Cotton Textile Market Operating Rate Generally Declined

Ye Jianchun, vice president of the China Cotton Textile Industry Association, shared the more than 60 spinning and weaving enterprises visited by the association in 2019 at the TTEB Cotton Textile Forum in 2019. The opening rate is low. The order volume of an enterprise in Guangdong is only 5% of the same period in the previous year. At the same time, the consumption of electricity for a knitting mill is 30% of that of the same period last year. In May, the output of gauze decreased by 2.25% and 4% respectively, and the sales volume decreased by 3.93% and 2.13% respectively. Some large enterprises have arranged for the rest of the month, but under the pressure of funds, the workers' wages have been cut down.

Pakistan cotton yarn impacted on the low spin yarn market, and large enterprises also adjusted their layout to reduce the impact of Sino US trade friction. At present, China's orders are spanferred to Southeast Asian countries, and it is difficult to spanfer to China again. In the process of placing orders, international brand manufacturers set up requirements for Chinese manufacturers to set up factories overseas.

In addition, trade friction between China and the United States has led to a rapid decline in market confidence. Zheng cotton index has declined rapidly, leading to the industry chain dare not order, supply exceeds demand. At the same time, it also led to cautious wait-and-see for foreign customers and the pressure on Chinese manufacturers. Enterprises wait for the government's regulatory signals, hoping that the state will turn in a certain amount of cotton.