In May, the bad weather in the domestic cotton area, coupled with the decrease in the cotton planting area, the market expects the New Year's cotton production, and the domestic cotton price has risen and reached a new annual high. Although the textile industry has entered the traditional off-season, the probability of opening is still high, and enterprises purchase raw materials on a low amount. According to the survey of more than 90 designated textile factories nationwide by the China Cotton early warning system, yarn production has increased slightly this month, cloth production has declined, and raw material inventories and finished product inventories have increased.

First, yarn production increased

This month, the probability of textile factory opening remains high, most of which are more than 80%, and yarn production has increased from the previous month. Some varieties, especially combed yarn, are still selling well, but with the sharp rise in raw material costs, spinning profit margins are compressed, and some varieties have certain losses.

This month's yarn production increased by 1.9% compared with last month, 5.3% higher than last year, of which: pure cotton yarn accounted for 54.5%, down 0.7 percentage points from last month; Blended yarn and chemical fiber yarn accounted for 45.5%, up 0.7 percentage points from the previous month.

Cloth production fell 1.5% month-on-month, 3.7% higher than the same period last year, of which: pure cotton accounted for 0.8 percentage points lower than the previous month. Yarn sales rate was 72%, down 2 percentage points from the previous month.

Yarn inventory in textile mills was 20.67 days in the month, an increase of 0.49 days from the previous month. Grey fabric inventory 38.41 days, an increase of 0.66 days from the previous month.

Second, the monthly average price of cotton yarn inside and outside rose

The price of cotton yarn inside and outside this month rose slightly, the average price of 32 pure cotton yarn in May was 23,419 yuan/ton, up 283 yuan from the previous month, an increase of 1.22%, down 5393 yuan from the same period last year, a decline of 18.7%; The average price of imported 32 pure cotton yarn in May was 23,770 yuan/ton, up 172 yuan from the previous month, up 0.73%, and down 5566 yuan from the same period last year, down 19%.

Third, the inventory of raw materials of enterprises increased slightly

Since May, the short-term orders of textile factories are still sufficient, the probability of opening is basically stable, the trend of cotton prices is strong in the month, enterprises are more than the right amount of supply, and the overall stock of raw materials has increased. As of May 31, the cotton industry inventory in the textile factory was 854,400 tons, an increase of 148,800 tons from the end of last month, an increase of 264,300 tons year-on-year. Among them: 28% enterprises reduce cotton inventory, 37% increase inventory, 35% basically unchanged.

In the month, the proportion of Xinjiang cotton used by textile mills decreased, the proportion of local cotton decreased, and the proportion of imported cotton increased: the use of Xinjiang cotton in textile mills accounted for 86.34% of the total cotton consumption, a decrease of 1.35 percentage points compared with the previous month, a decrease of 1.92 percentage points year-on-year, of which: the proportion of Xinjiang cotton in reserve was 5.2%, and the proportion of Xinjiang cotton in 2022/23 was 59.2%. The proportion of cotton produced by textile mills using land was 4.05%, down 0.11 percentage points from the previous month. Among them: the proportion of cotton produced in reserve land is 5.7%, and the proportion of cotton produced in 2022/23 is 68.3%. The proportion of imported cotton used by textile mills was 9.61%, an increase of 1.41 percentage points over the previous month and 1.49 percentage points over the same period last year.

In April and June, the start-up of cotton mills decreased significantly

Entering the off-season market in June, the market is highlighted, pure cotton yarn and the downstream cotton spinning and weaving, printing and dyeing industry new single support is weak, the level of construction is shaking down, some of the construction in Guangdong region is as low as 2-3 percent, and pure cotton yarn construction has a slight decline under the constraints of high cost and low demand. During the Dragon Boat Festival, some enterprises parked for a short holiday, and the industry's start-up level declined again. As of June 25, the national cotton spinning and weaving started 47.06%, down 0.62% from June 15; Printing and dyeing started 63.64%, down 1.05% from June 15; The operating rate of pure cotton yarn is 72.41%, down 1.85% from June 15.