In the first half of 2022, China's cotton textile industry came under pressure

Since the beginning of this year, repeated outbreaks of COVID-19, escalation of the situation between Russia and Ukraine, sharp fluctuations in commodity prices and high inflation have posed multiple risks to global economic growth. Driven by the effects of policies to stabilize growth, the domestic macro economy operated smoothly in the first two months. From March to April, the epidemic continued to spread in China, industrial and supply chains were not functioning smoothly, and consumer demand in the textile market was sluggish. Since May, with the overall improvement of the epidemic prevention and control situation in China, the effects of various policies to stabilize growth have gradually emerged, and the resumption of work and production of enterprises has been progressing in an orderly manner. The revenue and export have maintained a year-on-year growth trend, showing the strong development resilience and anti-risk ability of the cotton and textile industry.

Orderly progress of production

China Cotton Textile ASSOCIATION tracking data shows that in the first half of this year tracking enterprises spinning and weaving equipment utilization rate compared with last year decreased significantly. On the whole, the equipment utilization rate of cluster enterprises, mainly small and medium-sized enterprises, is about 70%. The equipment utilization rate of key enterprises is better than that of cluster enterprises, and the utilization rate of spinning equipment is higher than that of weaving. Tracking key enterprises yarn output decreased by 2.4% year on year, cloth output is relatively better than yarn output, and the base of cloth output is lower than yarn output in the same period last year. The cumulative output of yarn and cloth of cluster enterprises decreased by 2.9% and 2.4% respectively. The terminal market continued to be quiet, downstream orders decreased, and the market wait-and-see mentality was strong. The sales volume of yarn and cloth shrank, which decreased by 4.9% and 1.2% respectively. The inventory of yarn and cloth continues to increase, and the inventory level of most enterprises is at a high level, with some enterprises' inventory of yarn and cloth exceeding two months.