China cotton textile industry operation analysis in 2019
——Mr. Ye Jianchun, from China Cotton Textile Association

 

Mr. Ye Jianchun divides his report into 4 parts. 

1. Cotton textile feedstock, including Cotton textile feedstock consumption, Market price of feedstock—cotton, PSF and VSF. 

2. Import & Export, including Import and export overview, cotton imports rise largely, cotton yarn import increases while export decreases, cotton fabric export inches down 

3. Operation quality and efficiency. Since Oct 2018, the market was weakened by Sino-US trade frictions. Long orders for mills decreased, while product inventory kept accumulating, and production slowed down. Differentiated products require higher production technology, with higher added value, so sales are relatively stable and the production is mainly based on orders. Output of yarn and fabric decreased by 0.32% and 2.15% year on year respectively in Jan-Apr, according to CCTA. 

4. Forecast contains 4 parts, , yarn and fabric output has been stable with slightly fluctuations, and the production is expected to be stable in 2019; There is still big uncertainty. It is particularly important to textile industry to further expand market shares both domestic and overseas, especially for emerging developing countries and African countries; Non-cotton fiber and cotton boost each other. In the backdrop of environmental protection upgrade on viscose, the output is unlikely to surge. Demand for cotton is obvious, and the market is still sensitive to cotton regulation policy in 2019. The release of regulation policy in advance is very important to stabilizing market mood; Investment growth continues slowing down. According to the investigation, several companies prefer to wait on sidelines in 2019, as investing mentality is impacted by the macro economy and capitals availability.