Monthly Report On China'S Cotton Situation In May 2020 (Supply And Demand Balance Sheet)

In May, the national two sessions were successfully held. The domestic epidemic continued to stabilize steadily, the economic operation continued to recover, production demand continued to improve, and domestic cotton prices rose steadily. International cotton prices fluctuated from the continuing epidemic and the instability of Sino US relations. By the end of May, cotton sowing was basically completed in the whole country, and cotton conditions were suitable for cotton growth. Textile orders for foreign trade have picked up, demand for raw materials has increased, and business inventories have fallen. The overall export volume of textiles and clothing has increased rapidly, and the gap between textiles and clothing has been further expanded. Textile exports continue to maintain strong growth under the guidance of epidemic prevention materials, and the trend of garment export is unchanged.

First, the national sowing is basically completed, growing better than last year.

In May, according to the China Cotton Association survey, the total area of cotton planting in the whole country was 46 million 156 thousand and 300 mu, a decrease of 4.15% compared with that of the previous period. During the month, the meteorological conditions of most cotton regions in the country were normal, suitable for cotton seedling growth, and the cotton seeding rate was 99.6% at the end of 31, which was 0.14 percentage points lower than that of the same month. 50.2% cotton seedlings at 6-8 true leaf periods, an increase of 27.86 percentage points compared with the same period last year. The occurrence of pests and diseases is generally lighter, accounting for more than 8 percent. Among the surveyed farmers, 44% of the farmers were considered to have better seedlings, an increase of 29.82 percentage points over the same period last year.

Two, domestic and foreign cotton prices fluctuate, domestic cotton prices exceed cotton.

In May, China resumed industry and resumed production and resumed business to push forward the market. The national economy gradually recovered, and domestic cotton prices rose steadily. Foreign epidemic situation has not yet been fully controlled, Sino US relations are complex and changeable, and international cotton prices fluctuate frequently. At the end of the month, China's cotton price index (CCIndex3128B) was 11807 yuan / ton, up 306 yuan from the end of last month, and the monthly average price was 11644 yuan / ton, up 248 yuan, down 3425 yuan compared with the same period last year. The price index of China's cotton imports FCIndexM 67.78 cents per month, rising 2.64 cents, 66.26 cents / pound at the end of the month, down from 2.32 cents / pound at the end of last month, and 11522 yuan / ton under 1% tariff, which is lower than the domestic stock spot 285 yuan in the same period, and the fluctuation of cotton price difference between inside and outside is 690 yuan / ton.

Three, business inventories decrease.

In May, textile foreign trade orders rebounded, business demand for raw materials increased, and business inventories dropped sharply from last month. At the end of this month, the total inventory of cotton business in China was about 3 million 773 thousand and 800 tons, a decrease of 12.2%, an increase of 6.96% over the same period last year. Due to the increase of Xinjiang railway freight rates, all enterprises have tightened up the shipment of cotton 15 days ago, and the output volume of the exported cotton has increased significantly, the highest monthly volume since February 2015. According to statistics, Xinjiang cotton specialized warehouses have transported 592 thousand and 300 tons, and the ring ratio has increased by 86 thousand and 700 tons, up from 270 thousand and 400 tons in the same period last year. Affected by this, the turnover of commodity cotton turnover in the mainland continues to increase.

Four, a slight increase in demand for raw materials, textile exports increased significantly

With the gradual resumption of overseas market, foreign trade sales have improved slightly, but based on financial pressure, the rate of start-up is still not high, and the output of textile products has declined. Yarn production decreased by 1.2%, down 6.8% compared with the same period last year, and cloth production decreased by 1.2%, down 5.9% compared with the same period last year. The operating rate of enterprises was relatively low, raw materials were purchased on demand, raw materials inventories increased slightly from the previous month. As at the end of May, the cotton stocks of textile enterprises were 679 thousand and 500 tons, up 6 thousand and 100 tons from the end of last month, representing a decrease of 72 thousand and 100 tons compared with the same period last year.

In May, textile exports continued to maintain strong growth under the guidance of epidemic prevention materials. According to customs data, China's textile and apparel exports amounted to 29 billion 560 million US dollars, up 26.7% over the same period last year, of which 20 billion 650 million US dollars in textile exports increased by 79.1%, while clothing exports 8 billion 910 million US dollars, down 24.5%. 1-5 months, textile and apparel exports totaled 96 billion 160 million US dollars, down 1.2% compared with the same period last year (the total export volume of the national goods trade decreased by 7.7%), the decrease was 8.8 percentage points lower than that of the previous period, of which the export of textile yarn, fabrics and products was 57 billion 950 million US dollars, an increase of 21.3%, a 18.4 percentage point increase over the previous period, and the export of clothing and clothing accessories 38 billion 210 million US dollars, a decrease of 22.8%, a slight increase of 0.5 percentage points over the previous period. 。