Cotton Yarn Goes Out Of Stock To Reduce Burden On Light Textile Enterprises And Gradually Restore Capacity

According to the national cotton market monitoring system monitoring station information, according to the investigation of different scale textile enterprises in Anhui Province, the textile situation has improved since the middle of October, and the cotton mill's textile inventory has been accelerated, and the production capacity is gradually recovering.

A small textile factory in Anqing has had such an unforgettable experience for six months: after the Sino US trade escalation in May, the price of lint and cotton yarn has dropped sharply, the sales of cotton yarn have been difficult, the inventory has been increasing gradually, the loss of the company has increased, and the confidence of the business has been frustrated. In July, in order to cope with the hot weather and textile downturn, the factory adopted measures to limit production, changing production class 3 to 2 classes, and reduced production capacity by 1/3. Despite this, the stock of cotton yarn is still increasing, with the peak production reaching more than 2 months. In early October, the sale of cotton yarn was improved in the early days of the Sino US trade negotiations, and the factory was able to seize the opportunity and dare not increase the price to inventory. Today, the stock of cotton yarn is less than 20 days, and has returned to normal stock level. Although it is still not profitable, the burden of heavy pressure on enterprises has been significantly reduced. Looking ahead, the market is expected to turn better. Recently, the factory has changed the production class 2 class to the 3 class, and has resumed its previous capacity.

In Anhui, there are quite a few small and medium-sized textile enterprises in this way to cope with the difficult situation of operation. Measures are being taken to stop production and limit production. Now that the situation has improved, business confidence is slowly increasing, and the production capacity of many enterprises is also gradually recovering. Textile enterprises generally hope that Sino US trade negotiations will eventually have a good result and create a good external environment for the survival and development of enterprises.