A few days ago, the relevant person in charge of the China Cotton Textile Association made a survey in Henan to understand the company’s production and operation and market changes. The companies visited this time involved cotton spinning, filament weaving, knitting, clothing and other fields, covering a spinning capacity of more than 1.2 million spindles, and the products were mainly pure cotton yarn.

During the visits, companies generally reported that the effect of destocking was obvious in the first three weeks of October, and it slowed down from the fourth week, and the off-season began after November. The visited companies mainly used pure cotton in terms of raw materials, including reserved cotton and imported cotton. The inventory levels ranged from one month to three months. The products are mainly pure cotton yarns, with yarn counts ranging from 10 to 60. When the sales situation is good, it is mainly to order production, and in the off-season market, it turns to the production of conventional varieties.

 

In terms of employment, Henan is rich in labor resources, but regional enterprises also face the problems of aging employees and a shortage of technical talents.

 

In terms of cost, the average monthly salary of workers in the visited areas is about 4,000 yuan. With continuous technological innovation and equipment updates, about 30 people are employed for 10,000 spindles; the average electricity bill is about 0.6 yuan/kWh.

 

According to Yuan Jianlong, executive chairman of Henan Textile Association, the effect of transformation and upgrading of cotton textile enterprises in Henan Province is obvious. Large enterprises adopt the strategy of sharing costs with high output, while small enterprises tend to develop differentiated. Different types of enterprises are working hard to give full play to their respective advantages to gain a place in the market.

 

For the future development, enterprises generally take a cautious attitude, especially in cotton procurement, follow the market trend, on the basis of ensuring production, take a low price to buy, high price wait-and-see attitude.