It is understood that at the end of January, some small textile and clothing companies in Henan, Jiangsu, Anhui and other places have shut down their operations for holidays. Some large and medium-sized cotton textile companies have also issued holiday notices. A few companies still maintain a high operating rate. The time of vacation has not yet been determined.
Currently, inquiries, purchases, and shipments of lint cotton in Xinjiang’s regulated inventory have declined sharply or even stagnated, and textile companies’ enthusiasm for purchasing Xinjiang cotton from mainland warehouses and bonded or customs-cleared foreign cotton at ports has also cooled. First, as the Spring Festival approaches, some cotton warehouses are under increasing pressure on epidemic prevention and control, fire protection, security inspections, etc., plus employees are on rotation, and the loading and unloading capacity of the warehouse has been reduced; second, textile companies are generally busy settling wages, bonuses, and settling parts purchases and raw material payments. , water and electricity bills, etc., cash flow expenditures are large, and the order situation in the first and second quarters of 2021 is still unclear (very cautious about large, medium and long-term orders). Textile companies are not strong in hoarding raw materials and avoiding rising cotton prices.
A medium-sized yarn mill in Jiangsu said that except for orders for 50S and 60S cotton yarns until mid-March, 80% of orders for 40S and below count cotton yarns are in time for delivery before the Spring Festival. If the COVID-19 prevention and control situation further improves during the Spring Festival holiday, and domestic and foreign markets and news remain stable, it is initially planned to resume work and production before February 20. Even if there are insufficient short-term orders for OE yarn and C16S-C40S cotton yarn, there is no plan to delay the resumption of work. Since there are fewer and fewer skilled and experienced technical workers in spinning, delaying the start of production will result in a large loss of workers, which will outweigh the gains. As of the Spring Festival, the enterprise’s cotton yarn inventory is relatively low, with only about a week’s output, and the enterprise also has plans to accumulate inventory appropriately.
At present, the COVID-19 epidemic is still spreading in many places. Stabilizing sentiment, promoting employment, and boosting the economy are still top priorities. As a labor-intensive industry, cotton textile companies have a duty to do so. Since 2020, bank credit support has been strong and interest rates have been significantly lower than in previous years. Cotton spinning companies have relatively sufficient cash flow and strong risk resistance.
According to the survey, affected by the increase in holidays for weaving and printing and dyeing factories in Guangdong, Jiangsu, Zhejiang, Shandong and other coastal areas and the closure of various light textile markets, cotton yarn shipments in Shandong, Xinjiang, Henan and other places have continued to slow down, and finished product inventories are common A slight recovery. Textile companies are mostly optimistic about the cotton textile market in February and March 2021. They believe that the global epidemic has reached an “inflection point” due to the strong “blockade” of various countries and the widespread vaccination of the new crown vaccine. The monetary policies of central banks of various countries continue to be loose and stable. The effects of improving the economy, promoting consumption, and boosting the economy are gradually emerging, and the textile and clothing market is expected to usher in opportunities for rebound and growth. </p