Textile Industry News Weekly (06.01- 6.10)

Hot focus

In the first half of the year, pressure continues to overlap. How can these cotton textile enterprises break through?

Recently, influenced by the Sino US trade friction and the new crown pneumonia epidemic situation, more than 5000 employees of cotton spinning enterprises - Shandong Hualong textile Limited by Share Ltd were declared bankrupt by the court, and shook the textile circles' circle of friends. However, some enterprises are adapting to the situation and looking for difficulties and difficulties.

* the production line of non-woven fabrics and masks on Lanxi, and the order of textile enterprises in Lanxi will be discharged after July.

Purchasing new equipment and developing new products, old town cotton textile enterprises (De Yi An Cotton Textile Co., Ltd.) have a way to survive.

Construction of 300 thousand spindles intelligent spinning project, Ming Sheng Textile high efficiency spinning plant.

In the first five months, China's foreign trade import and export value is 11 trillion and 540 billion yuan.

The General Administration of Customs announced on June 7th that the total value of China's foreign trade and import and export amounted to RMB 11 trillion and 540 billion yuan from 1 to May this year. Exports continued to grow in May last month.

Customs statistics show that from 1 to May this year, the total value of China's foreign trade imports and exports was 11 trillion and 540 billion yuan, down 4.9% from the same period last year. In the month of May, China's import and export value was 2 trillion and 470 billion yuan, down 4.9% compared to the same period last year, of which, exports were 1 trillion and 460 billion yuan, an increase of 1.4%, and imports of 1 trillion and 10 billion yuan, down 12.7%.

Industry trend

The current situation of cotton yarn Market in May is relatively warm.

The price of cotton yarn on May 14th -21 was limited, although it continued to brush the new low in the new year, but it fell by only 8 yuan / ton compared with last week. As of May 21st, the domestic C32S average price was closed at 18732 yuan / ton, narrowing the decline in the ring ratio. Cotton spot trading is relatively active, price shocks upward, from the entire industry chain inventory, the current upstream and downstream goods are relatively warmer, inventory is mainly backlog in the raw material end.

In April, the growth of some economic indicators in the textile industry was accelerated, and the demand recovery was strengthened.

The index data of relevant economic and textile industries in April showed that, in terms of social economic indicators, prices stabilized in April, the price of production links continued to decline, the recovery rate of manufacturing industry slowed down, and the state increased credit to stabilize the economy. Judging from the economic indicators of the textile industry in the month of April, the value added of textile industry and the export of textile and clothing increased to a positive year-on-year increase. The growth rate of fixed assets investment in textile industry still slowed down significantly compared to the same period last year, -32.5%.

Raw material Market

Domestic cotton prices went up slightly, and the price of downstream cotton yarn stabilized.

(18-22 May 2020)

This week, the futures market continued to be in a calm period. After a slight rebound from ICE and Zheng cotton futures, the market fell back, domestic cotton spot prices rose, downstream demand slowly recovered, cotton yarn prices stabilized, and the purchasing power of downstream businesses was not high.

China's cotton yarn imports decreased by more than 1/4 in April.

According to statistics, in April 2020, China imported 120 thousand tons of cotton, a decrease of 40% compared with the same period last year. In 2020 1-4, China imported 730 thousand tons of cotton, which was 13.1% lower than the same period last year. Since the 2019/20 (2019.9-2020.4), China has imported 1 million 140 thousand tons of cotton and reduced 20.8% by the same ratio.

Imports of cotton have dropped, and us share has returned to first place.

(April 2020)

In April, China's cotton imports fell. Imports of cotton 120 thousand tons, a decrease of 40%, a decrease of 30.58% over the same period last year; in 2020 1-4 months, China's total imports of cotton 730 thousand tons, down 13.1% compared with the same period last year; since the 2019/20 (2019.9-2020.4), China's total import of cotton 1 million 140 thousand tons, down 20.8% over the same period.

In the trade mode, the customs supervised the region's logistics goods most, nearly half, the general trade was close to 30%, the entry and exit goods in the bonded supervision place were nearly 20%, the largest number of countries in the country came from, and returned to the first place since July 2019, accounting for 56.7%; Brazil ranked second, accounting for 20.4%; India ranked third, accounting for 14%; others did not exceed 10%.

Domestic and foreign spreads continued to be positive, and sales of cotton fabrics increased.

(18-22 May 2020)

This week, domestic yarn spot prices continued to decline and hit a new low in the year. The national cotton market monitoring system yarn index CNCotton C32S average price 18761 yuan / ton, compared with last week fell 10 yuan / ton, yarn cotton price difference of 7239 yuan / ton, compared with last week reduced 99 yuan / ton; cotton yarn futures clearing average price 19332 yuan / ton, compared with last week rose 433 yuan / ton, higher than spot 571 yuan / ton, the price difference increased last week 443 yuan / ton.

