Judging from the feedback from foreign trade companies, clothing and weaving enterprises in coastal areas such as Guangdong, Fujian, Jiangsu and Zhejiang, although the new orders of the textile and clothing industry during the “Golden Nine and Silver Ten” periods are less than expected, export and domestic demand orders have indeed recovered to varying degrees, especially export traceability The signs of orders bottoming out are slightly obvious and the operating rates of knitting and weaving manufacturers are slowly increasing.
What is puzzling is that since September, some small and medium-sized cotton spinning enterprises have reported that the growth of cotton yarn transactions has not been obvious, and the “destocking” effect has not been significant. Some manufacturers even said that the yarn inventory rate has increased instead. The “Golden Nine and Silver Ten” dividends of the textile and clothing industry It does not seem to have led the cotton textile industry out of its predicament, and it is more difficult to break through the industrial chain.
Why did the recovery in the terminal market stage caused by the “Golden Nine and Silver Ten” have less than expected impact on small and medium-sized textile enterprises? The reasons for industry analysis are as follows: First, cotton yarn traders with low cotton yarn costs and high financial pressure have recently cut prices to sell goods and actively withdraw funds. This has a greater negative impact on cotton yarn production enterprises, and the positive effects of the “Golden Nine and Silver Ten” have been weakened.
Second, my country’s cotton yarn imports have continued to increase in recent months, and imported yarns have become increasingly prominent as a substitute for domestic yarns. According to customs statistics, my country imported 159,300 tons of cotton yarn in July 2023, a month-on-month increase of 15.17%, and a year-on-year increase of 144.57%; cotton yarn imports in August were approximately 190,000 tons, a year-on-year increase of 120,000 tons, an increase of 155.8%; a month-on-month increase of 30,000 tons , an increase of 18.75%. A large amount of cotton yarn produced in Vietnam, India, Pakistan and other places has poured into the Chinese market, increasing the substitution of cotton yarn with 40S and below count, and having a greater impact on small and medium-sized textile enterprises that produce cotton yarn below 40S.
Third, the current small and medium-sized textile enterprises not only have low spot profits, but also buy raw materials as they are used. In addition, the abundant spot procurement channels have led to a decrease in the stability and consistency of cotton yarn, and terminal procurement is relatively cautious. Compared with cotton spinning enterprises above designated size, the cotton inventory of small factories is usually 15-20 days, which requires higher production and technical capabilities of textile enterprises. There are fluctuations in cotton yarn CV value, strength and other indicators. Fabric factories and middlemen are cautious in purchasing, and small quantities The phenomenon of multiple batches and one-on-one discussions is very common.
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