Understand The Cotton Textile Industry Demand Continued To Weaken In The Second Half Of The Year

2021/10/27 0:57:00 35

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In the first half of the year, the overall order of cotton textile industry was strong, but in the second half of the year, the demand continued to weaken, from the order point of view, the demand was overdrawn in advance.

Now it is the traditional peak season, clothing and textile enterprises generally reflect the shortage of orders, a sharp decline compared with previous years, and the characteristics of recession in peak season are obvious.

According to statistics, the operating rate of textile enterprises has dropped sharply recently, from 60% to 50%, reaching the lowest level in six years. The inventory of finished products of downstream enterprises also increased significantly. The inventory of cotton yarn, grey cloth and substitutes such as viscose and polyester rose to the highest level in recent six years. The weakness of downstream demand can be seen.

To sum up, although cotton prices are still affected by the game between cotton farmers and ginners in the short term, the upward space in the medium term may be limited, so investors should pay attention to the risks.