Significant Overcapacity Industry Will Be Reshuffled? Nearly 30% Loss, Cotton Textile Enterprises Actively Self-help
Jul 29, 2024
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According to the China Textile Federation statistics, 1 to 5 months of this year, the national cotton textile industry loss rate of 26.5%, chemical fibre clothing slightly increased.
At present, the cotton textile enterprise production situation is worse has been an indisputable fact, the machine rate continues to be adjusted downward, profits continue to decline, especially inland textile enterprises to survive more difficult conditions. However, in the national textile cluster research found that there are still some textile enterprises plan to continue to expand the scale of production, such a situation can not help but worry.
At present, the domestic spindle size of 110 million spindles, the textile industry generally believe that this scale has been in a state of serious saturation, the market is very strong involution. A t
xtile source said that the pressure of competition for business survival is now increasing, part of the region's corporate operating rate has fallen to about 3 into the main reason for this situation is the spinning capacity is too large and consumption decline.
The number of spindles in Xinjiang 24.5 million spindles, under the cost advantage, spinning enterprises have achieved benign operation, the future scale of production capacity will be further expanded, Xinjiang cotton in situ conversion rate will be further enhanced. In addition, in recent years, China's clothing exports have been declining, with Vietnam and other countries on China's textile and clothing market is more and more substitution, China's export market situation is not optimistic. For mainland enterprises, the lack of preferential policies under the premise that the distance from the cotton resources are also farther away, the advantages of spinning cotton yarn in the obvious decline, with the quality of the yarn in Xinjiang to improve the quality of the future mainland textile enterprises will be more pressure, saturated market in the future will inevitably go through the elimination of the fittest.
From Henan, Hubei, Jiangsu, Shandong and other places part of the cotton mill survey, although a few manufacturers above the size of the feedback since late June has been a small number of 2024 autumn and winter domestic sales orders under the 2025 spring orders also have a version of the test samples, but the overall cotton spinning and the end consumer market orders are still in the 'yellow and yellow' period of limited production, Production limitations, production cuts and production of blended yarns, differentiated yarns are common.
Xiangyang, Hubei, a medium-sized textile enterprises, said that although June and July polyester-cotton yarn (including CVC) profits to be better than cotton yarn (most of the mills do not lose money or a slight profit), but the market is in the supply and demand 'saturated' state, the last half-month inquiry, shipments slowed down significantly, the phenomenon of accumulation of storage is gradually aggravated, and was forced to use the reduction of shifts, intervals between holidays, staggered peak production And other ways to cope.
From the survey, spinning enterprises are currently 'self-help' measures are as follows: on the one hand, through the reduction of cotton grade and optimisation of labour structure, staggered power (control costs) to reduce the cost of spinning. Such as high with C32S, C40S cotton from 100% Xinjiang cotton adjusted to 50% real estate cotton, 50% Xinjiang cotton; low-count air-flow spinning yarn, low-count ring spinning yarn in the infertile seed cotton accounted for a larger proportion. In addition, some cotton textile mills take the initiative to adapt to the customer, not only short single, small single to not reject, and special needs of customers to take the yarn 'custom production', so that the production follows the order to go, the enterprise follows the market. Some of the years of partners to give part of the payment on credit, 1 ~ 3 months payment and other concessions

