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Cotton textile prosperity index rises, companies increase stocks of high-quality cotton
On June 22, the China Cotton Textile Industry Association released the May China Cotton Textile Prosperity Index. The index shows that compared with April, China's cotton textile prosperity index rose by 0.98 to 50.21 in May, in line with expectations. Among them, the spot price of cotton futures rose rapidly in May, the price of gauze products followed the rise, and the turnover rate of reserve cotton was high. With the support of the original orders, the company is producing normally, and yarn sales are relatively hot. Data shows that the raw material inventory of cotton textile enterprises increased by 3.93% month-on-month in May. Among them, raw cotton inventory increased by 5.01% month-on-month; non-cotton fiber inventory increased by 0.88% month-on-month. According to analysis, the reasons for the increase in stocks from the previous month include: the market is bullish on medium and long-term cotton prices, and companies increase their stocks of raw cotton; there is a large gap in high-quality cotton, and companies increase stocks of high-quality cotton; the market for differentiated products is better to ensure production stability And continuity, some companies increase the inventory of chemical fiber staple fiber. According to analysis, in June of this year, under the stimulus of relevant policies, the spot price of cotton futures and the transaction rate of reserve cotton have both fallen, but there is still the possibility of rising cotton prices in the later period. According to survey data, about 30% of the companies are holding a wait-and-see attitude. Raw material inventory is within a month. The raw material inventory index in June is basically the same as that in May, or steadily decreased slightly. Article Keywords: Cotton Spinning Prosperity Index