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China cotton textile company monthly

China cotton textile company monthly Source: china-cotton
Date: 30-04-2013
Visits: 318
Very Poor

Cotton reserve purchase of 2012/13 season closed in March. Yarn and cloth companies recieved more orders and had better sales, especiall the pure cotton product; therefore, raw material purchase and stock increased accordingly, operation rate and production also improved, better than the same timefram last year.

1.Raw material purchase and stock

1.1 Increase in raw material purchase

More orders brought raw material purchase volume. In March, the overall growth of different raw material increased by 13%, among which cotton increased and chemical fiber decreased.

In aspect of cotton purchase: in domestic market, more than 90% of new arrival entered state reserve, leaving very limited high quality cotton in the market, and textiles focus on reserve cotton release; while in aspect of import cotton, delivery of certain sliding duty quotas encouraged import cotton largely over the month. The statistics of surveyed companies showed that, purchase of raw cotton increased by 17.2% over the month, among which import cotton doubled.

In aspect of chemical fiber purchase: dual impacts from decreased upstream material and decline of downstream demand caused chemical fiber price reducing largely, especially the polyester and viscose yarn was down by more than 1,000 Yuan per ton, while increase was seen by new type fibers. According to survey, chemical purchase decreased by 16%, while other new type fiber increased by 36% over the month.

1.2 increase in raw material inventory

The new orders brough up raw material stock, which remained at around 25 days in average, 3 days more than last month.

According to the survey, raw material stock in March increased by 6.7% Y/Y, and 5.8% up over the month. Among which raw cotton increase was 3% Y/Y, and 7.5% up over the month. The import cotton share increased by 9.5% Y/Y, and 1.7% up over the month, chemical fiber stock increased Y/Y, and decreased over the month. 

2.Production and finished product stock

2.1 production increased over the month, though increase rate slowed down

After Spring Festival, both operation rate and production increased. According to survey, yarn output in March increased by 14.8%, slightly less Y/Y. During the first quarter of the year, yarn output was more than the same timeframe last year, though increase rate slowed down.

Cloth production in March increased by 8.3%, while decreased Y/Y, among which pure cotton cloth increased continually. For the first quater, cloth output increased by 2.7% Y/Y, also slowed down.

2.2 Yarn stock increased slightly, gray fabric decreased

In March, production increased with better sales, yarn inventory increased slightly while gray fabric stock decreased. According to the survey, yarn stock increased by 4.2%, mainly the cotton blends yarn and chemical yarn stocks.

As for sales, pure cotton yarn had better sales and raising price, especially for high-end product. Influenced by downstream demand and raw material price, chemical fiber had sluggish sales, the stock of which increased by 32% over the month.

The weaving company operation rate was lower than yarn company, the good sale of pure cotton product brough down the gray cloth stock. According to the survey, cloth stock decreased by 5% over the month, among which pure cotton cloth was down by more than 20%, while chemical cloth inventory increased.

3.Sales

The replenishment from downstream clothing company improved domestic yarn and cloth sales in March, price increased for the on-season product and middle/high end product, while low end product cut the price off.

According to survey, 32s cotton yarn price increased slightly over the month, while 2.4% down Y/Y. The average yarn counts increased.

As for yarn variety, among pure cotton yarn, product with the major allocation of cotton under grade four (included) had clear decline in price, while that with cotton above 3 grade increased, the grade 3 cotton product was stable; common product of polyester and viscose decreased, the new spinning technique or material applied product price increased. As for cloth, graw cloth with middle or high counts yarn increased in price, while blends product decreased.
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