Cotton Yarn Production and Demand Assessment for September 2023 - Production Down, Consumption Up
Production declined slightly
The overall trading atmosphere in the cotton yarn market in September showed a gradually weakening trend, with better turnover in the first half of the month, followed by a decline in turnover and a gradual decline in cotton yarn prices, with the peak season not being characterised by a clear lack of prosperity. With the weakening of the market as well as the continuation of substantial losses of spinning enterprises, the phenomenon of production cuts and shutdowns continue to increase, spinning enterprises continue to decline in the operating rate, according to our statistics, the cotton yarn industry in September, the operating rate fell by 2.2 percentage points to the level of 75.3%, a comprehensive assessment of the cotton yarn (excluding recycled) in September production of 472,000 tonnes, an increase of 14.8% year-on-year, a decline of 6.0%; January-September cumulative production of 4.323 million tonnes, up 24.7% year-on-year.
Cotton yarn import and export is expected to change little in September
Imports, according to the pre-order situation, is expected to arrive in September is still quite a lot of October or decline, the preliminary assessment of September arrivals in the vicinity of 172,000 tonnes. For export, it is expected to be around 15,000 tonnes.
September cotton yarn stocks continue to rise
September is the traditional textile season, but the cotton yarn market still failed to achieve the de-stocking, the overall inventory is still rising, but the rate of increase has slowed down. Sub-sectoral view, spinning enterprise inventory increased by 1.5 days to 21.3 days level, the overall inventory is still at a neutral level, the pressure is not great; weaving mill orders reduced, cotton yarn with the use of most of the buy, inventory slipped slightly by 0.4 days to 7.7 days level; traders, on the one hand, cotton yarn imports in September increased greatly, on the other hand, although some domestic yarn supply chain or large-scale traders have to go to the inventory, but it is reported that most of the inventory is transferred to the On the other hand, although some supply chain or large traders have gone to stock, it is learnt that most of the stock has been transferred to other small traders, and the overall commercial stock still has a small increase. Comprehensive assessment, to the end of September cotton yarn ending stocks reached 1.252 million tonnes, an increase of 32,000 tonnes over the end of August, compared with the previous months of about 100,000 tonnes of growth has slowed down significantly.
Cotton yarn consumption continues to increase
In September, although the downstream orders are not good, the weaving mill start-up showed a high and then low trend, but the average start-up rate is still higher than in August, a preliminary assessment of September cotton yarn (excluding recycled cotton yarn) consumption of about 593,000 tonnes, an increase of 0.2% year-on-year, a decline of 1.8%, 1-9 cumulative consumption of 48.33 million tonnes, a year-on-year increase of 7.0%.