. The following is the information reflected by various markets, cotton textile and related enterprises:

　　 Raw material market

　　 Cotton: The market sentiment has eased recently, and the spot price of cotton has not fluctuated significantly. The spot market is sufficient, but the downstream demand is less than expected, and the new orders are limited. Textile enterprises replenish the stock as needed, and the spot delivery remains weak. Recently, the domestic sales price of 3128B Xinjiang cotton is about 15000 yuan/ton. Lack of confidence in the late market, short-term domestic cotton prices may continue to fluctuate between regions.

　　 Polyester staple fiber: recently, the price of polyester staple fiber is weak under the condition of high supply and lack of terminal confidence, and the mainstream transaction price is about 7000 yuan/ton. The price of polyester staple fiber is greatly affected by the cost of raw materials, and the downstream terminal demand is limited. At the same time, there is a lack of cost support. It is expected that polyester staple fiber will be adjusted in the future.

　　 Viscose staple fiber: recently, the price of dissolving pulp has dropped, and the price of viscose staple fiber has fluctuated. The market price has been slightly reduced to about 13600 yuan/ton. The downstream market demand for viscose yarn is still weak, the yarn shipment is light, the conventional yarn inventory shows an upward trend, and the enterprise's enthusiasm for purchasing raw materials is not high. It is expected that the price of viscose staple fiber will remain weak in the short term.

　　 Yarn market

　　 Pure cotton yarn: recently, the enterprise has maintained normal production, and the order volume has improved from last month, but it is not as expected in the peak season. In addition, due to the influence of cotton prices, the price of cotton yarn is not ideal. Downstream customers have low acceptance of high priced products, and the price of yarn is difficult to rise. At present, the enterprise is facing greater cost pressure. The enterprise expects that the current tepid market situation will continue, and the expectation for the later market is not high.

　　 Vortex spinning: The arrival of the traditional peak season, together with the closing of the exhibition, has boosted the market to a certain extent. The number of orders received by enterprises has increased, but whether the follow-up can be implemented depends on the actual demand. At present, the enterprise is working at full capacity. Orders are still short and smooth, and production and sales are basically balanced. The enterprise will continue to follow the market changes to research and develop differentiated yarns. The current market lacks substantial positive boost, and enterprises are cautious about the later market.

　　 Color spinning: The market is very flat recently, the factory starts normally, and the production and sales are basically balanced, but the profit situation is not as expected. The domestic demand market "Jinsan" in the downstream textile and clothing industry is not performing well, and small batch orders are in the majority. Enterprises still keep a cautious wait-and-see attitude towards the market situation, hoping that the signs of the later peak season will appear.

　　 Differentiated yarn: the yarn exhibition has a certain role in boosting differentiated products. Recently, inquiry and proofing have increased. At present, the enterprise has opened at full load, but the proportion of large orders and long orders is very small. Orders are still mainly for export, which is better than domestic orders. Product inventory is maintained at a normal level. Affected by the internal and external environment, the profitability of products has declined significantly, and operators generally believe that the market situation will not improve significantly in the short term.

　　 Polyester yarn: At present, the opening of enterprises is relatively normal, and the orders in the peak season have increased, but most of them are small orders. The quality in the peak season is lower than that in previous years. The product inventory remains at a regular level, and the market competition intensifies, leading to serious compression of product profit space. As more and more pure cotton enterprises move into the non cotton field, the industry competition will be more intense in the future.

　　 Viscose yarn: orders in the recent peak season increased but were still less than expected. The enterprise's start-up rate was high, product prices remained stable, inventories increased, and profit margins declined. At present, the downstream is still not fully started, the startup rate is low, the market is still more wait-and-see, and confidence in the future market is generally weak.

　　 Fabric market

　　 White grey cloth: At present, the production and sales of white grey cloth market continue to remain light, and the domestic market demand has not yet started. The weaving factory has limited new orders, and the opening rate remains at about 60%. The prices of grey fabric products in some regions have declined steadily, and it is unlikely that they will recover in the short term. Affected by the tariff increase imposed by the United States, China's grey fabric export situation is more serious. Some Chinese textile mills with overseas layout also face the risk of order transfer.

　　 Yarn dyed fabric: the overall market is stable, the overall order volume is lower than expected, and the new orders are limited, mainly in small batches and multiple varieties. Recently, the price of raw materials has fluctuated and increased, the price of medium and low count cotton yarn has dropped significantly, and the price of high count pure cotton yarn is relatively stable. Most enterprises purchase on demand and stock a small amount of goods. The price of fabric products is relatively stable, but the market competition is fierce, and it is difficult to set prices locally. For the future market, enterprises hold a cautious wait-and-see attitude and expect further improvement.

　　 Denim: Recently, the price of denim yarn is stable. The price of pure cotton 10 inch count OE denim yarn is about 13950 yuan/ton, and the price is slightly reduced. The price of indigo dye is about 40000 yuan/ton. The export market has good resilience, and the overall situation is better than that of the domestic market. Export orders remain stable, but the profit margin has declined significantly. Based on the current macro situation, we are cautious about future enterprises.