Market Direction: From The Operating Rate Of Textile Enterprises In June To 89.6%, The Current Market Has Declined Slightly Month On Month

With the rapid rebound of Zheng Mian's price, the spinning spot profit continued to decline, and the operating rate also decreased. According to the estimation based on the consumption ratio of spinning raw materials 1:1.1, processing expenses and miscellaneous expenses totaling 5500 yuan/ton, the profit of 32 cotton carding yarns has continued to decline since April. At the beginning of May, the spot profit of spinning was basically zero, and fell again in June. At present, the spinning profit is differentiated, the profit of high count yarn is fair, the profit of medium and low count yarn is low, and the reduction of spinning profit has a great impact on the willingness of textile enterprises to start up.

In May and June, the startup rate of textile enterprises declined month on month. At the beginning of June, the startup rate of textile enterprises in China was 89.6%, down 1.44 percentage points month on month. It is expected that with the decline of textile profits, the startup rate will continue to decline, and rebound in August and September to meet the new peak season of textile consumption.

The production and sales rate of yarn and cloth of textile enterprises continued to decline, and the inventory level rose month on month. In February 2023, the first month after the Spring Festival, the production and sales rate of textile enterprises reached the highest value in the year, and then began to gradually decline. By the beginning of June, the production and sales rate of textile enterprises was 94.8%, 12.07 percentage points lower than the peak in February, and the production and sales rate of cloth was 95.6%, 6.51 percentage points lower than the peak in February. The production and sales rate continued to decline.

At the beginning of June, the number of yarn inventory days was 21.5 days, and the number of cloth inventory days was 42 days, with a slight increase compared with the previous month, but the number of yarn inventory was still relatively low, indicating that textile enterprises still have a low willingness to replenish the inventory of raw materials. However, the number of days in stock has increased on a month on month basis, and yarn and cloth are already in a similar stock trend. It is expected that this phenomenon will continue in January and February. It is expected that the production and sales of yarn and cloth will pick up in August and September, before the arrival of the traditional peak consumption season.