China Cotton Bank Association Went To Henan For Investigation

From April 7 to 18, Jing Shen, the full vice president of China Cotton Textile Industry Association, and his delegation visited Henan Province to investigate the production and operation, raw material guarantee, digital transformation and other related conditions of the enterprise.

Visiting textile enterprises mainly produce pure cotton yarn. In recent years, in order to avoid the impact of Xinjiang pure cotton 32S and 40S yarns, Henan enterprises gradually turn to spinning pure cotton low count 26S, 21S, 16S and high count 60S and 80S yarns. Some enterprises produce cotton and viscose blended yarns and rabbit hair like differentiated yarns. The enterprise said that the overall performance of market demand this year was not as good as that of last year. In March and April, there were still some orders to do, but the market was unclear later. After the United States imposed tariffs, the market demand further shrank, some orders were forced to cancel, and export products were sold domestically. In the later period, the pressure on the domestic market would increase, and the price competition was fierce, so it was difficult to avoid internal volume. The enterprise adopts a conservative business strategy, reduces the startup to maintain production, and avoids the peak power consumption period. Some enterprises change their production from three shifts to two shifts, and the yarn inventory is controlled at a low level. In order to ensure cash flow at a reduced price, a few enterprises with strong sales ability can achieve a break even. Enterprises are cautious in purchasing raw materials. They buy on demand and on bargain. Most enterprises maintain cotton stocks for about a month.

In the face of the impact of Xinjiang yarn and the growing production cost, digital transformation has become the key path for the sustainable development of Henan enterprises. It improves the production efficiency of spinning, winding and other links, increases the output, reduces the average production cost, and enhances the risk resistance ability of enterprises that have not made technological transformation. For the digital transformation of enterprises, China Cotton Textile Industry Association will build a supply and demand docking platform and carry out activities such as technology promotion and display, technical training, etc., especially for the demand of intelligent transformation of small and medium-sized enterprises, to systematically promote the digital transformation of the industry.

(Source: China Cotton Association)