Observation: Cotton Textile Terminal Is Expected To Take The Lead In Getting Out Of The "Mire" Of The Epidemic.

At present, the domestic epidemic has achieved a phased victory. Enterprises resumed their work and resumed production continuously. As of mid April, the recovery rate of large and medium-sized textile and garment enterprises generally reached over 80%. (Zhejiang, Jiangsu, Shandong and other coastal areas had a higher rate of return), and the focus of the national economic work shifted to protecting production, ensuring employment and protecting exports.

According to the General Administration of customs, China exported 1 trillion and 290 billion yuan in March, down 3.5% from the same period last year. Exports fell 1-2 in the same period of 15.9% this year. Compared with 1-2 months, exports in March narrowed by 12.4 percentage points, while imports increased 2.4% in March. The growth rate was negative compared with that in 1-2 months.

It is echoed with the expected repair of imports and exports. Since April, the market and price of cotton, cotton yarn, grey cloth and clothing have entered a stable and rebound channel (CF2009 contract price rebounded from 10470 yuan / ton to 11750 yuan / ton, or 12.23%), and the confidence of cotton enterprises and investors gradually picked up. With the gradual dilution and mitigation of cotton downstream pressure, the whole industry chain is expected to be on track after late April.

What are the factors that support cotton mills and weaving enterprises to take the lead out of the "mire"?

First, the outbreak of a new global crown epidemic (Europe and the United States and other countries become "epicenter"), China has implemented the strict measures to prevent and control the city, and first controlled the epidemic situation.

Two, the domestic market has become the "engine" of consumption, effectively lifting the production of textiles and clothing. Global consumption has shrunk sharply in the first quarter, resulting in a sharp decline in foreign trade orders and a decline in shipping demand, and export oriented textile companies and trading companies have been hit hard. However, the rate of resumption of labor resumption increased rapidly. By the end of 3, the rate of resumption of Industrial Enterprises above Designated Size had increased to more than 90%, and the recovery rate of SMEs has exceeded 80%.

Three is stable foreign trade measures landing, China's textile and clothing orders stabilized. In April 7th, the Executive Council of the State Council again launched a series of stable foreign trade policies, and launched a policy of "combined boxing" to strive to stabilize the basic foreign trade market.

The four is the outbreak of India and some Southeast Asian countries, and European and American brand spinning orders will flow back to China. With the extension of India's seal up to May 3rd, there was a large scale stoppage and shutdown of the mills, cloth factories and garment factories, and the suspension of the major ports. Pakistan, Bangladesh and other textile giants epidemic situation is not optimistic. In Italy, Spain and France, signs of slowing down of the new crown pneumonia have begun. Many leaders have begun to explore relaxation measures to ease economic pressure, and the United States is also planning to press the "restart button", so buyers or retailers will be coming in.