In early January 2020, China Cotton Network launched the “Textile Market Survey Questionnaire for Early 2020”. As of mid-January, nearly a hundred survey results had been received. From the questionnaire, we learned that the textile market demand has rebounded slightly recently, and textile companies have replenished a small amount of raw materials before the Spring Festival. The market has different views on the next trend of the textile market, and half of the companies are cautiously optimistic.
The companies participating in this survey cover 15 provinces and regions including Shandong, Henan, and Jiangsu. In the scale of 30,000 spindles to 200,000 spindles.
From the survey, there is a big gap in the startup and operation of textile enterprises. Good, a small number of companies have low operating rates. The survey data shows that 50% of the companies participating in the survey have an operating rate of 80%-100%, 27% of the companies have an operating rate of 60%-80%, and more than 10% of the companies have an operating rate of 40-60%; the regions where the companies participating in the survey are located The overall operating rate is 60%-80%, accounting for 43%, and the operating rate is 80%-100%, accounting for 39%. The operating rate is 40%-60%, accounting for 13%.
The textile market was in a downturn in 2019, the market reshuffle intensified, and some companies closed down. According to the estimates of participating companies in the survey, the proportion of companies in their regions that will be shut down after the Spring Festival is mostly 10%, 20%, or 30%.
The survey shows that textile companies’ raw material inventory and raw material procurement rhythm are cautious. As of mid-January, 34% of enterprises maintained raw material inventory for 15-30 days, 28% of enterprises maintained raw material inventory for 1-2 months, and 25% of enterprises maintained raw material inventory for 7-15 days, maintaining raw material inventory for more than 2 months. There are fewer companies; 47% of companies choose to stock a small amount of raw materials and start operations after the Spring Festival. 27% of companies stock raw materials at the same level as previous years and do not plan to stock up. 25% of companies buy as they are used.
Most of the companies participating in the survey controlled their finished product inventory within one month, and the finished products were processed pure Cotton yarn is the main product, and the sales of conventional yarn with carded count of 32-40 are relatively smooth. Data shows that 37% and 34% of companies have inventory of finished goods within 15-30 days and 7-15 days respectively. 17% are in stock for more than a month, and only 10% are out of stock.
The survey shows that the recovery trend of textile market demand is not yet clear. According to the current situation of receiving orders, 41% of companies believe that demand has rebounded slightly, with limited intensity, demand is still declining, 23% have no obvious signs of recovery, only 9% have seen a significant improvement in demand, and 26% of companies are still confused. state.
The survey shows that the main prominent problem currently faced by textile companies in their operations is insufficient orders. Enterprises are still troubled by rising labor costs, difficulty in recruiting workers, environmental protection, competition from imported cotton yarn, and a series of other issues. The bankrupt enterprises have been transformed and upgraded.
The companies participating in the survey have different views on the next development direction of the textile industry. More than 50% of companies are cautiously optimistic, believing that the most difficult period has passed and the industry will grow at a low speed in the future. 27% of companies are pessimistic, believing that the industry will continue to decline and development will slow down. Companies that are quite pessimistic and optimistic are in the minority. </p
