In June, the cotton textile prosperity index was 48.94, the decline narrowed for two consecutive months. This month, the off-season effect of the domestic textile market has gradually emerged, and the pressure on textile enterprises’ orders has increased. In terms of raw materials, in order to reduce the pressure on funds and inventory, procurement is mainly on-the-go purchase; in terms of production, the operating rate increased slightly this month, and the production of yarn increased from the previous month; in terms of product sales and inventory, conventional products were better than refined products. Spinning companies sell carded cotton products at low prices, hoping to get the funds back as soon as possible, but there are fewer orders, production exceeds sales, and product inventory is still increasing.

Domestically, on June 30, the National Food and Strategic Reserves Administration and the Ministry of Finance formally issued an announcement on the rotation policy. When the cotton spot price index in the domestic market is below 11,500 yuan/ton, trading will be suspended from the next working day, which strongly supported domestic cotton prices. According to a survey conducted by the China Cotton Textile Association (CCTA), more than 70% of the interviewed enterprises believe this is beneficial to textile enterprises.

 

In terms of foreign trade, according to data from the General Administration of Customs on July 14, China ’s overall foreign trade import and export performance in the first half of the year was better than expected. In the first half of this year, the country’s total textile and apparel exports totaled USD 125.19 billion, a year-on-year increase of 3.16% (in RMB terms, an increase of 6.75% year-on-year), and the industry’s overall exports resumed positive growth. Among them, the cumulative export of textiles from January to June was USD 74.103 billion, a year-on-year increase of 27.81% (in RMB, a year-on-year increase of 32.37%); the cumulative export of apparel was USD 51.08 billion, a year-on-year decrease of 19.39% (in RMB, a year-on-year decrease of 16.67%). The main reason for the growth of textile exports is still driven by the export of anti-pandemic materials. Textiles such as clothing and home textiles are under greater pressure due to the weak demand in foreign consumer markets, and China ’s export-oriented textile enterprises are struggling.