Industrial Inventory Increases Month On Month, Yarn And Cloth Production And Sales Rate Continues To Rise

1. At the beginning of August, the National Cotton Industrial inventory usage days were about 36.9 days

According to the sampling survey conducted by the national cotton market monitoring system, as of the beginning of August, the average cotton inventory days of the sampled enterprises were about 36.9 days (including the quantity of imported cotton), which increased by 4.2 days month on month and 7.4 days on year. It is estimated that the National Cotton Industrial inventory is about 710000 tons, with a month on month increase of 12.8% and a year-on-year increase of 9.8% (as shown in Table 1 and figure 1). The inventory status of cotton industry in the main provinces of China is different, and the days of cotton industry inventory in Fujian, Hebei and Hubei are relatively large (as shown in Figure 2).

2、 The willingness to purchase raw materials is stable, and the willingness of cotton blending is strong

According to the survey of purchasing intention, at the beginning of August, 59.5% of the enterprises were ready to purchase cotton, which decreased by 5% month on month and increased by 10.7% year-on-year; 34.2% were holding a wait-and-see attitude, which was flat on a month on month basis, with a year-on-year decrease of 10.9%; enterprises not planning to purchase cotton accounted for 6.3%, up 5% month on month and 0.2% year-on-year (as shown in Figure 3).

At the beginning of August, 96.2% of the sampling enterprises planned to stabilize the cotton blending ratio, increasing by 1.5% on a month on month basis and 4.7% on a year-on-year basis; 1.3% of the enterprises planned to increase the cotton blending ratio, with a decrease of 1.4% on a month on month basis and a year-on-year balance; 2.5% of the enterprises planned to reduce the cotton blending ratio, with a decrease of 0.1% on a month on month basis and a decrease of 4.8% on a year-on-year basis (as shown in Figure 4).

3. The capital turnover and employment situation of the enterprise is worse than that of last month

According to the capital turnover survey, at the beginning of August, enterprises with good capital turnover accounted for 50.6%, with a decrease of 3.9 percentage points on a month on month basis and a decrease of 1.8 percentage points on a year-on-year basis; those with poor capital turnover accounted for 36.7%, up 2.9 percentage points on a month on month basis and 2.6 percentage points on a year-on-year basis; and 12.7% on a year-on-year basis, with a year-on-year decrease of 0.8 percentage points (as shown in Figure 5).

At the beginning of August, 62% of the sample enterprises had normal employment, with a month on month decrease of 5.5% and a year-on-year decrease of 0.2%; 30.4% of the enterprises had poor employment situation, with a month on month increase of 3.1 percentage points and a year-on-year increase of 1.1 percentage points; 7.6% of the enterprises were seriously short of workers, with a month on month increase of 2.4% and a year-on-year decrease of 0.9 percentage points (as shown in Figure 6).

Fourth, yarn, cloth production and sales rate continued to rise, inventory decreased

At the beginning of August, the yarn production and sales rate of the sampled enterprises was 90.5%, with a month on month increase of 0.7 percentage points, a year-on-year decrease of 2.1 percentage points, and a decrease of 3.2 percentage points compared with the average level of the same period in recent three years; the inventory was 23.5 days, and the sales volume was reduced by 1 day month on month, 5.7 days lower than the average level of the same period in recent three years, 1.7 days higher than the average level of the same period in recent three years (as shown in Figures 7 and 8). The production and sales rate of cloth was 88.2%, up 2 percentage points month on month, 1.2 percentage points lower than the average level of the same period in recent three years, 4.3 percentage points lower than the average level of the same period in recent three years; inventory was 38.8 days, sales volume decreased by 3.7 days month on month, decreased by 12.2 days, 6.8 days lower than the average level of the same period in recent three years (as shown in Figures 7 and 9).