International cotton spot: India cotton dumping at low prices, China's active demand

In recent weeks, Chinese textile enterprises have become more interested in low-priced India cotton. India cotton export quotas decreased by 2.5 cents, or 3.75%, while other locations only declined by 1.2-1.6%. Since May, the average price of cotton in India has dropped by 1%, while that in other places has increased by 4.5-9.5%. Brazil cotton prices are also far lower than that of American cotton and African cotton. India's domestic cotton prices continued to fall, and S-6 fell 1.1%.

The output of gauze decreased by 20% compared with the same period last year, and the utilization rate of equipment was less than 90%.

Tracking enterprise data shows that yarn and cloth output increased by 113.27% and 90.57% respectively in March. In the first quarter, the yarn production and textile production decreased by 23.91% and 20.20% respectively. As at the end of March, the utilization ratio of the spinning and weaving equipment of the enterprises was about 88%, of which 77% of the spinning equipment utilization rate was above 80%, accounting for 12 percentage points higher than that of the previous month, and 80% of the utilization rate of weaving equipment was more than 80%, accounting for 2 percentage points higher than that of the previous month.

Yarn production and inventory slowdown in April

Since April, domestic enterprises have been accelerating the resumption of production and production, and the global export of new products has been blocked. The export situation of textile industry has been blocked. The cotton textile production and marketing situation has slowed down as a whole. Raw material procurement has slowed down. 60%, the purchasing volume of enterprises has decreased, and the procurement of raw materials for enterprises has decreased by 4.41%, of which about 57% of raw material purchases have decreased.

Policies and regulations

Since June 1st, a number of new regulations on textile policy have been put into effect.

Starting in June 1, 2020, a number of policies and regulations related to the textile industry will be formally implemented. For example, the new regulations for the export of epidemic prevention materials, the scope of self-produced printing of certificates of origin, and the increase of loan interest rates by banks should not be allowed.

Us releases $200 billion tax product fourteenth batches exclusion list

In May 21, 2020, the United States Trade Representative Office (USTR) announced the fourteenth batch of product exclusionary announcements under the list of 200 billion tariff products, adding 78 products, including 5 textile products tax numbers.

The textile description and HS code excluded are as follows:

1.5603.14.9090: other non woven fabrics of rayon, other fabrics other than floor coverings, which are not impregnated / coated / covered, weighs more than 150 grams per square metre.

2.5603.92.0090: other non woven fabrics other than man-made fabrics, except for floor coated fabrics, non impregnated / coated / covered fabrics, 25g< square meters heavier than 70g;

3.5603.93.0090: other non woven fabrics other than man-made fabrics, except for floor coated fabrics, non impregnated / coated / covered fabrics, 70g< square meters heavier than 150g;

4.5701.90.1010: nylon and polypropylene handcrafted carpets, at least 1.2 square meters.

5.5901.90.4000: the painted canvas panel, which contains 50% of the canvas (excluding man-made fibres) and 50% of the paper, has a size of at least 9 cm but not more than 29 cm, and the width is at least 14 cm, but the height is not more than 37 cm. The thickness is not more than 0.6 centimeters, but not more than 3.5 centimeters. It is packaged in a retail mode, and each package contains no more than 12 wooden boards. 。

Insight Economics

China's apparel imports dropped significantly in the first quarter of US apparel imports

In the first quarter of this year, the United States showed a sharp decline in almost all categories of clothing imports to China, while imports to other regions generally stagnated. The results were quite different according to the category. Meanwhile, the United States had a two digit decline in the proportion of imports to almost all Chinese clothing categories. The decline in cotton clothing category was between 25-57%, but the decline in chemical fiber category was slightly smaller.

Before April, exports of clothing, textiles and footwear in Kampuchea increased by 1.67% over the same period last year.

According to the statistics of the Kampuchea General Administration of Taxation, the total export revenue of clothing, textiles and footwear (GTF) in Kampuchea in the first 4 months of 2020 amounted to US $3 billion 130 million, up 1.67% from the same period last year. Overseas orders grew rapidly in the early 2020 before the new crown epidemic. However, due to the impact of the epidemic, the export volume will decline in the next few months.

　 Vietnam: exports of textiles and clothing have dropped sharply, and the whole year is expected to fall more than 10%.

In April this year, Vietnam's export data began to show the impact of the epidemic. Although many garment factories converted masks and medical protective clothing, the export volume of textile and clothing in April was only 1 billion 600 million US dollars, down 31% from the same period last year, and the export of yarn decreased from 152 thousand tons in March to 95 thousand tons, a decrease of 38%. The total export volume of textiles and clothing decreased by 8.8% in the 1-4 months.