资讯 1 10 英文网 283 Cotton News 604358 Textile enterprises have entered a critical period for survival 2022-07-14 15:47:42 shenhe
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Textile enterprises have entered a critical period for survival
2022-07-14

Since the end of June, Zhengzhou cotton main force CF2209 contract has fallen continuously, but it is surprising that domestic cotton textile enterprises and middlemen inquiry and purchase have not increased with the drop of cotton spot and futures, sales and signing progress of 2021/22 Xinjiang cotton have not increased rapidly, and basis price and resting order are mainly the main modes. A cotton trader in Xiangyang, Hubei said that the purchase of goods by downstream customers not only did not increase significantly, but declined and shrank, and the mood of wait-and-see was very strong, and the operation of buying high and selling low by cotton companies increased. 

 

Some small and medium-sized spinning mills judged that in more than two months, 2022/23 new cotton will be launched, while the current 2021/22 cotton sales have fallen sharply year-on-year. Xinjiang cotton supply is very sufficient, and the Federal Reserve has repeatedly raised interest rates aggressively to control inflation, according to the estimate of the China Chamber of Commerce for Import and Export of Textiles, in the first half of the year, the scale of China’s textile and apparel order transfer was about 6 billion US dollars, of which the cotton textile order transfer scale was about 1 billion US dollars, and the clothing transfer scale was about 5 billion US dollars;  and the order transfer may be accelerating in the second half of the year, and the transfer scale is about 10 billion US dollars, of which the cotton textile order transfer is about 2 billion US dollars, and the clothing transfer scale is about 8 billion US dollars. 

 

On the whole, with the sharp decline of Zhengzhou cotton, the profit of cotton yarn and grey cloth of cotton textile enterprises has improved compared with that in May/June (especially some small and medium-sized manufacturers that buy raw materials as they are used and purchase on demand), but overstock of cotton yarn and cloth, tight operating funds and a serious shortage of orders have forced companies to take measures such as limiting production, suspending production, and even taking short-term holidays. A weaving company in Zhejiang said that the current hope is that domestic demand orders in the autumn and winter of 2022 and orders for Christmas and Easter in Western countries will come as soon as possible, and the company can insist on not reducing production, layoffs, or downtime. The period in July, August and September is a critical period for the survival of some cotton textile and garment enterprises.